Selling a car and HMRC

[kingsway99]

We are selling our old car and recommendations suggest Ebay.  It will be around £2k which is above the limit for reporting to HMRC.  Although it's a different listing format I assume Ebay still report car sales - is it going to be worth the hassle or would I be best sticking to word of mouth/marketplace?  I would rather take a bit less money than have the hassle and expense of getting accountants to sort everything.

[lucy_farmer]

I don't think selling your own old car is in any way interesting to  HMRC.

If everybody had to get accountants involved every time they changed car it'd be bureacratic mayhem...

[fargvs]

Unlikely that HMRC will be interested if you are selling a privately owned Car.

Best way to sell a Vehicle --- Using a PC/Laptop  (using Mobiles/Apps listings often fail) and these links > 

 https://www.ebay.co.uk/help/selling/listings/listing-tips/selling-classified-ads?id=4167&st=3&pos=2&...

https://www.ebay.co.uk/help/selling/fees-credits-invoices/motors-fees?id=4127

https://www.ebay.co.uk/help/selling/fees-credits-invoices/setting-changing-payment-method-fees-selli...

 Vehicle listing fees are charged for each listing/relisting whether sold or not and are non refundable ---Classified Ads. at total fee of £19. 99 will allow the exchange of contact details for viewing and price negotiation over a 30 day period --- set the Start price at or near the price that you would find acceptable --- Avoid inviting Offers which may never be completed --- just continue to Negotiate an acceptable selling price and only remove the Ad. when you have a definite buyer with Cash in hand or a  Bank Transfer is safely deposited/confirmed before handing over Vehicle keys/documents on buyer collection. No further FVF selling fee is charged.

[cbclassicbuyer]

I can guarantee HMRC most definitely won't be interested in the slightest if you're selling your own car. 

[sml192]

Assuming the car is being used for personal use then there won't be any tax implications. 

If you do decide to try selling it on eBay then I would definately use a classified ad rather than a standard Buy it now or auction. 

[4_bathrooms]

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@kingsway99 wrote:

It will be around £2k which is above the limit for reporting to HMRC.

---

Are you referring to the digital sales reporting thresholds?

[kingsway99]

Yes it is the digital sales reporting thresholds I'm concerned about.  

[wintersdawn1]

Example — selling unwanted items

You’re clearing out your attic and decide to sell your unwanted items using online marketplaces. None of the items you sell are worth more than £6,000.

It’s unlikely that you’ll need to tell us about this income or pay any tax, no matter how many items you sell.

If you sell an item for more than £6,000, you may need to pay Capital Gains Tax. The £6,000 value for a single personal possession for Capital Gains Tax, also applies to the total value of items which form a set, for example:

• chess pieces

• books by the same author or on the same subject

• matching ornaments, such as vases or statuettes

https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms#s...

• If you are selling unwanted personal possessions such as old toys or clothes, this would not be classed as trading or miscellaneous income, and there is usually no tax to pay. In some circumstances there may be capital gains tax when selling valuable items such as jewellery, this is covered in our flowchart.

https://www.litrg.org.uk/news/selling-online-make-sure-you-keep-clear-records

Do I have to share information with HMRC?

From January 2024, new UK digital sales reporting rules require digital platforms like eBay to share information with them. However, this reporting doesn’t change your tax obligations.

On eBay, this should only affect newly registered accounts in 2024, which will extend to all accounts in 2025.

eBay will only report if you pass certain yearly sales thresholds:

• If your total sales on eBay exceed €2000, or roughly £1740, after fees.

• If you complete 30 or more sales transactions on eBay.

In general, selling personal items is not taxed if they’re below £6,000 and you’re not selling as part of a business.

https://www.ebay.co.uk/sellercentre/selling/selling-online-and-hmrc