Income tax on Ebay sales

WorstDancer

Just seeing how much work I need to do.

If I sell something for 9.79, my Ebay fees are 1.56

Net is 8.23, expenses are 1.56

So tax = 8.23 * 20% = 1.65

—

So Ebay pay me 8.23, so just for sales all I have to do is pay 20% of what Ebay pays me? Because the expenses have been removed at source?

Before the 20% tax total is found I would have to minus any other non-Ebay expenses such as purchases. (Would still have to keep Ebay financial reports safe for future)

Am I correct?

subjecttocontract

Surely only the EBay expenses have been removed. What about all your other expenses/ operating costs, are you taking them into account ?

WorstDancer

https://forums.moneysavingexpert.com/discussion/comment/82029155#Comment_82029155

I did mention the other non-Ebay expenses:
"Before the 20% tax total is found I would have to minus any other non-Ebay expenses such as purchases. "

I just wanted to know if I need to find each individual fee charged for each sale? As the amount paid by Ebay gives the net profit already?

chrisbur

Are you getting over the trading allowance?

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

LITRG

Hello WorstDancer, you may find our guidance on online platform sales, and seller information statements helpful:

Online platform sales: how seller information statements can help you complete your 2024/25 tax return | Low Incomes Tax Reform Group

Seller Information Statements | Low Incomes Tax Reform Group

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82036342#Comment_82036342

Think the treatment is the same across all of the online marketplaces.

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82036342#Comment_82036342

the same

techncially if you are deliberately selling stuff on a regular basis that you have yourself purchased to deliberately see them in the eyes of HMRC you are "trading" with a view to making money. You will therefore be taxed on your profits: Price sold minus fees minus purchase cost

If gross income <£1,000 then you do not need to delcare it at all as it is covere dby the trading allowance.

If gross incpome >£1,000 you can choose wherether to show actual total costs to produce the profit figure, or you can just deduct £1,000 allowance and declare that net profit.

Pedantically the online platforms fees should be included in your calculations, but for practcial purcoases it is ok just to record the net cash received in your bank avcount after the fee has been kept back by the platform. That said, if you are turning over many £0,000 then it is more likely you will be expected to keep proper accounts showing the full detail, not a simple record of cash in.