How to account for income from eBay sales when listing as a private seller?

savergrant

https://forums.moneysavingexpert.com/discussion/comment/81884860#Comment_81884860

"You don't need to charge vat if you bought it from a seller that was not vat registered and you didn't reclaim any vat"

If you made a profit you would need to collect VAT on the profit if you are selling as a VAT registered business at the very least (possibly the full amount if it doesn't meet the criteria for a margin scheme)

martindow

https://forums.moneysavingexpert.com/discussion/comment/81889858#Comment_81889858

Yes only for business items, personal sales would not involve VAT and would not be taxable either.

I agree that selling business items to yourself would not simplify the VAT situation. If you are are using eBay or accepting offers you won't know their value before they are sold and some might not sell at all!

se2020

If you listed the items on ebay at the start of the vat quarter then towards the end of the period you'll just tally up what's sold and use a date from the start of the period as date of sale to yourself

theville32

Thanks for everyones comments on the ebay business sales.

Can I ask how Universal Credit would see sales of business assets? I did google this and it appears they would see this as income. However, I wondered whether it would 'all' be considered as income (excluding delivery charges). Or should it be calculated by the difference (if positive) between the original purchase (less delivery costs/ebay fees) and sale price?

When these items were purchased, the full amounts were added to expenses. There was no depreciation etc.

Any help greatly appreciated. Thanks!

Spoonie_Turtle

If you are registered as self-employed for UC then your income is worked out as 'income - actual expenses' (the difference between them). Actual expenses being postage, fees, any other business expense, in the assessment period in which you pay them. And income being taken into account in the assessment period in which you receive it as well.