Plans to tax us for selling on eBay. What do you think?

A friend of mine reported a 'back street breeder' of dogs to HMRC a few year's ago... despite reports to the council and RSPCA nothing was done - the condition of the dogs wasn't great at all.
As a number of litters yearly were being sold at very high prices, she went down that route and they did take action.

This is not a new tax. It is simply that HMRC will be looking a little closer at income.
Any earned income from a job or trade however small should be declared and assessed for tax.
You are not profiting when you have a clear out so there's no need to worry. If you buy junk and sell it on then you do need a tax return.

it is aimed at businesses trying to avoid tax and using ebay. Not aimed at the individual who sells very little

cc

Sorry, see my last post is very similar to others. But it would be difficult to work out the profit on many items unless they were bought specifically to sell.

That is exactly what HMRC want to target - people who buy items specifically to sell on. They will not be taxed on their sales receipts directly, they will be required to fill in a tax return. If they were buying to sell on they will have to keep records of what they paid for them, including receipts, so that their profit is shown. It is the difference between 'Trading' and selling a few old possessions you no longer want. That's why they will only look at people selling a significant number of items every year. Most people having a bit of a clear out won't be in that category.

Some items, Art, Jewelry, Antiques would be liable, classic cars and other things that normally depreciate aren’t liable

there has been NO CHANGE in the law on who should pay tax and how much they should pay. what HMRC are doing is making sure that people who trade via places like vinted and ebay pay the tax that they should.

The Guardian seems to have all the vital information. The two critical points are:

"Everyone has a trading allowance each tax year, which means they can earn up to £1,000 without paying tax."
and
"HMRC says people selling off clothes or items that they originally bought at a higher price will not be liable for tax on that income."

www.theguardian.com/money/2024/jan/01/selling-goods-online-be-warned-hmrc-will-soon-know-about-it

Sorry, see my last post is very similar to others. But it would be difficult to work out the profit on many items unless they were bought specifically to sell.

I'm a bit puzzled by the Ebay reports, if you're selling something you normally only pay tax on the profit you make and many on Ebay only sell their own old possessions. Surely they wouldn't be taxed on the whole amount?

OldFrill

Good that Airbnb are having to comply.

I do agree, there was a house that was used solely as an Airbnb behind our last home and the weekends were hellish with noise.
There's a world of difference between letting your home out from time to time and buying a property solely to use as an Airbnb.

Germanshepherdsmum

They will not be going after people selling the odd second hand item. They will seek out people who are trading. There are many such on eBay. Genuine tax avoidance is not illegal MissInterpreted. Tax evasion is.

Yes, I do understand the distinction, and as I say, I'm certainly not condoning tax evasion.

nanna8

Sell through Facebook instead? Lots of other ways apart from the rather over priced eBay.

Unless you are dealing in exclusively cash it will be recorded on your bank, credit card, PayPal or any other payment system.

That will be monitored too.

Sell through Facebook instead? Lots of other ways apart from the rather over priced eBay.

They will not be going after people selling the odd second hand item. They will seek out people who are trading. There are many such on eBay. Genuine tax avoidance is not illegal MissInterpreted. Tax evasion is.

I'm not condoning tax evasion, but this seems like an easy target. Going after people selling the odd secondhand item (rather than those running businesses doing so) while there are multimillionaires sitting back and laughing while they count the profits from their tax 'avoidance' schemes.

buy cheap, sell high= profit and yes should be taxed

I had an ebay shop a long time ago and declared the income to the tax man but then I am honest and never had any reason to hide behind the door

Selling personal possessions does not normally attract tax, there are exceptions, art and antiques is one that would attract CGT, others too.
It’s easy to identify those that are selling commercially using EBay to make money, catching up with them is another matter because they disappear and set up another account and carry on. It’s far too easy to set up a company in the UK.

I think that if people are buying and selling they should pay tax, as that is no different from running a shop. Someone selling their own possessions to raise money is rather different though, but I’m not sure how eBay or HMRC will know the difference.

Gwyllt I am in total agreement

If someone generates an income they should pay tax just like anyone with a job or a pension
A tax payer will ultimately have to pay more to cover those who don’t contribute to the costs of society

Well that’s good to know. So the taxman won’t be after us for selling my mum’s wheelchair and walker on eBay. I think we sold them for less than £100 for the two. I’ve never sold anything else on eBay. I’m glad someone else can have the benefit of them.

maddyone

I thought it meant that a seller would be taxed on their earnings from selling on eBay. However if the items sold are secondhand, how would the earnings be calculated?

If you are genuinely selling your own property then there should be no tax to pay, unless you discover that you have a Constable in your attic in which case you would have to pay CGT.

I'm sure a lot of people will be quite worried, especially people who have been selling and making profit for years, Ebay will have records going back for years and years so if the Tax man cometh!

Germanshepherdsmum

It’s not ‘stingy’ or ‘controlling’, OP. A lot of people make a lot of money selling on sites such as eBay and don’t declare it. If everyone paid the correct tax we would be much better off. Not declaring all your income, from whatever source, is tax evasion - a criminal offence.

This, agreed 100%. I know several people who do this as early retirees, and pay no tax.