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I've been selling alot of bike stuff this year and have been notified by eBay that I have exceeded the threshold and too enter my NI number.
I still have a lot more stuff to sell, where do I go from here? Will I end up paying tax on everything I sell? I was aware this was a thing but had forgot.
Are you selling at a loss, eg bits you've bought new and then selling once you've used them a bit? In that case keep your original purchase receipts and records of sales just in case and you should be fine. No tax to pay. If you are actually trading, ie buying bits specifically to sell for a profit, then you need to register for self assessment and pay tax on the profits.
I have a receipt for a few of the larger things I've sold which if presented will bring me back under the limit.
Id love to say selling bikes that I've already purchased is profitable but it isn't.
You may have to do a self assessment to document your position on income from sales as HMRC may assume you are trading. If you can square it away with receipts showing losses from sales then you should not get a tax bill but I hate doing self assessments and was very happy when they put the level up to £150K income before having to complete one and now make sure I keep under the eBay limit.
To me, it's just another reason not to bother using ebay any more.
I still have a lot more stuff to sell, where do I go from here? Will I end up paying tax on everything I sell? I was aware this was a thing but had forgot.
I've also had this and have also had the letter from HMRC which I responded to via e-mail and they have assured me that if it's just things you're clearing from your house, you won't pay tax. I'm up to £13k already this year, so really hope not! I'm certain I'm not making a profit!
This cropped up on The Money program on radio 4.
If you buy and sell for a loss then you’re not generating taxable income.
The rules are in place so that traders can’t hide from HMRC on ebay
This cropped up on The Money program on radio 4.
If you buy and sell for a loss then you’re not generating taxable income.
The rules are in place so that traders can’t hide from HMRC on ebay
Fundamentally this.
You don't have to do anything just because eBay reports data to HMRC. Numerous threads on this already.
Its not just ebay, but Vinted, Debop etc. Its now the law that once you hit a certain amount of sales (£1000) their systems are required tonotify HMRC
I'd say the chances of HMRC actually bothering to pursue somebody selling some bike stuff on ebay are slim to non-existant
I'd say the chances of HMRC actually bothering to pursue somebody selling some bike stuff on ebay are slim to non-existant
Not my area, but whilst we have bigger fish to fry, given the coverage this move has had in the last 12 months, someone will be caught out for failing to declare income from online selling.
HMRC don't need to 'bother' as the assessments are done automatically? and any tax owed is calculated. I am 100% PAYE but still owe extra tax each year and HMRC work that out and inform me how much - I don't do a self assessment.
HMRC will have all the inputs from eBay, Vinted, Interest on savings over £500/£1000 and so on and make the assessment based on that won't they? If would then be for you to evidence the sales from eBay were not profit.