Tax and N.I. Ebay

youth_leader

I haven't listed on ebay since the rule changes as I am anxious about this, let us know what happens.  I have noticed many many Facebook pages  have popped up recently selling clothing,  'Preloved Boden' etc and the prices are high, some sellers asking for payment by Paypal goods and services.  Good luck.

soolin

I have attempted to tidy up this thread by splitting off the off topic stuff about business selling as far as I can, apologies for any confusion .

The split thread is here

Tax and NI split thread — MoneySavingExpert Forum

petunia100

TimeLord1 said:

This reporting requirement came into effect in January 2024 and applies to all digital platforms, including eBay, in the UK For new customers and existing customers, it started in January 2025. So as you're over the 30 items now, eBay will share that with HMRC. And are requesting your NI details as required.


Anything you sold previously from 2014 selling personal items wouldn't count; only buying to sell for profit activity would be classed as trading and require you to submit a self-assessment once the £1000 pounds was passed.

The thing is I may have sold over 30 items but as I've only received approx. £500 in total, some items were as low as £5. They should base it on money received. Also, that £500 includes P&P, paper, ink etc. So it's hardly fair to assume that i'm making £500 because i'm not.

soolin

petunia100 said:

TimeLord1 said:

This reporting requirement came into effect in January 2024 and applies to all digital platforms, including eBay, in the UK For new customers and existing customers, it started in January 2025. So as you're over the 30 items now, eBay will share that with HMRC. And are requesting your NI details as required.


Anything you sold previously from 2014 selling personal items wouldn't count; only buying to sell for profit activity would be classed as trading and require you to submit a self-assessment once the £1000 pounds was passed.

The thing is I may have sold over 30 items but as I've only received approx. £500 in total, some items were as low as £5. They should base it on money received. Also, that £500 includes P&P, paper, ink etc. So it's hardly fair to assume that i'm making £500 because i'm not.

The reporting requirement are based on either the amount sold or the money taken, that's just the way it is . However, nothing has changed, if you aren't a business then you're not liable for Income tax, so no need to prepare accounts. There is also no assumption you are 'making' £500, that wouldn't even apply to a business, when I prepare my business accounts I show all my income and then all my expenses, exactly as you say leaving a new taxable profit. I do not do that for my private sales as there is no need. 

As advised earlier on the thread, if you don't wish to supply ebay with the info, then they still declare the sales anyway- it just means it may need a bit more effort on HMRC behalf to allocate it rather than it just being done automatically. I would also reiterate that it is probably best to withdraw any money in ebay and consider not risking listing more as there is a good chance at some unspecified point in the future your account might be frozen for non compliance, and you don't want to risk tying up your money for weeks. 

petunia100

TimeLord1 said:

This reporting requirement came into effect in January 2024 and applies to all digital platforms, including eBay, in the UK For new customers and existing customers, it started in January 2025. So as you're over the 30 items now, eBay will share that with HMRC. And are requesting your NI details as required.


Anything you sold previously from 2014 selling personal items wouldn't count; only buying to sell for profit activity would be classed as trading and require you to submit a self-assessment once the £1000 pounds was passed.

Could someone clarify please. So Timelord says it came into affect Jan 24 and then says it started in Jan 25. Which is it?

soolin

petunia100 said:

TimeLord1 said:

This reporting requirement came into effect in January 2024 and applies to all digital platforms, including eBay, in the UK For new customers and existing customers, it started in January 2025. So as you're over the 30 items now, eBay will share that with HMRC. And are requesting your NI details as required.


Anything you sold previously from 2014 selling personal items wouldn't count; only buying to sell for profit activity would be classed as trading and require you to submit a self-assessment once the £1000 pounds was passed.

Could someone clarify please. So Timelord says it came into affect Jan 24 and then says it started in Jan 25. Which is it?

I suspect a missing word - it should be :
'January 2024, digital platforms are mandated to gather information on sellers and their earnings, reporting this data to HMRC by January 2025'

Not that it makes any difference though as private sellers still won't be liable for income tax, and business sellers should already be declaring (with caveats around trading allowance etc). 

soolin

Co incidentally some threads are beginning to appear on various forums, including the eBay community boards where people are saying their accounts have been frozen due to no NI number being supplied.

this is also being posted as an explanation as to the legal requirements I posted on eBay.

https://www.ebay.co.uk/help/account/regulatory/sales-reporting/uk-digital-sales-reporting?id=5454&st=3&pos=1&query=UK%20digital%20sales%20reporting&intent=ebay%20request%20for%20national%20insurance%20number&lucenceai=lucenceai&docId=HELP1769

”

IEIM902350 - Collection of Information where the Seller does not Co-operate

"Where an RPO does not collect the information during onboarding, or where the RPO has pre-existing Sellers using the Platform, it will need to ensure the information is collected subsequently, and by the relevant deadline. This may include going back to the Seller to ask for further information and could potentially include temporarily suspending access to the Platform until the Seller provides the information required."

So as previously advised, don’t  sell any more as that may lead to your funds being held by eBay . 

LITRG

Hello, we have a comprehensive page of guidance on the OECD reporting rules on our website: https://www.litrg.org.uk/working/gig-economy/oecd-rules

Pollycat

LITRG said:

Hello, we have a comprehensive page of guidance on the OECD reporting rules on our website: https://www.litrg.org.uk/working/gig-economy/oecd-rules

This is not relevant to the OP as they are a private seller, not a trader or business.
This thread got confused as posters were mentioning trader/business rules. 
Soolin (board guide) very helpfully split the trading/business posts into another thread (please see the 2nd post on this thread and move your post to the appropriate thread.

Spoonie_Turtle

To be fair they do state multiple times that existing tax reporting rules have not changed, and then explicitly "Category B captures people who buy or make purposefully to sell; but not those who sell a few personal belongings every now and again, for example to declutter."

(I think it's quite helpful to have an explanation of why platforms are requesting this information, as long as people are clear about whether they themselves are trading or not.)