Taxes on eBay sales

AceCobra1

Hi guys,

I was just wondering, if I were making money on ebay as a something on the side, how much tax allowance do I get? Does it come from my personal tax allowance or does it have a separate allowance from capital gains or something?

RFW

AceCobra1 wrote: »

Hi guys,

I was just wondering, if I were making money on ebay as a something on the side, how much tax allowance do I get? Does it come from my personal tax allowance or does it have a separate allowance from capital gains or something?

You'd need to register as self employed. HMRC would give you advice as to how it would work for your circumstances.

mrcol1000

As above you would need to register as self employed if you are buying or making things to sell on Ebay. Even if it was just a part-time thing.

It would probably come out of your personal tax allowance. So any profit you made would be taxed along with any wages minus your personal tax allowance. You would of course be able to offset your expenses such as stock, postage, packaging etc... You can also claim for millage and working from home.

HMRC website has some info. You can also ask them simple general questions on Twitter at https://twitter.com/hmrcbusiness It seems daunting but once you get into it and if you aren't earning enough to have to deal with VAT (£80k +) and only really buying and selling things, not really that bad.

AceCobra1

mrcol1000 wrote: »

if you aren't earning enough to have to deal with VAT (£80k +)

I am slight confused. What did you mean by not earning enough to have to deal with VAT? I am just looking to start a small business as a 2ndary source of income so to my knowledege, when it is imported, I am due to pay duty + VAT. Do I pay VAT again when I sell an item? I doubt I would be selling £8k let alone £80k for 1 year! :eek:

TKPeters

If your turnover was more than £81K in any 12month period, then you would also have to reg'd for VAT.
Your prices would include VAT & you would then pay the 20% VAT collected back to the HMRC, less any purchases etc where you paid VAT on them.

RFW

It's also worth looking at your local council website or library to see of business support groups in your area. There are lots of free workshops/events for start ups.

If you do it properly there could be funding available too.

Brooker_Dave

AceCobra1 wrote: »

Hi guys,

I was just wondering, if I were making money on ebay as a something on the side, how much tax allowance do I get? Does it come from my personal tax allowance or does it have a separate allowance from capital gains or something?

Is it your own stuff or stuff you are buying to sell on?

Brooker_Dave

AceCobra1 wrote: »

I am slight confused. What did you mean by not earning enough to have to deal with VAT? I am just looking to start a small business as a 2ndary source of income so to my knowledege, when it is imported, I am due to pay duty + VAT. Do I pay VAT again when I sell an item? I doubt I would be selling £8k let alone £80k for 1 year! :eek:

Your best bet is to talk to an accountant, most offer a free initial meeting, they will be able to advise you on the best way to move forward.

martindow

Are you already employed? If you are you and are over the personal tax allowance all profits from your business will be taxed at your tax rate.

If you are claiming benefits they may be affected by self employment income.