Ebay Credit and new UK laws

[agolaymonday]

Hi folks,

Just wondering if there's been anymore movement on Ebay bringing in a credit/voucher feature for sellers - this is going to become pretty important for Any UK sellers to continue using Ebay as we will be required to register as sole traders when our yearly sales amount to over £1000. 

This can easily be reached in a single sale, I can't see many individuals having the time to become sole traders when only making the occasional sale.

I know it's not Ebay's job to help it's users comply with local laws but as credit is not subject to tax laws it would be a handy work around.

[jow1995]

please read previous threads concerning Digital selling rules, the total is £1700 or 30 items.  I am sure ebay will not been sending any vouchers to offset this. 1000s of sellers  will   close their accounts and ebay will increase the selling fees. 

[agolaymonday]

It wouldn't be a case of sending any vouchers, merely having a banked value against a user's account.

It would bring in extra admin for Ebay so I know it's unlikely, but like you say, it's going to become unusable for many UK residents sadly 😕

[myriad*seller]

The changes only apply to BUSINESS sellers

Private sellers are unaffected and do not have to register as a sole trader 

Business sellers buy/grow/make items to sell 

Private sellers sell off their old unwanted items

[agolaymonday]

As I understand it - anyone that sells over £1000 per annum would be classed as a business by the UK government, although I would be VERY happy to be corrected here.

[kempseykate]

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@agolaymonday wrote:

As I understand it - anyone that sells over £1000 per annum would be classed as a business by the UK government, although I would be VERY happy to be corrected here.

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Anyone that selles over £1,700 or has 30 sales a year will have their usage sent to HMRC.

Private sellers, selling their own stuff don't pay tax (unless Capital Gains Tax kicks in).

Business sellers should already be declaring anything over £1000 turnover to HMRC.

Nothing has changed.

[myriad*seller · Accepted solution]

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@agolaymonday wrote:

As I understand it - anyone that sells over £1000 per annum would be classed as a business by the UK government, although I would be VERY happy to be corrected here.

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That is totally incorrect

Private sellers who sell over £1700 per annum (inc P&P) will not be required to register as a business or sole trader

Their details will be given to HMRC, but if they are not trading, they will not be required to complete a self assessment - they can simply prove the items were their own secondhand unwanted possessions

Only business sellers who buy/make/grow items to sell will be required to register as a business and complete a self assessment. Only business sellers who exceed their personal tax allowance (or who are employed, and earning over the tax allowance) will be required to actually pay any tax.