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cash from ebay and tax credits!

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Hi all,
I am a stay at home mum with a toddler and my husband works full time but is on a low wage so we get tax credits. My question is... I am going to sell some of our excess belongings and kiddie clothes on e-bay should I declare any money I make to the IR? I'm not planning on earning a fourtune but I dont want to get in trouble!
Can anyone help please?
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Comments

  • Ted_Hutchinson
    Ted_Hutchinson Posts: 7,142 Forumite
    I am aware that the DWP monitor Ebay and check on the identities of people who appear to be running businesses while claiming means tested benefits. As Government departments share information it is likely that if you were running a business the profit would need to be declared as the Inland Revenue would eventually trace your activities.

    However there is a difference between selling off a few personal items and buying stuff, making stuff with the intention of selling it. Getting money from your own clothes, records, outgrown childrens stuff is comletely different and in my opinion you would not need to declare this type of dealing. You sellers record would show if you were repeatedly selling the same type of item that you must be buying in stuff for the purpose of selling it on. That is trading, if all the stuff you sell is just as you say, your own surplus items then the pattern of trading won't be the same as if you were a dealer.

    If over a few months I put my cd/book collection on ebay for sale it would show as perhaps a 100 individuals small sales but each item would be different, if the 100 sales comprised of lots copies of a few cds or books then it wouldn't take much to work out that I was dealing. There may be an activity level above which they take a particular interest. Perhaps someone here is better informed at what point the IR begin to take notice.
    My weight loss following Doktor Dahlqvist' Dietary Program
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  • sunsetgirl
    sunsetgirl Posts: 78 Forumite
    Thanks Ted!
    I wont worry about flogging the baby gear now!
    Cheers
  • you could always say that instead of donating the clothesto charity you were selling them and donating some cash instead.

    you know what they say - charity begins at home !

    good luck anyway
  • the only income tax credits is interested in is paid work (s.e or paye), taxable s.s benefits and "other income", usually dividends from shares, rent from property, interest from savings (first £300 in year is exempt). any money you make by selleng goods on ebay is of no interest
    fatblokexl
    :EasterBun:
  • Fran
    Fran Posts: 11,280 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    fatblokexl wrote:
    the only income tax credits is interested in is paid work (s.e or paye), taxable s.s benefits and "other income", usually dividends from shares, rent from property, interest from savings (first £300 in year is exempt). any money you make by selleng goods on ebay is of no interest
    A dealer is/should surely be self employed if they are earning a fair amount from ebay sales? They would be expected to pay tax if this was a regular income, so I would guess that IR would be very interested. :confused:
    Torgwen.......... :) ...........
  • sorry to put this

    but if voluntry driving is taxable then i'm sure mr brown will want to get his claws in to e-bay

    there is talk of taxing on car boot sales to.
  • rainee
    rainee Posts: 454 Forumite
    next thing it will be taxing jumble sales
  • LISAM696969
    LISAM696969 Posts: 45 Forumite
    Voluntary Driving Is Not Voluntary , You Do Not Pay For Insurance For The Passengers You Carry , So If An Accident Occurs There Is No Public Liability And You Get Paid Over 33p Per Mile It Only Costs 12p Per Mile In Fuel So What Is The Rest For , And Also If It Is Volutary Then You Shouldn't Get Paid At All , Some People Are Trying To Make A Living From These Voluntary Car Schemes And I Know Several People Who Do , It Is Very Wrong , Voluntary Is Voluntary Not Oh Well Just Pay Me And It'll Be Fine !!!!
  • Hapless_2
    Hapless_2 Posts: 2,619 Forumite
    Voluntary Driving Is Not Voluntary , You Do Not Pay For Insurance For The Passengers You Carry , So If An Accident Occurs There Is No Public Liability And You Get Paid Over 33p Per Mile It Only Costs 12p Per Mile In Fuel So What Is The Rest For , And Also If It Is Volutary Then You Shouldn't Get Paid At All , Some People Are Trying To Make A Living From These Voluntary Car Schemes And I Know Several People Who Do , It Is Very Wrong , Voluntary Is Voluntary Not Oh Well Just Pay Me And It'll Be Fine !!!!

    33p per mile? You will find that varies from area to area. Plus the mileage allowance has to cover the extra cost of car insurance (as you have to inform your insurers and it does add cost to the policy), wear and tear and fuel, it is not a wage. Fuel costs are immediately higher if you have to keep stopping and starting the car. I take it that if you needed an ambulace car to take you to the nearest Oncology unit which in many cases is 50 miles each way you would expect the driver to pay for the fuel out of their own pocket? Plus the extra insurance, the wear on their tyres etc? The mileage is for EXPENSES.

    What's with the capitals for every word?
    The "Bloodlust" Clique - Morally equal to all. Member 10
    grocery challenge...Budget £420

    Wk 1 £27.10
    Wk 2 £78.06
    Wk 3 £163.06
    Wk 4
  • Hapless_2
    Hapless_2 Posts: 2,619 Forumite
    donnalove wrote: »
    sorry to put this

    but if voluntry driving is taxable then i'm sure mr brown will want to get his claws in to e-bay

    there is talk of taxing on car boot sales to.

    Inland revenue and benefits officers already patrol the car boot sales down here.
    The "Bloodlust" Clique - Morally equal to all. Member 10
    grocery challenge...Budget £420

    Wk 1 £27.10
    Wk 2 £78.06
    Wk 3 £163.06
    Wk 4
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