Will selling inherited items on eBay affect Universal Credit?

VertDeFerk

Hey all, bit of advice required with a complex situation regarding a claim for UC. Requires a bit of context, but I'll stay as concise as possible.

I'm a single divorcee, no children or siblings and live in a council rented property. I lost my Dad 18 months ago and inherited a hoarder's paradise of cds/vinyl/collectable books, old programmes and magazines that has taken me about a year to make sense of and find new homes for the majority of.

I was dismissed from my job just before the pandemic and have survived on selling the items I inherited on Ebay. I'm still well within my annual capital gains allowance and have been applying for jobs, but I'm about a month away from not being able to cover my rent or bills and ending up in debt. I'm set to apply for universal credit whilst I continue to search for employment.

I have approximately 200 items listed worth approx £3,000 (plus a stack of very nice vinyl I've not yet listed). Whilst they might take 6 months to a year or more to sell entirely, am I right in presuming DWP will class this as taxable earnings and it will affect what I receive? Can this be classed as such given that they are inherited goods? (We're talking collectable cds and magazines worth up to £20 and a couple of vintage tech items worth about £300 each)

Clarity that anyone could bring would be appreciated. I know I would have to be open and honest on all benefit application forms about this, but I am not looking to hide anything. Very aware I'm fortunate to have something to have kept me going given the financial horrors many have faced lately. I just wonder if DWP can effectively get their gnashers into what I'm selling (my inheritance I guess) if I claim for Universal Credit whilst searching for work?

Thanks in advance (if anyone can, or if this made any sense whatsoever!)

huckster

These are just inherited possessions which became your property. If you sold all of the possessions in one go and had £6000 or more in savings as a result, you would have to disclose this for benefit purposes.  You could ask for the savings to be disregarded, as it relates to selling of your own possessions, which are going to be used to improve your life etc.

If you are selling your possessions, in the same way, as if you sold say items of furniture from your home, it is only when you convert possessions into money, that it becomes necessary to disclose this.

calcotti

VertDeFerk said:  Whilst they might take 6 months to a year or more to sell entirely, am I right in presuming DWP will class this as taxable earnings and it will affect what I receive? 

They will never be treated as earnings. As huckster says if they are converted to cash that money is then capital, capital in excess of £6,000 reduces your monthly UC entitlement. Over £16,000 and entitlement to UC ends.

[Deleted User]

Remember too you only have a £1000 trading allowance, go over this and you will need to declare it to HMRC. 

Spoonie_Turtle

MarkN88 said:

Remember too you only have a £1000 trading allowance, go over this and you will need to declare it to HMRC. 

No, that's only for sole traders who are buying (or making) items then selling for profit. Selling your own stuff doesn't count.

[Deleted User]

Spoonie_Turtle said:

MarkN88 said:

Remember too you only have a £1000 trading allowance, go over this and you will need to declare it to HMRC. 

No, that's only for sole traders who are buying (or making) items then selling for profit. Selling your own stuff doesn't count.

Oh really? Wasn’t aware. Thanks.