eBayer worrying about new HMRC Reporting Requirements

SockDisorder

Spoonie_Turtle said:

Whatever happens, her PIP won't be affected.

If it's genuinely secondhand stuff, bought for her to use and just being sold because they're now surplus, her UC is fine too and she doesn't need to worry there.

The arts and crafts things she actually makes would fall under business IF she sells them, but you say she gives them to people so that's not a problem either.

I know easier said than done, but keeping it in perspective will help.  In reality, with the amount of people who'll be caught up in the reporting thresholds (the majority probably being genuinely private sellers), HMRC will only have the resources to go after the biggest sellers who are clearly unregistered businesses receiving most likely tens of thousands of pounds in revenue.
The reporting thresholds are apparently something to do with EU reporting, but for HMRC they will a) help them find businesses needing investigating, and b) scare some unreported businesses into compliance, saving HMRC from having to go after them.

For private sellers, nothing has changed.  So for selling off their own unwanted/unneeded stuff, it might actually be suspicious if they'd kept receipts and everything - that's what a business would need to do, not private sellers.

Thank you.

I think this is what she needs to focus on - she isn't a trader, even if it may look like one to the untrained eye.

In my opinion it won't be that difficult to prove either, considering the stuff she's accumulated - and I expect she won't be the only one they've encountered like this.

I think she's now going to gather up all her existing stickers and card making supplies and sell them as a couple of bundles rather than as individual items - just to alleviate any potential aggravation in the future.

SockDisorder

RFW said:

From the opening post it isn't clear whether there is some trading happening. 

So, are there any rules to the definition of 'trading', i.e. if it is a personal account with no intention to run a business, is it still classed as trading?

RFW

SockDisorder said:

RFW said:

From the opening post it isn't clear whether there is some trading happening. 

So, are there any rules to the definition of 'trading', i.e. if it is a personal account with no intention to run a business, is it still classed as trading?

Essentially if you buy or make anything with the intention of reselling it then you are trading.

From the opening post there may be some intent to resell with the stickers, the jigsaws are being used, so they aren't being traded
There is allowed £1000 of annual turnover before declaring that. From the sounds of it there isn't much to worry about. At the outside chance that there is any tax needing to be paid it would be so small that no one will be chasing for it. The new reporting rules are set up to catch international traders avoiding tax in multiple countries, no one is bothered about someone taking £20/week.

soolin

SockDisorder said:

RFW said:

From the opening post it isn't clear whether there is some trading happening. 

So, are there any rules to the definition of 'trading', i.e. if it is a personal account with no intention to run a business, is it still classed as trading?

Trading is outlined  on the HMRC site and discussed on various threads here and all over. I'm not sure rehashing the same discussion again will be useful and it might be worth looking through this forum for some of the other threads. 

Basically though if you buy to sell, or make things to sell then you are trading whether or not you are using a private or business account on any online site. If you sell your own unwanted things then you are not trading.

As above though for any more in depth assistance HMRC can be approached for advice

BIM20205 - Meaning of trade: badges of trade: summary - HMRC internal manual - GOV.UK (www.gov.uk)

GadgetGuru

Spoonie_Turtle said:

In reality, with the amount of people who'll be caught up in the reporting thresholds (the majority probably being genuinely private sellers), HMRC will only have the resources to go after the biggest sellers who are clearly unregistered businesses receiving most likely tens of thousands of pounds in revenue.
The reporting thresholds are apparently something to do with EU reporting, but for HMRC they will a) help them find businesses needing investigating, and b) scare some unreported businesses into compliance, saving HMRC from having to go after them.

For private sellers, nothing has changed.  So for selling off their own unwanted/unneeded stuff, it might actually be suspicious if they'd kept receipts and everything - that's what a business would need to do, not private sellers.

Precisely this!
I know Im over the £1700 or whatever threshold for this year already, but its because I have been selling my unwanted IT equipment. Never had multiples etc - only ever have a single of any item to sell. Hence its quite clear that they are personal items. 
Its more those who make thousands, and are selling multiples of items at profit that will get caught out.