Selling my own stuff on ebay - do I need to declare it as income?

PrincessJR

Hi,

I work part time and so already exceed my tax limit per year (so pay income tax via PAYE)

I have a VERY large collection of dolls (were talking hundreds) and as we desperately need space I have decided to begin the long winded process of photographing them all to sell on ebay.

My question is, do I need to declare any money I get from sales for tax purposes? They are quite valuable (some around £30 some as much as £100). If Im only managing to get a few on each week, will this look dodgy? Like regular extra income?

I would put them on as a job lot but I know I wont get what they're really worth that way.

Is there a limit in £££ that you can earn via these means before it counts?

HappyMJ

No need to declare the income from any used stuff no matter how much it is.

If you were to buy stuff for the sole intention to resell it on Ebay without using it...such as buying a job lot of 1,000 of an item and you sell them individually then you should declare the profit as income.

PrincessJR

thanks for the reply. I was worried I may look like a doll dealer! :-)
Yeah, the dolls are ones Ive had for years, either bought myself, or gifts.
I have a Facebook page also relating to dolls as they are a hobby of mine, but its just a personal page, although I did post a link on there to a doll I was selling on ebay as people were interested. This wouldnt make me look like a dealer would it?
Its such a grey area I dont want to get in trouble!

PrincessJR

By the way, as the dolls are quite collectable, I did think about setting up a basic website so that people could read about them, see photos etc, and get links to ebay but if I do this, will it then be classed as a business? Even though they are my own dolls?

gb12345

PrincessJR wrote: »

By the way, as the dolls are quite collectable, I did think about setting up a basic website so that people could read about them, see photos etc, and get links to ebay but if I do this, will it then be classed as a business? Even though they are my own dolls?

Having a personal website giving details wouldn't be a problem - lots of people have websites about their hobbies.

What I'm not so sure about is what would happen if you started actively advertising them on the website as being for sale. HMRC could take an interest in you and decide that you are a trader, which could result in you having to prove that you are selling items you have owned personally and not bought to sell on.

PrincessJR

thanks for the reply.

I might not mention the fact that they are for sale on the website then, and just show photos and give details about them.
Hmm, seems a bit of a grey area.

Any other advice appreciated

PrincessJR

gb12345 wrote: »

Having a personal website giving details wouldn't be a problem - lots of people have websites about their hobbies.

What I'm not so sure about is what would happen if you started actively advertising them on the website as being for sale. HMRC could take an interest in you and decide that you are a trader, which could result in you having to prove that you are selling items you have owned personally and not bought to sell on.

Thanks. I understand what youre saying. But if HMRC did take an interest and ask me to prove that I hadnt recently bought the dolls to sell them on, how might they expect me to do that? (prove they were my dolls) As Ive collected them over a number of years, (bday/xmas gifts mainly) I have no receipts or anything like that? They are just my dolls?

gb12345

PrincessJR wrote: »

Thanks. I understand what youre saying. But if HMRC did take an interest and ask me to prove that I hadnt recently bought the dolls to sell them on, how might they expect me to do that? (prove they were my dolls) As Ive collected them over a number of years, (bday/xmas gifts mainly) I have no receipts or anything like that? They are just my dolls?

I don't know is the honest answer as I've never been in that position.

You could try posting in the eBay board and see if anyone in there has been in a similar position selling their own stuff.

PrincessJR

thanks I iwll do that good idea.

Need to be sure, as it wont be worth the hassle if I get into trouble and end up owing a load of tax! Do HMRC also fine if they decide you should have been paying tax?

thriftylass

http://www.hmrc.gov.uk/guidance/selling/examples.htm

You probably come in as example number two, you found some of your own old stuff and sell it on. I would maybe not advertise as such as specialised listings like collectible dolls etc attract enough attention to buyers by themselves. You're not trading hence are not liable for tax. Unless you make stuff or buy stuff to resell you don't have to worry. Just clearly mark your ebay listings as used and maybe add a wee line about how they were treasured by you for years etc....