Buying and selling

sjh101

Hi

Is it illegal to buy something in bulk from a store (5 items), and then sell online to hopefully make a profit?

I’ve had a recent transaction where a winning bidder didn’t pay despite numerous messages. I cancelled the order which they weren’t happy about and left negative feedback.

They then sent a message saying that they work for trading standards and that my details have been passed over to the authorities, as its illegal to buy goods with the intention of selling them on for financial gain. Expect to hear from them soon. They obviously saw my other items for sale on eBay.

Surely once I buy something from a store, no matter how many I buy, it’s mine, and I can do whatever I like with them.

Can someone shed some light on this please. Thanks

davidmcn

sjh101 wrote: »

its illegal to buy goods with the intention of selling them on for financial gain

You could try explaining to them that's how shops work.

Or you could just ignore them since they're obviously a bit potty.

waamo

Is it illegal to buy something cheap and sell it for a profit? Have you ever heard of a system called capitalism? It's a system we have adopted.

Diamandis

If you buy items for the sole purpose of reselling on eBay then you need to be registered as a business seller on eBay.

CKhalvashi

Diamandis wrote: »

If you buy items for the sole purpose of reselling on eBay then you need to be registered as a business seller on eBay.

This is correct.

There is a limited amount of leeway time-wise on this, but you also need to register with HMRC.

You must register by 5 October in the second year of the business however it's advisable to do this as soon as possible.

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

LilElvis

CKhalvashi wrote: »

This is correct.

There is a limited amount of leeway time-wise on this, but you also need to register with HMRC.

You must register by 5 October in the second year of the business however it's advisable to do this as soon as possible.

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

Only necessary if he earns more than £1,000 from his self employment, which he may not do if it only amounts to the sale of five items.

unholyangel

LilElvis wrote: »

Only necessary if he earns more than £1,000 from his self employment, which he may not do if it only amounts to the sale of five items.

I read that as an example of how many of 1 item OP is buying rather than how many items they're selling.

But 5 items could easily go over the £1000 turnover limit depending on what the items are (ie phones, tvs etc).

CKhalvashi

unholyangel wrote: »

I read that as an example of how many of 1 item OP is buying rather than how many items they're selling.

But 5 items could easily go over the £1000 turnover limit depending on what the items are (ie phones, tvs etc).

I'd rightly or wrongly made that assumption too, as is probably evident from how I'd posted.

Jumblebumble

sjh101 wrote: »

Hi

Is it illegal to buy something in bulk from a store (5 items), and then sell online to hopefully make a profit?

I’ve had a recent transaction where a winning bidder didn’t pay despite numerous messages. I cancelled the order which they weren’t happy about and left negative feedback.

They then sent a message saying that they work for trading standards and that my details have been passed over to the authorities, as its illegal to buy goods with the intention of selling them on for financial gain. Expect to hear from them soon. They obviously saw my other items for sale on eBay.

Surely once I buy something from a store, no matter how many I buy, it’s mine, and I can do whatever I like with them.

Can someone shed some light on this please. Thanks

Perhaps tell them that you will report them to trading standards for not completing their contractual obligations as TS will take as much interest in this as anyone to whom the OP is reported
Thank them politely for their legal advice but suggest that you prefer to use someone who knows what they are talking about .
Then ignore

sjh101

Thanks for the responses.

The items are selling for between 35 and 45/50ish so it wouldn’t be anywhere near the threshold of £1000. It’s literally once the items sell that’s it. There are actually 10 in total but I’ve already sold 5. I’m not going to carry on buying and selling after they have been sold.

Do you thinks it’s worth contacting HMRC just to explain so that they are aware?

Thanks again

soolin

sjh101 wrote: »

Hi

Is it illegal to buy something in bulk from a store (5 items), and then sell online to hopefully make a profit?

I’ve had a recent transaction where a winning bidder didn’t pay despite numerous messages. I cancelled the order which they weren’t happy about and left negative feedback.

They then sent a message saying that they work for trading standards and that my details have been passed over to the authorities, as its illegal to buy goods with the intention of selling them on for financial gain. Expect to hear from them soon. They obviously saw my other items for sale on eBay.

Surely once I buy something from a store, no matter how many I buy, it’s mine, and I can do whatever I like with them.

Can someone shed some light on this please. Thanks

Firstly, if you have left the buyer negative feedback then this wasn't sold on ebay, if it had been then I hope you went through the proper NPB system and didn't just cancel.

As above though buying cheap and selling on is a legitimate business model , I do it myself and some of my stock does actually come from the High street. This is not illegal- the only issue is that some companies prohibit the re selling of branded goods unless you are a licensed re seller and hold a contract with them- but if that were the case it would be the company complaining to you and not a buyer or trading standards.

Also as above if selling as a business on ebay or anywhere online you need legally to declare yourself as such and have proper return policies and display a geographic address, not doing so might be of interest to Trading standards. The other issue about HMRC is a separate issue , you would still need to comply with the legal requirements of an online business but if your yearly turnover (and NOT profit) is over £1000, and that is from all sources, so even if your selling is under £1000 you would need to declare it if you have other self employed income that totals over £1000. The full link is here:
https://forums.moneysavingexpert.com/discussion/6070793/1000-trading-allowance-is-made-clear-on-tax-return