HMRC Tax on selling online

I see that from the end of the month in the Uk, you will pay tax if you sell more than £1000 of goods in a year.
EBay , Facebook Marketplace etc will provide HMRC with your details of transactions to them.
I wonder how this is going to affect 2nd hand prices . Are folk going to put up prices when selling your Naim kit to cover to cover the tax they will have to pay.

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Thank you for letting m know , I have a pair of Gary Hodges prints (Jaguar and Snow Leopard ) that I wanted to sell as a pair

Really? You haven’t moved the calendar on to April 1st by mistake, have you?

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It’s not a sales tax, it’s income tax, so you would perhaps have to complete a tax return. I don’t think we know yet.

It’s to catch small traders selling stuff on line for profit, not people selling an unwanted item of audio gear. The £1000 is just the normal exemption for very small traders.

I think if you’re legitimately selling on secondhand kit that you own privately then you should be OK.

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Blimey. I sold about £10,000 of stuff on eBay last year. I paid for it with taxed income and paid VAT to the shop, so it would be odd to pay more income tax on the sale. That’s double taxation.

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You would be taxed on profit HH, not on revenue.

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That would make sense, though it sounds administratively challenging. I am reassured, as I’m hopeless at making a profit on anything. A tax refund on losses would be great though.

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If you Google or otherwise look for the Guardian article of yesterday, entitled

“Selling goods online? Be warned: HMRC will soon know about it”

then you will be able to read all about it.

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Her is the link - for Guardian readers only… :smiley:

“Everyone has a trading allowance each tax year, which means they can earn up to £1,000 without paying tax. “Those involved in ‘hobby selling’ – for example, they may make a few sales and genuinely be hoping to make a profit, but on a small scale, may have no real issues.”

£1000 profit, per year. I should be OK… :thinking:

The Guardian article says if you bought the item at a higher price it does not count as it is a loss, so most of us will be OK. I am slowly Ebaying the books in my library built up over 50 years.
If they hassle me I will try to get my losses offset against my other income, that will tie them in knots! The joy of being a pensioner with plenty of spare time,

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As :santa: says, ‘Ho, ho, ho’……

ATB, J :grinning:

As I have told my son, selling on eBay or elsewhere is just loss reduction… :crazy_face:

Its extremely rare for me to actually make a genuine profit.

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a similar proposition in EU. Authorities want to tackle high frequency sellers who actually take advantage (abuse) of the private person status. Looking around on the different on line sales platforms, the offer of a lot so called private sales undeniably indicates the intervention of a business/company.

Nearly posted this earlier having seen this BBC article:

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I’ve never used ebay or similar, but I rarely throw things away.

I’ve been considering trying ebay to get rid of stuff I don’t use or need anymore.

This announcement annoyed me a bit because as HH said earlier if this happens when disposing of items you’ve paid for with taxed income and paid VAT to boot then it seems quite unfair.

The BBC article seemed to suggest it was a tax on sales over £1000 per annum. Hopefully it is ‘profit’ but pretty hard to prove you haven’t made a capital gain of some kind if the item is old and you have no proof of purchase even if inevitably selling at a loss.

Devil in the detail I guess.

I read something about cryptocurrency profits about a month ago.

Phil

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If I sold my car on eBay I’d be liable for tax! How are they going to prove it though? I’d have to admit that there was a “profit”.

If you sold a personal possession for £6,000 or more, and made a profit, you need to tell us about this income. This is because you may have to pay Capital Gains Tax on the profit you made.

Do the fee’s incurred by eBay and paypal offset the profit does anybody know or still too early to have the details ? These fee’s can be pretty chunky and sometimes up to 10% of the value. A few times I thought I have done well selling something only to be hit with the fee’s and actually ended up at a loss !