Friend Ripped off on E-Bay

ffacoffipawb

So he got his revenge.

He printed a list of all the seller's items that sold.

He printed off the seller's name and address.

And he posted them to the Inland Revenue.

Given the hundreds of items this person sold for £1 - £5 plus postage, and I mean HUNDREDS, he will have fun computing his tax liability to the Inland Revenue.

alanobrien

Classic............Love it :-)

Mr_T_5

I don't think you need to pay any income tax on things you are selling on ebay if they are your own items and you are not a company... please correct me if im wrong.

LD

wrong, whilst the revenue aren't worried about 'odd' stuff, if someone is making a regular income buying and selling that could attrct either income tax or capitial gains

robnye

LD wrote:

wrong, whilst the revenue aren't worried about 'odd' stuff, if someone is making a regular income buying and selling that could attrct either income tax or capitial gains

how much constitutes a regular income ...... £5, £10, £50 ?

soolin

robnye wrote:

how much constitutes a regular income ...... £5, £10, £50 ?

It's not the amount of income earned it is whether or not you are trading.

As has been said before selling old things you have lying around the house is fine, whatever money they bring. However, going out and buying things especially for sale, at whatever price, is trading and should be declared to the IR.

Soo

robnye

my house is so tidy no,

i didnt realise i had so much clutter when i started 18 months ago, although at least twice as much has gone to local charities.

you do sometimes have to question the mentality of some of the people buying and selling on ebay!!!!! Some items are rather wierd/strange!
mind you i have found some obscure bits which i couldnt find any where else, ie bits for furniture etc

madsamuri

soolin wrote:

It's not the amount of income earned it is whether or not you are trading.

As has been said before selling old things you have lying around the house is fine, whatever money they bring. However, going out and buying things especially for sale, at whatever price, is trading and should be declared to the IR.

Soo

correct, but there are ways and means, heres one suggestion.

the guy says he sold everything at a loss, so therfore made no income on the produce sold, so no income tax or n.i to pay.

chillipepper_3

madsamuri wrote:

correct, but there are ways and means, heres one suggestion.

the guy says he sold everything at a loss, so therfore made no income on the produce sold, so no income tax or n.i to pay.

Good thinking batman but If this was to happen he would have to offer proof as to the purchase price at which he acquired each item sold.

Or am i wrong??

soolin

The Inland revenue don't require proof of everything from everyone, they randomnly audit a certain, small percentage of accounts. This is one reason why they don't chase ebay users as much as might be expected, anyone that can show a loss after taking into account all expenses would be entitled to offset that loss against other income.

Soo

culpepper

He would need to keep all his receipts and proofs of postage plus any petrol receipts,paper costs for letters,ink cartridge receipts for printing labels etc.
Thats what I would do if I was using ebay as a business.