What do we make of this?

Krakkkers

https://news.sky.com/story/money-latest-personal-finance-consumer-live-13040934

RFW

Krakkkers said:

https://news.sky.com/story/money-latest-personal-finance-consumer-live-13040934

To save a click, here's the content.

"Money blog: HMRC issues tax clarification - as Vinted and eBay to start sharing seller information with tax man

People selling unwanted items online can continue to do so without any new tax obligations, HMRC has confirmed - but regular sellers might have their details shared with the tax man from January. "

It's nothing new to anything that's been covered in many threads on here over the last year.

Krakkkers

I must have missed them all.
I buy and sell digital watches on ebay, I might make 100 - 200 pounds a month will it affect me?
I don't do it for money it's a hobby that I enjoy.
If/when they are fixed I sell them.

km1500

yes it will affect you as if you make a profit you will need to consider the tax implications

Krakkkers

How us that possible when I buy from car boot and jumble sales and sell on ebay, I have no records of prices paid?

Krakkkers

I may have to give up a hobby because of this.

the_lunatic_is_in_my_head

km1500 said:

yes it will affect you as if you make a profit you will need to consider the tax implications

I'm not sure the profit matters, plenty of things you could sell for a higher price by circumstance (capital gains tax covers that although IIRC that's £6000 gain per item with HMRC giving some definition of what they view as an item), plus you could trade and make a loss

It's more whether there is the intention to purchase for resale, for some small scales seller that may be a blurry line but they probably aren't making anywhere near enough either way.

Krakkkers said:

How us that possible when I buy from car boot and jumble sales and sell on ebay, I have no records of prices paid?

If you buy to resell and take more than £1000 a year (including things like postage) you should really be registered as self employed and declare the income. 

In terms of purchases @soolin might have more to say on this but you could buy a small receipt book and write down what each watch costs you, if you are paying £5 or £10 and anyone ever looks at your records it would be deemed reasonable.

You could open a new current account, have eBay money going in and make cash withdrawals at an ATM for purchases which should pretty much tally everything together.   

If you are over the £1000 but taking a couple of grand a year I don't think anyone will be bashing the door in to raid the place but with cash accounting and a very small turnover the book keeping and tax return filing should be extremely straightforward. 

martindow

And if you tot up all of your expenses such as mileage to travel to car boot sales and the PO, packaging and other odd expenses incurred in your business, you may well find that there is no profit and it is indeed a hobby.

Krakkkers

The issue is more one of paperwork or self assessment than the tax itself.
This government is going to stifle economic activity.

booneruk

No rules have changed. These conversations have been taking place all year.

People can't just make money from trading (selling items you bought to flip) and be tax exempt because it's a hobby. Sorry, it's just the way it's always been.

soolin

Krakkkers said:

The issue is more one of paperwork or self assessment than the tax itself.
This government is going to stifle economic activity.

Firstly nothing has changed with regard to tax, the only difference is that people trading previously could stay easily under the radar, now there is a better chance they will be ‘caught’. As a sole trader you were always expected to declare income *and submit a tax return. 

* there is a £1000 trading allowance but that is covered several times on threads elsewhere .

I am a reseller I buy stock in bulk from some sources but also buy odds and ends at auction or even on places like FB marketplace. I’m old fashioned so probably not the best person to ask , but I keep paper books, record what I spend and then what I take. I also record things like having to drive to collect items, or postage costs to have items sent to me. I use a simple accounting method, my income is low and getting lower as I run my business down. I act as a so.e traded in my own name and all HMRC require from me each year on my tax return is a total of all income I receive that includes the postage I charge when I send things out, and a total of all my expenses, so cost of items, packaging , outward postage printer ink etc.

The balance is then used to calculate whether any income  tax or NI is due after taking into account my other taxable income for the year less my personal allowances.