17-01-2025 3:03 PM
"eBay has to report all accounts not just business sellers." - That is so, however questions would certainly be asked of a seller who was registered as a business on eBay but not with HMRC should they have exceeded the £1000.
Genuine private sellers would have much less worry, whilst businesses trading illegally will probably be registered with HMRC, so they will have nothing to worry about.
See below...
For residents of the UK, eBay is legally required to report both your sales transactions and certain personal or business information to His Majesty’s Revenue and Customs (HMRC). eBay will report this information should you meet either of the following thresholds within the calendar year:
- Your total sales on eBay is equal to or more than £1,740 after deducting fees and commissions or taxes
- You complete 30 or more sales transactions on eBay (cancelled transactions are not included in the calculation)
Your total sales for the year are calculated based on the full amount received for your sales transactions excluding:
- Shipping amounts paid to eBay
- VAT collected and remitted by eBay
- VAT charged on fees
- Amounts deducted by eBay for fees, coupons, cancelled or deleted orders
- Returns
I would love to know how those figures were determined... many private sellers could sell far more than 30 items a year especially if they are clearing their home prior to the sale of a property or a bereavement etc. Plus private sellers selling their own personal items would not be subjected to income tax, unless ( thinking out loud here) it is to " catch" undeclared income with anyone on benefits? And I think capital gains would be any iasset over £6000 ( I was corrected about this on another post and told it was £3000 but it still shows as 6K on gov and eBay? )
Examples below from eBay...
There's no new 'side hustle tax'!
We want to give you peace of mind that there’s no new ‘side hustle tax’ or a change to existing tax rules for selling online.
In general, selling personal items is not taxed if they’re below £6,000 and you’re not selling as part of a business.
So, you still won’t pay tax unless:
You are ‘trading’ or buying and selling multiple items to try and make a profit or run a business
You sell an asset for more than £6,000 (the level where capital gains tax may apply)
Grace, Manchester
Grace sells old clothes to make space in her wardrobe. Even if she sells a lot of her old or unwanted clothes she isn’t trading and sells her old clothes for less than she paid for them, so there is no tax.
Annual eBay sales: £420
Annual eBay profit: £0
Taxes owed: £0
Claire, Bristol
Claire sold her old furniture when she was moving house. Some of the furniture was valuable, but always less than £6,000 per item, so there is no tax.
Annual eBay sales: £4,000
Annual eBay profit: £0
Taxes owed: £0
Ben, London
Ben sells his collection of trading cards for a profit. Even though he receives £18,000 and makes a profit of £2,900, he has a capital gains tax-free allowance, so there is no tax.
Annual eBay sales: £18,000
Annual eBay profit: £2,900
Taxes owed: £0
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.
When you may need to pay tax for selling goods online (according to HMRC)
Generally, only business sellers trading for profit might need to pay tax.
If you’re selling unwanted personal possessions, such as used clothes, an old mobile phone or unwanted furniture, it’s very unlikely you will have to pay income tax.
If you sell possessions for more than you paid for them you may have to pay capital gains tax, but only if your item sells for more than £6,000 and you exceed your annual allowance for such gains (currently £3,000).
For more information on when you may need to pay tax for selling goods online, see guidance and examples from HMRC.
You can also use HMRC’s ‘checker’ anonymously to check whether you may need to report any income.
Keep selling with confidence
Tax can be complicated. If you have any questions about whether you’re running a business or whether you have capital gains to pay on asset sales over £6,000, you should consult a tax advisor or look to guidance and examples from HMRC.
