Can I be taxed?

peterb55

I so get what Martin says about selling off old stuff to boost income, it makes so much sense.

As an OAP I end up with about £3 per day to survive after all bills and rent and past debts (sillyness with the credit card) are paid each month.
So, now I'm retired I find I have a lifetime of 'stuff' and I want to sell off most to; a) boost my bank account so I can live slightly more comfortably, b) create a small war chest so maybe I can have a holiday (last one was 1989), c) save for my own funeral.
IF I'm selling 'stuff' I bought over the years (can't remember what I paid for it, going to make a loss) the returns will be used for food and day to day essentials..... as an OAP on State Pension and Housing Benefit WHAT do I have to declare and to whom?

I'd appreciate any advice here before I start downsizing my life.

Pollycat

Maybe these articles will help:

https://www.thisismoney.co.uk/money/experts/article-2671967/Do-I-pay-tax-selling-eBay-I-auction-personal-items-going-Im-thinking-taking-seriously.html

https://www.thisismoney.co.uk/money/experts/article-2671967/Do-I-pay-tax-selling-eBay-I-auction-personal-items-going-Im-thinking-taking-seriously.html

I'd Google a few more and read them too.

Off-topic - but are you sure you are getting all the benefits you are entitled to?

tacpot12

If you are only selling stuff you already own, then there is no way that this should be regarded as income by HMRC - you paid tax on the income you used to buy these items in the first place!

The article above suggest that selling your own stuff regularly might lead HMRC to regard this as income, but I would suggest that you should fight any such suggestion from HMRC vigorously, e.g. complain in writing to HMRC and complain to your MP, and involve the media.

HMRC should accept your evidence that you are not trading, this evidence being your bank statements that show you only buy necessities, not stock to sell.

MandM90

Are you planning on selling anything worth thousands, or on buying things with a view to sell them? If the answer to both is no then from what I've read you have no cause to worry.

On another note, if you're that hard up I'd sod saving for the funeral and concentrate on the credit card debts and holidays!

PipneyJane

Small sales will not be taxable, so long as you can demonstrate that you aren't "trading"/running a business (so no buying stock specifically to sell). If you are selling your own belongings, then they are considered "Chattels" and are usually not taxable.

However, if you sell something like a valuable antique, then you may end up paying Capital Gains Tax IF the profit on the sale exceeds the CGT allowance. (Is it still £10k?)

HTH.

-Pip

-taff

You dn'thave to declare anything as long as you're selling things you own off, like household stuff, books etc, unles you're running it as a business.
I would also recommend going to the debt free wannabe board and posting an SOA so the nice people there could potentially suggest savings in plaes, along wih help with debts, such as, have you requested CCA's, have ou complained about any PPI etc etc.

maman

That's right about selling your own belongings.


In any event, if you have a low income then you wouldn't reach the tax threshold until your income was £12 500.

VfM4meplse

peterb55 wrote: »

As an OAP I end up with about £3 per day to survive after all bills and rent and past debts (sillyness with the credit card) are paid each month.

£21 pw is just ridiculous, even if you don't need "stuff", you still need consumables and rainy day money. With your level of income, taxation really should be the last thing on your mind.

Farway

VfM4meplse wrote: »

£21 pw is just ridiculous, even if you don't need "stuff", you still need consumables and rainy day money. With your level of income, taxation really should be the last thing on your mind.

There is also the Housing Benefit he claims, I've no idea at what income level this can be claimed, but he surely does not want to get involved in inadvertently falling foul of breaching this level

Pollycat

Farway wrote: »

There is also the Housing Benefit he claims, I've no idea at what income level this can be claimed, but he surely does not want to get involved in inadvertently falling foul of breaching this level

My Mum is eligible for housing benefit as her savings are below the threshold.
I think if you are in receipt of guaranteed pension credit you can apply for housing benefit.