Anybody heard any news about being taxed on eBay sales?
Taxed on eBay sales?
- Thread starter Grant_C
- Start date
Yes I have heard about it, but in true UK Government style Googling it offers little information, here is their incredibly in depth guide to it:
http://www.hmrc.gov.uk/guidance/selling/index.htm
****ing idiots :roll:
Apparently you have to register by 16th June. To be honest I wouldn't bother unless you're as big a seller as somebody like Robbie @ Galactables who clearly makes quite an income from it. I believe buying and selling things for your own collection is fine. It's really aimed at people that are making a decent income from eBay.
http://www.hmrc.gov.uk/guidance/selling/index.htm
****ing idiots :roll:
Apparently you have to register by 16th June. To be honest I wouldn't bother unless you're as big a seller as somebody like Robbie @ Galactables who clearly makes quite an income from it. I believe buying and selling things for your own collection is fine. It's really aimed at people that are making a decent income from eBay.
Tax for swapping marbles next.
JuniorChubb
Sith Lord
I have read that the inland revenue keep an eye on eBay for regular sellers who use eBay and don't declare there earnings. I read this while researching before doing my yearly accounting, they have got their grubby little fingers in all the pies...
JuniorChubb
Sith Lord
Here you go...
http://www.guardian.co.uk/money/2012/may/01/ebay-traders-hmrc-tax-spotlight
Just for the record I am not a Guardian reader
http://www.guardian.co.uk/money/2012/may/01/ebay-traders-hmrc-tax-spotlight
Just for the record I am not a Guardian reader
Dark Sith Lord
Grand Master
I read a similar thread in the Sun last week Junior. Interesting.
Bramistuta25
Sith Lord
What a joke... Where do they draw the line?
:evil:
:evil:
JuniorChubb
Sith Lord
Bramistuta25 said:
Wherever they like 'cos they have an eraser and they can rub it out and draw it again somewhere else!
Hopefully this will only apply to those running a business through eBay, if that's the case fair play, money makes the world go round. Its when the collector gets stung that it becomes unfair, regular selling of your collection to upgrade should not be taxable but you would have to do a hell of a lot of buying and selling to get noticed.
Bramistuta25
Sith Lord
JuniorChubb said:
I know exatly what you mean buddy... I am so suprised that no-one has started up a vintage action figure auction sight, similar to eBay but specific to toys... Actually surprised that it doesn't have a rival that charges less fees... billions to be made if you can start it up!!
JuniorChubb
Sith Lord
Bramistuta25 said:
That's a good call on the Vintage auction site, I think it would have a chance if you gave it the head start of ready made audience. If SWF, TIG or RS provided a service like this it might take off. Starting an auction website like this has been made a lot easier recently as template websites become more popular, there are probably ready to go auction templates that could be used, but without the users it would soon be in the website graveyard with all the other eBay wannabes out there.
Its a bit more complex under the hood though, making a good sales site is easy but an actual auction site would be difficult, very high maintenance and probably a lot of legal ground to cover to protect people.
The site would have to be hack proof so i wouldnt use a template either.
Chuck in all the backup and fault tolerance, governments beady eye on you and its probably not worth the **** lol
The site would have to be hack proof so i wouldnt use a template either.
Chuck in all the backup and fault tolerance, governments beady eye on you and its probably not worth the **** lol
JuniorChubb
Sith Lord
plantman said:
Your right about the legwork but I think the legal work would be the biggest hurdle, protecting the user would be a nightmare.
As for being Hack proof, I don't believe there is such a thing really.
All in all a lot of **** to deal with, but there could be money there after the initial slog.
plantman said:
Yeah, it just wouldn't pay for itself. Also people are still going to want to use ebay to sell their stuff because there's always gonna be way more traffic there. I know i wouldn't use a 'vintage only' site to sell my stuff.
JuniorChubb
Sith Lord
Just been talking to my brother, he listens to FiveLive (British radio station). He said they had a discussion on this the other day, the summing up was that anything sold as a household item (i.e you own it and are selling it as you no longer use it) you are exempt, but anything bought and sold with the intention of making a profit should be declared... ANYTHING!!!
So where does that leave the collector? In my eyes if you are upgrading your collection you are selling on something you no longer use, therefore making a 'household' sale. This leaves a lot of grey area to play around in. :wink:
So where does that leave the collector? In my eyes if you are upgrading your collection you are selling on something you no longer use, therefore making a 'household' sale. This leaves a lot of grey area to play around in. :wink:
we dont really know what level they are investigating this, but one quote i came across on the net was something like this:
"jon sells 2 china items per week from a collection in his loft" this is classed as private sales "bob sells 50 china items per day" this is a clear trader
But it depends on what your profit margins are a suppose, if he makes 10p per cup i doubt they would chase him, but what if "jon" sold 2 china items at £600 each??
i think they will look at your total monthy sales total and decide from there.
"jon sells 2 china items per week from a collection in his loft" this is classed as private sales "bob sells 50 china items per day" this is a clear trader
But it depends on what your profit margins are a suppose, if he makes 10p per cup i doubt they would chase him, but what if "jon" sold 2 china items at £600 each??
i think they will look at your total monthy sales total and decide from there.
ODB
Jedi Master
- Joined
- Jun 2, 2010
- Messages
- 701
This is nothing new, HRMC have always had the option to investigate people with regards to selling items (whether they be collectibles or anything else for a profit), but its always been about proving the amounts, frequency and margins. Ebay and to a lesser extent Amazon have just made it a whole lot easier to prove these things, why do you think cash in hand car boot sales are still so popular with sellers?
HRMC used to apply a limit of £5k but they have had a remit since about 2007 to go after smaller amounts in order to get more cash. Hence why they are tighter on import duties, VAT queries and tax returns.
HRMC used to apply a limit of £5k but they have had a remit since about 2007 to go after smaller amounts in order to get more cash. Hence why they are tighter on import duties, VAT queries and tax returns.
