I’m very confused about declaring National insurance number to ebay for tax declaration in the U.K.
I’ve been receiving messages regarding this from ebay of late. The brief says I have exceeded the threshold of £1740 therefore I must declare NI number.
After reading a few articles online I’m still confused. The articles state that if I’m earning extra income from sales as a “side hussle” I’m obliged to pay tax.
Yet as we all know we don’t turn a profit on any of the gear we sell. In fact we make quite a substantial loss. In most cases more than 50 percent loss from new and even on pre loved gear as much as 30 percent loss.
I think I’ve sold less than 15 items in the past calender year so clearly I’m not a business seller. On every item (all hifi gear) I’ve made an average of 30 percent loss relative to purchase price. However as some items have been high value items, I’ve exceeded the designated threshold.
My question is what is everybody going to do to sell on ebay now? I refuse to pay tax on an item that I’m already making a loss on.
Extra money is extra money so not a total loss no different to a shop doing discount it’s on you.
They still pay tax although they’ve made less on it.
Now there’s a limit for pocket money.
As far as I can make out ebay will pass National Insurance number to HMRC who may check your ebay sales against your tax returns. And in turn they may ask questions.
You don’t need to pay tax unless you are making a profit, which you are not.
You can clearly demonstrate this.
However, if you bought a turntable for £8000, spent nothing on it and sold for £10000. Then that’s a profit.
Income is income whether you lose on it or not.
It’s extra money you wouldn’t have had so any loss is on you.
Anyone moaning about this just wants their cake and eat it.
I was one so now the loophole is closed.
You get a yearly allowance.
. We earn money to spend on this hobby. I don’t understand where it becomes “extra money” I buy and sell hifi regularly. This is how I spend my money. If I’m having to pay tax on items I’ve bought and sold within a few years that I’m already losing money on I’d completely stop buying anything.
There was a thread last year here called (I think) “HMRC selling goods online”. There is a useful info sheet from HMRC on “gov dot uk”.
It does distinguish between “trading for profit” and “attic clearance” type activity. In the latter case you shouldn’t need to inform HMRC. I don’t know what EBay reporting rules are though.
Another note is that HMRC assign selling of unwanted items as acceptable. So the only difference here is that it’s a higher value asset than their threshold however the fact remains it’s still an unwanted used item that you’re selling at a loss from purchasing price.
The extra earning is selling the item you don’t want.
Therefor income above wages
Simple.
If you lose on the deal that’s tough.
No different to a shop discounting or selling a trade in they still get taxed on it.
Who really expects to sell stuff and not declare in one from it.
Unless done illegally.
It’s a loophole that has become expected.
Any income other than your wage or salary should be declared.
We know not many do it but this is a new way of closing the loophole.
I don’t like any more than anyone else but when the system catches up you have to suck it up or do the next dodge.
The digital platforms are obliged to pass on to HMRC details of sellers activity unless the activity is less than a total of €2,000 and 30 transactions in the year. That does not mean that you necessarily have any tax liabilty. In simple terms (but do read up about it as these can be grey areas), if you are just selling stuff as a hobby and not trading then there is nothing to declare. Especially as you will probably be making a loss and HMRC don’t want those losses being offset against other income. In any event it is NOT taxation of turnover (i.e. sales proceeds)!
So if you buy a car for personal use and sell it you’re required to pay tax on it. No you’re not according to U.K. tax law. So your explanation makes no sense.
If you open a second hand shop and you sell goods it’s then income Therefor taxable.
Only charities have special allowances for tax payments.
EBay knows exactly how much you sell on the bottom line and when you reach that limit there can be no other sales to your account.
Unless set up as a Buisness seller that’s it.
It’s the same as it being unfair to have a second hand shop and the guy next door only does car boot for cash.
It’s a loophole.
From HMRC.
What details will digital platforms share with HMRC
Sellers should note that since 1 January 2024, online marketplaces must collect and report seller information and income to HMRC. These digital platforms must report sellers’ income by January 2025. The changes are an internationally agreed set of rules for Online marketplaces to report certain information to HMRC.
If you have trading income from selling goods online, you must register to pay a self-assessment tax return.
In any event it is NOT taxation of turnover (i.e. sales proceeds)!