eBay

george758555 · ‎02-01-2024

Hello,

I am a private seller. I am slowly selling a railway model collection that was left to me by a friend who died.

The items are used, but the values sold are over £ 1000 a year. Does this put me under the category of those who need to declare them for VAT ? Can someone advise ?

Thank you

*vyolla* · ‎08-01-2024

@1984jo wrote:

but basically as long as it my items and I not making a profit on my items, so in theory if I brought something for £30 but selling it for £10 some time later because I no longer want it, it is all good, and I can sell has much as I want. It only if I brought something at say £10 and selling it straight away for £20 than I only have up to £1,000 to do that. If I got that right.

You can be a private seller and still make a profit, you don't have to sell items to make a loss. For example,if you're having a clearout of your own personal items and come across an old Star Wars figure it will sell for more than you originally paid for it.

If you buy one item in the sales and then decide you that it's not for you it's fine if it sells for a bit more than you paid for it.

The line would be if you spotted lots of items you could buy with the intention of reselling to make a profit. Then you'd be considered to be a trader and the £1,000 Trading Allowance would apply.

1984jo · ‎08-01-2024

Thanks that helps a lot, so I can still sale as much as I like because they are my own stuff. Good was a little worried, I am a university student and do not have much money so selling stuff that been in my wardrobe or loft to get some extra money is really helpful to me because students finance is not a lot and definitely can not live.

shaun4339 · ‎10-01-2024

Hi Vyolla - I am new to this blog but found your comments very helpful. Thanks. I want to explain my own situation in the hope that it may help others like George with his trains. I think there are situaions like my own where I think one thing and HMRC might think another. I am going to write to HMRC to clarify so I make sure I am proceeding correctly. Firstly, I have always been self employed, used an accountant and fill in my tax returns. I am currently VAT registered and I'm Designer who sells my freelance expertise. Over 40 years I have collected a lot of childrens toys and die cast cars and so have a huge private collection (compared to most). I paid for all these at market rate if second hand or at shop price if new. Many have been displsyed in huge bespoke cabinets in my home for 30+ years for example as decoration. However as I approach retirement I need to off load his collection so have begun to sell on ebay. Over time these items will all sell largely at more than I bought them for. For example I have over 2500 die cast cars so probably 200+ listings on ebay at anyone time as a private sale but to anyone (like HMRC) peering at my account, it would appear like I am a vintage toy trader. I am not. This is my private collection and most items are over 30 years old now. I have images of them stored in my loft, I have images of the cabinets but I still think HMRC will pick me up amd say I am a trader because of the number of items I am selling, the rate of sale of similar items, and the amounts they are selling for. I would welcome your view on this... Thanks

matilda59 · ‎14-01-2024

Believe so pal

*vyolla* · ‎14-01-2024

Hi @shaun4339 ,

I know what you mean, I have 3 huge floor to ceiling display cabinets featuring my collection of sci-fi figures that I've also amassed over 30 years.

If I were to ever list these on my private account I would expect some kind of nudge letter from HMRC asking me to confirm that this is my own personal collection and that none were bought with the intent to re-sell for profit.

Taking photos of them on display is an excellent idea.

Apart from that, I couldn't tell you how this will go, I wouldn't expect HMRC to insist that I was trading, but wouldn't like to categorically state that they won't. I would be arguing this though.