Ebay, HMRC and Tax on sales?

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kiyamr2
kiyamr2 Posts: 88 Forumite
in Ebay, auctions, car boot sales, post & parcels
Please can some one one answer this question.

I have asked this question twice on Ebay chat just for claification, but not getting a definate answer.

HMRC State.....If I buy items to sell... I am a business.

I have asked Ebay and they say I can stay as a private seller but if selling picks up I should upgrade to a shop.

I do not expect to make £1000 a year, where do I stand with HMRC and Tax?

Thank you.
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  • soolin
    soolin Posts: 72,207 Ambassador
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    kiyamr2 wrote: »
    Please can some one one answer this question.

    I have asked this question twice on Ebay chat just for claification, but not getting a definate answer.

    HMRC State.....If I buy items to sell... I am a business.

    I have asked Ebay and they say I can stay as a private seller but if selling picks up I should upgrade to a shop.

    I do not expect to make £1000 a year, where do I stand with HMRC and Tax?

    Thank you.

    Ignore eBay, they tend to work to a US script and the rules are completely different.

    If you buy to sell then you need to use a business account on eBay and follow all the requirements regarding return policies etc. You are also liable for any tax, assuming your profit is sufficient to exceed any personal allowances you have left after other income.

    As for a shop, you do not need one, for small business sellers selling a handful of items is cheaper when you pay to,list, a shop incurs an upfront fee which is un necessary. If you use eBay help it shows you the point at which a shop becomes viable, from memory it's at about 60 BIN listings a month.
    I’m a Forum Ambassador and I support the Forum Team on the eBay, Auctions, Car Boot & Jumble Sales, Boost Your Income, Praise, Vents & Warnings, Overseas Holidays & Travel Planning , UK Holidays, Days Out & Entertainments boards. If you need any help on these boards, do let me know.. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.All views are my own and not the official line of MoneySavingExpert.
  • kiyamr2
    kiyamr2 Posts: 88 Forumite
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    I can't see myself selling on Ebay for much longer, I am not making a huge profit, and as for Tax, well who knows what that could be.
  • martindow
    martindow Posts: 10,218 Forumite
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    kiyamr2 wrote: »
    I can't see myself selling on Ebay for much longer, I am not making a huge profit, and as for Tax, well who knows what that could be.
    Well if you are not making much profit you will not be liable for much tax. Really, you should have a good idea if you are properly recording your income and expenses.
  • kiyamr2
    kiyamr2 Posts: 88 Forumite
    edited 18 March 2018 at 5:38PM
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    https://jf-financial.co.uk/2018/01/01/1000-tax-free-trading-allowance/

    So the £1000 per year is in effect once more after it was rescinded.
  • Dox
    Dox Posts: 3,116 Forumite
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    soolin wrote: »
    If you buy to sell then you need to use a business account on eBay and follow all the requirements regarding return policies etc.

    I'm sure this is technically correct, but there are vast numbers of 'private' sellers on ebay who have cheerfully ignored it without difficulty! If a buyer doesn't want to buy from a private seller, they can move on to the greater protections offered by buying from someone registered with ebay as a business seller.
  • forgotmyname
    forgotmyname Posts: 32,554 Forumite
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    Just takes one buyer to inform the tax man. Or for the seller to be unlucky and get on the list to be pulled up.

    Several threads over the years where hobby sellers are shocked to get a tax bill, or ask for accounts for their ebay business (hobby).
    Censorship Reigns Supreme in Troll City...

  • Techno
    Techno Posts: 1,169 Forumite
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    I am one of those sellers who sells gifts and things which I bought, thinking I would use then they end up in a drawer or cupboard, and never used. I have two or three 'clear outs' a year (usually when OH threatens divorce because of the clutter). Sometimes I make a profit but more often not or just covers what I bought the item for. How do you prove that you are not a business in my case or would it be obvious?
    ;) If you think you are too small to make a difference, try getting in bed with a mosquito!
  • bris
    bris Posts: 10,548 Forumite
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    kiyamr2 wrote: »
    I can't see myself selling on Ebay for much longer, I am not making a huge profit, and as for Tax, well who knows what that could be.
    Your accountant.


    Bottom line is you sell for profit, it's a business and the tax man couldn't care less what status your Ebay account has.


    HMRC do check Ebay sellers, they have a team looking for sellers like you.
  • forgotmyname
    forgotmyname Posts: 32,554 Forumite
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    You dont need to sell at a profit to be a business though. To be successful yes. But plenty out there selling for too little.
    Censorship Reigns Supreme in Troll City...

  • forgotmyname
    forgotmyname Posts: 32,554 Forumite
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    Techno wrote: »
    I am one of those sellers who sells gifts and things which I bought, thinking I would use then they end up in a drawer or cupboard, and never used. I have two or three 'clear outs' a year (usually when OH threatens divorce because of the clutter). Sometimes I make a profit but more often not or just covers what I bought the item for. How do you prove that you are not a business in my case or would it be obvious?


    Depends how you list the items, lots of new items? That would get me asking questions if you were playing the private seller card and refusing to refund.

    Customer complaining or someone you know being jealous of you earning money on the side and not declaring it.
    Censorship Reigns Supreme in Troll City...

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