UK National Insurance number my Ebay account payouts now on hold

[night-monkey]

So, I’ve been selling mainly my old stuff on Ebay since 1998 before .co.uk got started. 
Ebay now demands my national insurance number & give a link to the HMRC guidelines which are as clear as mud.

1. Will Ebay now simply retain all my funds in their account unless I comply?
2. How is a hobbyist & de-clutter seller supposed to differentiate between their listings of old unwanted stuff & stuff deemed trading? So, if the majority of listings are de-clutter old clothing many sold at a huge loss do you split that from stuff that could ambiguously be deemed trading? or if you are notifying HMRC do you include the loss-making unwanted possessions? Or do you only include the listings and sales that could be trading?
3. If a collector wants to sell something he/she has bought but now bored with & wants an upgrade money for some other detritus is that 'trading' or is it commercial gain or indeed commercial loss? 

It appears digital platforms are NOT asking for NI numbers so why it appears only Ebay?

[*vyolla*]

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@night-monkey wrote:
So, I’ve been selling mainly my old stuff on Ebay since 1998 before .co.uk got s...

1. Will Ebay now simply retain all my funds in their account unless I comply? Yes.
2. How is a hobbyist & de-clutter seller supposed to differentiate between their listings of old unwanted stuff & stuff deemed trading? So, if the majority of listings are de-clutter old clothing many sold at a huge loss do you split that from stuff that could ambiguously be deemed trading? or if you are notifying HMRC do you include the loss-making unwanted possessions? Or do you only include the listings and sales that could be trading? 

   A private seller is one who is just selling off their own personal items such as clothes from their wardrobe, bits from their loft/garage etc. A Business seller is someone who buys or makes items to sell on.

3. If a collector wants to sell something he/she has bought but now bored with & wants an upgrade money for some other detritus is that 'trading' or is it commercial gain or indeed commercial loss? It's not trading, but if the item were to sell for over £6,000 there may be Capital Gains Tax to pay on the gain.

   It appears digital platforms are NOT asking for NI numbers so why it appears only Ebay?

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   Other platforms are asking for NINOs once sellers meet the threshold of 30 items or £1,700.

@night-monkey

[*vyolla*]

Just to add, having just had a look at your recently sold listings there's nothing there to indicate that you're anything but a private seller, so all you have to do is provide eBay with your NINO and continue to list your items same as ever. 

[night-monkey]

Thanks for taking the time to reply its appreciated. Much of my stuff is indeed my old stuff, clothing buyers remorse etc, old stuff in drawers. About 20% of my listings (collectors stuff) could be deemed trading but is mixed with my other listing & is ambiguous anyway.

That is the grey area … it seems even private sellers could be due to pay tax or complete a tax return if it’s over a certain amount. 
Another seller friend has spent laborious hours filling out xl sheets for mileage expenses linked to his hobby & submitted a somewhat time-consuming tax return albeit claimed money back from HMRC.
I really dont want to be having to submit a tax return for basically the passtime of eBay selling.

It still seems unclear if my listings are part old stuff & a few possibly ambiguously deemed trading are we supposed to split them? Declare the lot … presumably then show some of the clothing as a loss?

I’m also confused how can eBay legally withhold my money?, I’d rather they just suspend my account.

[papso22]

The rules on what is trading and what is not are set out on HMRC's website.   They are quite clear so I am not sure how you can have sales that might be 'ambiguously deemed trading'.  You should know if they are or not. 

Your suggestion of splitting them into another account is a reasonable one going forward, both for HMRC purposes and consumer law.

[*vyolla*]

I honestly can't see why HMRC would think that you're trading as a business here, I'm not a tax expert and don't offer advice other than my own personal opinion, but I'd just provide eBay with your NINO, as requested, and wouldn't worry. At a guess, worse case scenario is that you receive a standard computer issued 'nudge' letter asking you to confirm that you're selling off your own personal bits and pieces and that would be it.

You should also be aware, that if a seller is trading as a business, they have a £1,000 Trading Allowance anyway before they have to complete a self assessment form. 

If you're worried about anything you could contact HMRC and put your mind at rest.