Quick question about eBay

KingElvis

question has been answered. Thanks

Pembroke

The main difference between a private and a business seller is that a private seller has personally used the items they are selling.

If he has been collecting these items to run a server farm in his garage or as a collection of historic computers then that could be considered as private use but if he acquired them with the specific aim of selling them on then that's what Ebay (and HMRC)consider to be a business. 22% would only be on his profits.

KingElvis

Thanks for that, what if he's carted them home, tinkered with them etc and then just carted more home LOL

I don't think they were collected to sell as such but as he's moving house, they have to go and it's worth too much to throw away.

Should he just register as a business from the off?

moneydad25

He sounds very much like a chap I know who's into electronics. buys speakers and other electronics bits because 'they might be useful one day'. His wife got fed up with them all and demanded a clear out so he's been listing them on ebay. If your friend has kept the stuff in the same way I'd have thought it would be ok to sell them as a private seller, after all, it's not like he's gone and bought a job lot in order to sell them on and make a profit is it!

macfly

There's nothing to fear registering as a business on ebay. I would go ahead and list them, then change the account if ebay made you. The tax situation is a minefield. If the items were going to be chucked away, then it's the same as finding them and assuming ownership. They could then be treated as personal goods and no tax ensues. If they were a perk of the job, it could be argued they should have been taxed at the time. Unless you are looking at thousands, I would just sell them and say nothing.