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Tax on selling on ebay

Hi can someone tell me know how much can you earn a yr before getting taxed ?
Won 2010: Butlins 5 day Break and £250, 1 yr Virgin Active membership, Meal for 10 at Best Parties Ever, skyline 2011 dvd.

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  • soolin
    soolin Posts: 73,395 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You can earn nothing at all before being eligible for tax. Having said that though everyone has a personal allowance that depends on age and circumstances, if your total income from all sources is less than that then although you still need to declare your income it will not be taxed.

    Just remember that you need to declare self employment within 3 months of starting to trade.
    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.
  • chja
    chja Posts: 913 Forumite
    http://www.hmrc.gov.uk/index.htm is the place you need to be looking.

    Are you selling as a private seller or a business ?

    Technically, as a private seller you ought to pay tax on any gain on the item, once you have exceeded your personal allowance (through employment or other income), but in reallity HMRC is unlikely to go after you for this unless you are selling loads (in which case you are probably technically a business anyway).

    If you are a business, you need to get some proper advice (with all due respect, not from here) as you have VAT registration, corporation tax and potentially other legal and taxation issues to think about.
  • If you sell your own stuff then I don't think you pay any tax, as you've already paid full whack for the items anyway. Unless you buy from charity shops, keep it for a week then sell it on ebay. Grey area I s'pose...
  • livelyred
    livelyred Posts: 2,367 Forumite
    I dont have a business on ebay private seller just selling odds and ends picking bits up at boot fair and charity shops,i dont pay tax as i only work 5 hrs per wk.
    Won 2010: Butlins 5 day Break and £250, 1 yr Virgin Active membership, Meal for 10 at Best Parties Ever, skyline 2011 dvd.

    Surveys Tescos Home Panel,Boots,cint sample,Unex Royal Mail,Crowdolody,Valued opinions,Ayton,Buzz,Ayton,Consumer Pulse,Royal Mail Posting, pigsback.
  • pinkgem
    pinkgem Posts: 3,299 Forumite
    livelyred wrote: »
    I dont have a business on ebay private seller just selling odds and ends picking bits up at boot fair and charity shops,i dont pay tax as i only work 5 hrs per wk.

    if you are buying things from boot fairs and charity shops to re-sell then you are a business and you should be declaring your income
  • soolin
    soolin Posts: 73,395 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You are also not a private seller as per ebay rules, you are a business.
    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.
  • gymfiend
    gymfiend Posts: 1,296 Forumite
    As you're buying with the sole intention of selling on at profit [hopefully!!]: "just selling odds and ends picking bits up at boot fair and charity shops", you should declare yourself as self employed and switch to an eBay business account.

    Assuming you are under 65, your yearly tax free allowance for 08-09 is £6035, so you can make up to that point [including any other wages/income] before being eligible to pay tax.
    Baby Boy arrived March 25th 2010 - 17 days late & 8lb 10oz :j
  • livelyred
    livelyred Posts: 2,367 Forumite
    gymfiend wrote: »
    As you're buying with the sole intention of selling on at profit [hopefully!!]: "just selling odds and ends picking bits up at boot fair and charity shops", you should declare yourself as self employed and switch to an eBay business account.

    Assuming you are under 65, your yearly tax free allowance for 08-09 is £6035, so you can make up to that point [including any other wages/income] before being eligible to pay tax.
    i only work 5 hrs a wk so i dont get taxed i earn about £1600 a yr i sell i dont sell alot about 10 items a wk if im lucky,so how much do you have to earn in a yr to be taxed if its £6035 well i dont make that at all i think i made last yr up to now as i have only been selling for about 7 mths about £700 thats all.
    Won 2010: Butlins 5 day Break and £250, 1 yr Virgin Active membership, Meal for 10 at Best Parties Ever, skyline 2011 dvd.

    Surveys Tescos Home Panel,Boots,cint sample,Unex Royal Mail,Crowdolody,Valued opinions,Ayton,Buzz,Ayton,Consumer Pulse,Royal Mail Posting, pigsback.
  • soolin
    soolin Posts: 73,395 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You still need to declare it though, how ever little, you just won't be liable for any tax.

    Also don't forget any other taxable income like pensions, taxable benfits etc will use personal allowances as well.
    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.
  • livelyred
    livelyred Posts: 2,367 Forumite
    soolin wrote: »
    You still need to declare it though, how ever little, you just won't be liable for any tax.

    Also don't forget any other taxable income like pensions, taxable benfits etc will use personal allowances as well.
    So how do you delare it and if i dont what happens ?
    Won 2010: Butlins 5 day Break and £250, 1 yr Virgin Active membership, Meal for 10 at Best Parties Ever, skyline 2011 dvd.

    Surveys Tescos Home Panel,Boots,cint sample,Unex Royal Mail,Crowdolody,Valued opinions,Ayton,Buzz,Ayton,Consumer Pulse,Royal Mail Posting, pigsback.
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