Late Tax Self-Assessment for 2023-24

[viki_d]

My partner has a large Lego collection he's being building up for 40+ years and a couple of years ago he started selling some of it via eBay. As he's mostly selling for roughly the same price he paid for it we didn't really think about the tax implications. Also he started selling it prior to eBay reporting directly to HMRC.

Since eBay now report directly to HMRC we thought we'd best do the appropriate paperwork to show we're not actually making any money, so for the tax year just gone (2024-25) we've started collecting the evidence and will use an accountant to work it all out for us. However, we just realised that the date eBay report sales data from is January 2024, so this catches the back end of the 2023-24 tax year as well.

In this case we thought it best to go back two years for the tax assessment, but then realised this makes our reporting of 2023-24 late. I'm pretty sure the HMRC won't really care about why it's late (sure they hear all sorts of excuses) so we want to know what the implications are if the first time we file a tax assessment, we're doing it for the previous two tax years rather than just the previous one. I'm guessing they won't be happy and fines might be involved?

[moldosgifts]

If he is selling his own items that he bought some time ago there is no tax implications.

If he has bought anything with the specific purpose of selling it there are.

You need to look at hmrc guidelines on this.

[honeymonster007]

Curious as to why you think you have to file a self assessment form?

You shouldn't get any fines unless your already registered as self employed.

[papso22]

Speak to an accountant before doing anything else.  It doesn't sound like trading income to me so doing SA is not necessary.

[suelel1968]

If everthing is exactly as you state above there is no tax to pay.

Ebay reporting to HMRC does not mean you have tax to pay. HMRC might send  a letter asking you to file a tax return if you meet the tax criteria.

If everthing is exactly as you state above, you don't, there is no tax to pay.

EBAY may ask for NI number, bcause they have too. It means nothing to you regarding tax liabilities.

If any buying to sell is, or has, gone on and I'm not accusing you, there is only tax to pay after revenue of £1000. Ebays reporting as you point out, is calendar year, not tax year. The reporting alone cannot necessarily mean you meet the tax criteria for one year.

If revenue goes over £1000, you can do proper accounts for which there are some generous deductions to be made as expenses to reduce profit. All legal and available on HMRC website. 

One more thing. I have made accounting mistakes over the years and have always found HMRC very understanding and helpful regarding honest errors brought to their attention. Never been fined, or jailed, just helped.