offset ebay loss against paye tax?
Options
daxu
Posts: 181 Forumite
in Cutting tax
I started to buy and sell things on ebay recently.
For example: I bought 500£ things from ebay and other sources in one year.
I sold 250£ on ebay in a year.
The left over items are out of date and are unlikely to be sold. So in theory I made a loss of 250£?
If that is the case, can I offset it against my normal job's paye tax?
Also do I need to register as self employed to claim the loss?
Many Thanks
For example: I bought 500£ things from ebay and other sources in one year.
I sold 250£ on ebay in a year.
The left over items are out of date and are unlikely to be sold. So in theory I made a loss of 250£?
If that is the case, can I offset it against my normal job's paye tax?
Also do I need to register as self employed to claim the loss?
Many Thanks
0
Comments
-
Yes you do,need to register as s/e to claim a s/e loss
Did you put the other items up for sale?0 -
No, I didn't put them on ebay at all.
Thanks0 -
Your business profit/loss has nothing to do with your PAYE tax.
You cannot claim this against the tax in the daytime job.0 -
BonkersBonkers wrote: »Your business profit/loss has nothing to do with your PAYE tax.
You cannot claim this against the tax in the daytime job.
To a basic rate taxpayer a £250 trading loss is worth (250 @ 20%) £50 in your pocket.
If you register your business with HMRC now it is almost certain that you will be hit with a £100 fixed penalty for late registration. The fixed penalty is based on National Insurance legislation and will eventually be written off but, quite frankly, how much time it will take to be written off, how many threatening letters you will receive and how much time and money you spend writing to and phoning HMRC will be down to how you perceive that. Will it be water on a duck’s back or the system out to get you?
I would suggest that, rather than making a late registration, you write to HMRC along the lines that you have posted here. In HMRC’s terms a one-off £250 loss is peanuts and a human being could quite easily decide to allow the loss informally without all the hassle that claiming on-line will automatically generate.0 -
BonkersBonkers wrote: »Your business profit/loss has nothing to do with your PAYE tax.
You cannot claim this against the tax in the daytime job.
Actually these statements are correct.
But business losses whilst, in themselves, are nothing to do with PAYE tax, may be claimed as an allowable deduction from current and previous years income which has been subject to PAYE. This gives rise to an overpayment which will, of course, be refunded.
There are many hoops to be jumped through and many implications which should be thoroughly understood when claimimng losses, it is definitely a qualified tax persons job.The only thing that is constant is change.0 -
BonkersBonkers wrote: »Your business profit/loss has nothing to do with your PAYE tax.
Unless you wish to claim the loss against other income, this is correct.
You cannot claim this against the tax in the daytime job.
Completely wrong!
Where is the basis for so saying?0 -
nomunnofun wrote: »Where is the basis for so saying?
The point is you do not claim anything against tax, you claim it as a deduction against incomeThe only thing that is constant is change.0
This discussion has been closed.
Categories
- All Categories
- 343.3K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards