General Chat

Many of us sell stuff on line so it is wise to be aware of this. Apparently they have been sending out letters to people they consider may be over the limit.

If you're selling online on a regular basis to make a profit or are buying stock in bulk, HMRC is more likely to consider you a business and that you're selling to make a profit.

If you're selling online, it is your responsibility to get clued up on whether you'll need to declare tax.

Ebay's website says sellers are 'responsible for complying with all applicable tax laws. Sellers must follow all tax regulations that apply to eBay sales.'

HMRC's trading allowance means you can make up to £1,000 a year without paying tax. This is not to be confused with your personal allowance, currently £12,570, which is the tax-free portion of your full-time earnings.

You might also have to pay capital gains tax if you make a profit when you sell a personal possession for £6,000 or more. These possessions include jewellery, paintings, coins and antiques.

Given that everything is conducted online, records of your transactions are easily-accessible so it won't be too hard to calculate whether or not you exceed the £1,000 allowance.

https://www.thisismoney.co.uk/money/savemoneymakemoney/article-12064085/Why-face-shock-tax-bill-selling-online.html?ico=mol_desktop_home-newta

That very interesting AnnG ty

I actually know a few people who "wheel & deal" on Ebay etc and make loads of money and no they don't pay any tax but maybe they will get a shock soon!

Florence in the hebrides

People tend to forget about this when they start selling on ebay Ann, especially if it becomes a more regular thing! They also forget that they could be liable for Class 2 NIC as a self employed person if they are under pension age. Class 4 NIC on their profits above a certain amount can be due in addition whatever their age. This is on top of any NIC they pay in other work as an employee. HMRC can go back many years as well.