Ebay and Tax

LydiaSophia

Hi - Just need abit of advise. I am selling a few bits on ebay and my Mum told me I need to be careful about tax.......

Do I need to declare everything I sell?

isitenough

I'm pretty sure it works out that if you're just selling bits and bobs from around your house (personal posessions) then it's not a problem.
But if you're buying elsewhere to sell on then that's when the problem starts.
I'm sure someone who knows the ins & outs better will come along and advise.

LydiaSophia

Yes it is bits and bobs but I have had a major clear out and have sold about 150 things in the last two months - i havenm't made tons of money or anything - I didn't even give it a thought but after what my Mum said I thought I would just check.

Snooze_Control

You don't need to pay tax. It's all scare-mongering. :rolleyes:

SC

martindow

If it is odd items you are selling there is no liability for tax. As soon as you start buying things with a view to selling them on at a profit you are trading and should tell the tax people.

Contains_Mild_Peril

The quantities are irrelevant. You don't pay tax on sales of your personal possessions. If you were to sell items you bought for the purpose of reselling, you should declare those.

JohalaReewi

LydiaSophia wrote: »

Yes it is bits and bobs but I have had a major clear out and have sold about 150 things in the last two months - i haven't made tons of money or anything - I didn't even give it a thought but after what my Mum said I thought I would just check.

No problem if you are selling personal possesions. The only possible tax liability for selling your own stuff is capital gains tax. The basic rules are...

Most sorts of assets can lead to a CGT charge when you dispose of them, for example
* shares in a company
* units in a unit trust
* land and buildings (but see 'What about my home?')
* higher value jewellery, paintings, antiques and other personal effects (see next section)
* assets used in a business, such as goodwill.

Some assets are exempt. For example, you will not have to pay CGT on
* your private car
* cash held in sterling
* any foreign currency held for your own or your family's personal use
* jewellery, paintings, antiques and other personal effects that are individually worth £6,000 or less (if you have a set, for example a set of chess figures - you do not pay CGT if the value of the set as a whole is £6,000 or less)
* Savings Certificates, Premium Bonds and British Savings Bonds
* UK Government stocks ("Gilts")
* assets held in an Individual Savings Account (ISA) or Personal Equity Plan (PEP)
* betting, lottery or pools winnings
* personal injury compensation.

So you are unlikely to be liable for capital gains tax selling your old bits and bobs on ebay.

Quick guide here...
http://www.hmrc.gov.uk/leaflets/cgtfs1.htm

HM CGT website...
http://www.hmrc.gov.uk/cgt/index.htm

LydiaSophia

Thank you - you have put my mind at rest