eBay/HMRC PRIVATE SELLING OF CHATTELS CAPITAL GAINS TAX & CONSUMER PROTECTION LEG., PRIVATE SELLERS

[red-bat66]

Morning All,

I wrote to the HMRC as I wanted to sell my 50 year old plus bubble gum card collection which I had graded through eBay. I have had these cards since I was a kid and I had them graded at the PSA. I do not buy and sell and I am a private seller on eBay. HMRC said and I quote: A chattel is an item of tangible moveable property. Where a chattel is sold for less than 6K then there is no requirement to calculate the taxable gain & there is no capital gains tax to pay. A wasting asset is one that has a predictable life of 50 years or less & is generally exempt from capital gains tax unless it is used as part of a trade.

My question is that eBay have said that I now have to become a business In order to comply with government/eBay consumer protection legislation. I am not registered as a business so how should I comply with this?

[moldosgifts]

Are you saying that batman card is 50 years old?

Plus your photos are supposed to be of just the item your selling

So i can see why they have told you to register as a business as you appear to be.

Your certainly present yourself as a business. 

Best of luck getting them to change their minds

Not sure I can give ethe answer you seek, but you have some very nice stuff.

[555njp]

Hi, eBay haven’t exactly been honest with you I’m afraid. I took a quick look at your listings and sold listings and what I suspect has happened is eBay’s algorithm has flagged you as a business seller because: 1/ Your turnover is very high and: 2/ You have quite a lot of items that are ‘New’. (So nothing to do with consumer protection or legislation, they just assume you are trading).

From what you say, there is no legal reason to become a business seller, and to be fair a real human (as opposed to AI) should be able to see that.

So what I’d suggest is first off, call eBay CS and explain what you are doing and why this account should not be a business (I.e. there should be a defined number of lots that will not be restocked diminishing over time as everything sells).
If that fails then you could always open another one or two private accounts to spread the turnover out across them as you gradually sell your collection?

Unfortunately eBay is riddled with businesses operating on private accounts, purely to get around the fees. EBay seems very inept at shutting these down so rather than investigate each account properly, the AI system they use to identify those potentially breaking the rules does trip up a few genuine private collectors.

I hope you can get it sorted. 

[*vyolla*]

Your listings look absolutely fantastic, but it may be the presentation and volume of cards you've sold that have made eBay decide that you need to operate on a business account.

To be honest, I don't know how you'll be able to argue this with eBay once they decide that you need to be operating on a business account, contacting eBay CS would be pointless as they don't make the decisions. 

[plpmr]

possibly one of the problems is that you claim -

"Red-bat66 Europe's Premier Seller of PSA Graded Non-Sports Cards on eBay"

[cobwebcottage]

They have probably linked both of your selling accounts which are selling similar items. 

[vinylscot]

Sadly, I think you're going to need to start again with most of your listings. As @moldosgifts mentions above, many of your photos show items not included in your lots (and are generally far too "busy"). Photos form an important part of the description, and many buyers will bid or buy on the strength of what they see in the pics. Many will not even read the description.

Further, if I can look at just one of your listings, the one for Batman 1966 © A&BC CRIME CZAR #10 NEAR MINT 7 - Vintage garno PSA, do you have the express permission of the rights holder to include the video clip from the Batman movie? I'm almost certain you do not. 

Your item specifics are all over the place too - this card features The Joker and a couple of others. Your item specifics say the character is Robin, and the featured person is Adam West.

Whether you are a private or business seller, you are just storing up problems for later with these listings.

[papso22]

And this is also not allowed

"I accept payment by any of the following methods:

PayPal - Fast and convenient for both buyers and sellers - buyer can pay using credit/debit card or bank account

Payment on Collection - For in-person transactions.

Credit Card - Buyers can contact me during checkout to make a credit card payment.

Cheque/Postal Order - Buyers can send a cheque or postal order.

Escrow - For high-priced items".

[papso22]

"Credit Card - Buyers can contact me during checkout to make a credit card payment".

Do you have a merchant acquirer account?

[garno_psa]

Yes Batman cards are that old. A&BC Batman 1966 The original series. Yes I try to make the items more interesting to the buyer and inform them hence the picture for reference. As I say I buy but do not sell. I will have to write once more to HMRC. In fairness eBay have been given the guidelines by HMRC so they are doing what they have been told to do. Shame really I loved my hobby business and to pass my collection which i've owned since I was a kid on to new owners. Can't say that the extra pocket money was not useful too. eBay will stop me selling at the end of the month and I will just use the account for buying. It is what it is.......

[garno_psa]

Thank you for this useful info., I'll try a few times with eBay as my first attempt pointed to me being shut down and just being able to buy. I'll revise the items listed as new too and if that doesn't work migrate on to other accounts. Furthermore I will contact HMRC again today to see if they have a workaround in my case. eBay to be fair I think are only doing what they have told to do. Hey Ho!

[garno_psa]

Thanks for this and I think your right it is pointless to try and make my case. At least the first attempt failed!!

[garno_psa]

Yeah I guess your right there and thanks for your comment.....Maybe Europes private seller isn't going to cut it now. Thanks for the feedback. Best

[garno_psa]

Thanks for the input. Noted.

[garno_psa]

Thanks for the inout. Never been pulled up for that one in 10 years. Noted

[garno_psa]

Thanks for the input. Didn't even know I put that down. Cut and pasted from somewhere I guess. It's all not relevant now I guess as eBay will shut me down and it is pointless trying to prove my case. Hey ho...

[red-bat66]

Yes. 1966 to be exact. thx

[red-bat66]

Thanks for your response. Noted

[lovelacelinenlife]

The tax man as such isn’t interested if your selling old or new, a business or a private seller, the money generated is key here, if your selling can show what you’e bought and what was old ‘your’ stock and deduct that from your sales and make less then £10,000 pa after ex’s that’s all they care about but if your Earning more than that regular just transit to a business seller and pay your taxes, hiding in the shadows is long… of course if your making a mint and trying to evade paying up then that’s an other thing? 

Also.. under £10,000 you don’t even need books, I do of course just for my sanity should a old wrinkly bespectacled  Scottish guy about 4 foot tall wearing a black raincoat come knocking at my door lol 

[papso22]

Can you please provide a link to the HMRC guidance on the £10,000 limit?