Do I need to declare tax on things I sell on ebay?

mlarmour

I am having a clear out as I have some things that I no longer need and want to get rid of as well as selling some things that I have made. I want to do it on Ebay as I think it is the best way to do it. I was just wondering if I need to declare tax on it or not. I am currently unemployed if that makes any difference.

ms_night_ryder

Yes you do, especially if you are selling things you have made, that is effectively a business.

fragmented

my understanding is if you are selling old things you own that you no longer want, then no.

if you are buying, making, stealing, growing, selling things for others, etc ... to sell then yes.

Al1x

fragmented wrote: »

my understanding is if you are selling old things you own that you no longer want, then no.

if you are buying, making, stealing, growing, selling things for others, etc ... to sell then yes.

That's what I though too. If you are doing it as a business then you have to pay tax but if you are just selling your own old stuff then you don't pay tax.

soolin

I sell both my unwanted things and things as a business in eBay and other outlets and pay tax on the business element of my sales. On eBay your home made items you are selling should be on a business account and you would need to comply with business rules, the easiest way is to have 2 accounts, one private and one business and keep them apart.

antrobus

mlarmour wrote: »

I am having a clear out as I have some things that I no longer need and want to get rid of as well as selling some things that I have made. I want to do it on Ebay as I think it is the best way to do it. I was just wondering if I need to declare tax on it or not. I am currently unemployed if that makes any difference.

Selling stuff that you already own on eBay (or anywhere else for that matter) does not constitute running a business and does not generate a liability for tax. Selling stuff that you have made your self might appear to be different, but isn't really.

For one thing, you have to remember that tax is only payable by a business if you actually make a profit i.e. you sell things for more than you paid for them. Do you actually anticipate selling the things that you have made for more than it cost you to make them?

For another thing, selling the the things that you have made would only constitute a business if you made them with the intention of selling them at a profit.

How much money are you talking about? If you're only talking about the odd fiver or tenner here and there, HMRC will simply not be interested in what you're doing.

ms_night_ryder

Sorry but if you are selling stuff you have made you need to register as self employed. Within 3 months. You are a business.

InsideInsurance

Selling your clutter you dont need to pay tax as you are just liquidating your assets

Selling products you have made to sell is a business and so tax has to be paid, though the materials to make them etc can be deducted as a legitimate business cost.

Its unclear from the original post if these items were made with the intent to sell or if they were simply made, used and now being sold as secondhand in which case the fact the OP created them would be irrelevant

mlarmour

I haven't made them to sell. Its just pieces are art that I did when I was in college but think they are too nice to throw out. I just have no room to keep them.
Thank you for all the responses.

MysteryMe

I don't consider that to be a business enterprise in those circumstances. It's the same as if you made a bookcase 10 years ago and then decide to sell. It's a different matter if you are selling artworks you have just produced and in effect brand new.

LittleVoice

ms_night_ryder wrote: »

Sorry but if you are selling stuff you have made you need to register as self employed. Within 3 months. You are a business.

Where do you get that "3 months" fact?

Though HMRC encourage early registration, I believe the latest time to register is by 5 October after the end of the tax year for which you need a tax return. So if the OP were actually trading (which does not now appear to be the case) they would need to register by 5 October 2015.

I await correction.