Tax on ebay

happily_married

So like most im a bit confused.
If I sell 29 items (under the £1000 limit) then I don't need to pay tax or declare it?
If im working @20% tax then I still don't need to pay tax or declare as long as it's under 30 items?
I'm assuming the above goes for both new and old goods(that are bought on to resell. )
Thanks for any help.
I know it's easy to understand for some but confusing me.

MyRealNameToo

happily_married said:

So like most im a bit confused.
If I sell 29 items (under the £1000 limit) then I don't need to pay tax or declare it?
If im working @20% tax then I still don't need to pay tax or declare as long as it's under 30 items?
I'm assuming the above goes for both new and old goods(that are bought on to resell. )
Thanks for any help.
I know it's easy to understand for some but confusing me.

You state you are buying to sell so are a business seller and sole trader. 

Assuming your "working" is as an employee then there is no need to register as a sole trader until your revenue hits £1k. 

Number of items is irrelevant, HMRC will be told by eBay if you go over 30 but thats just a fact and its revenue that drives reporting requirements not number of transactions. 

happily_married

Thanks.
 So no tax to pay or declarations to do if under the £1000. I  can sell and just ignore everything

Sorry, just want to be totally clear, it's a thing I have 😁 

Also. Is it jan- jan or financial year april- April.

Did I read that the threashold has changed ?

soolin

There are a number of threads you might want to search for on here- but basically nothing at all has changed re tax obligations.

Private sellers selling their own unwanted items are not subject to tax. Business sellers, and that includes people who buy to resell, make things to sell on take a commission for selling for other people should register as self employed once they exceed £1000 in any tax year. Whether or not tax is payable depends on a number of factors, including expenses or the trading allowance being applied to turnover and other income. 

The only difference now is that all online sites now automatically declare turnover to HMRC at a certain point of numbers or income. 

MyRealNameToo

happily_married said:

Thanks.
 So no tax to pay or declarations to do if under the £1000. I  can sell and just ignore everything

Sorry, just want to be totally clear, it's a thing I have 😁 

Also. Is it jan- jan or financial year april- April.

Did I read that the threashold has changed ?

Financial year

And its £1,000 revenue not profit which some seem to mistakingly think it is. 

Threasholds haven't changed. Its tied to the fact you can claim a £1,000 trading allowance rather than the actual expenses incurred as such no point getting anyone to report under £1k as can always be offset by the trading allowance and so never anything to pay (unless someone voluntarily does a return and incorrectly claims expenses under £1k rather than the trading allowance)

LITRG

Hi happily_married
We have information on our website explaining about selling things and supplier statements here: https://www.litrg.org.uk/working/gig-economy/online-traders-and-using-platforms#2 and we also have detailed information about the trading allowance here:  https://www.litrg.org.uk/working/self-employment/trading-allowance, which you may find helpful.