Telling Inland Revenue about selling on ebay

PM

Im just wondering I am seeling fairly regularly 2 or so items a week on ebay, would i need to tell Tax department about this, ??? I hope not, but i thought i should find out

thanks

tru

If you buy to sell, then yes. If your just selling your old stuff, then no

Rex_Mundi

I seem to remember reading somewhere that if you sell under £8000 of goods on Ebay in a year, you don't have to worry about the taxman. I don't know wether this means that Ebay will inform the taxman, or wether you have to declare it if you go over this amount.

VH

Yes you should inform the taxman if you are running a business and you are an honest taxpayer.

In case the taxman is listening, I am not condoning tax evasion at all. But to be perfectly honest the taxman is not going to come chasing you if you are selling a couple of items a week. He is more interested Mr. Powerseller who is shifting a grands plus worth of stuff a month and not declaring it.

I can't remember what the tax allowance is for self employed, I think it's £4,745, any accountants please correct me if I'm wrong.

payless

I can't remember what the tax allowance is for self employed, I think it's £4,745, any accountants please correct me if I'm wrong.

Put isf employed already earning above personal allowance, profit from any business ( ebay, affiliate marketing etc is taxable )

George_Bray

I seem to remember reading somewhere that if you sell under £8000 of goods on Ebay in a year, you don't have to worry about the taxman. I don't know wether this means that Ebay will inform the taxman, or wether you have to declare it if you go over this amount.

I think this is incorrect. The law requires you to delare business income to the tax man even if it's only 50p per year. It's less costs of course. So if you sell goods for £2000 during the year (including what you charge for shipping) and have costs of £1500 (including what you actually pay for shipping), then you may pay tax on £500 if it's marginal extra income. You DEFINITELY need to register as self employed. National Insurance will be very interested too.

George_Bray

I can't remember what the tax allowance is for self employed, I think it's £4,745, any accountants please correct me if I'm wrong.

Yes, your personal annual tax allowance is somewhere in the region of £4745. But if you have a main job as an employee, then it will be used up for that, e.g. say you earn £14,745 as an employee, you will pay tax on £10,000 and Nat Ins on top. Then, say you earn £500 profit from eBay after all expenses. You must pay tax and NI on that too, with no personal allowance left to claim.

angelcake

I thought the tax was included in the ebay fees!? :-[

PM

well yes you do pay VAT in selling fees, but I belive you have to tell them if you are buying to sell onn ebay, so far im just selling stuff i dont want, unwanted presents, etc so ai dont think i need to say anyything, but in future say i do start to buy to sell I will inform the tax man.

thanks for your help everyone. ;D

angelcake

I was thinking of doing that in the future also and didn't have a clue about the taxman....so thanx everyone too!!

VH

The tax in EBay fees is only what sellers pay to EBay, e.g. VAT in the UK. This tax is nothing to do with profit you make on selling items - it is what EBay charge you to use their service.

You are required to pay tax on profit you make as a trader. I think I was correct in that you can earn £4745 before you pay any tax, but as people have pointed out, if you are already employed this will be used up, assuming you earn more than £4745.

A lot of traders operate part time businesses on EBay and do not pay a penny in tax. I strongly believe that it is only a matter of time before the Inland Revenue start prosecuting people for doing this - they must be losing a lot of money because of EBay traders who don't declare what they are doing.