Hmrc - ebay/airbnb/vinted etc new rules - 1st Jan 2024

413x

413x

413x

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As someone who buys and sells a bit on ebay but only as a hobby I'm a tad unclear on new rules.

My sales would be over 1000 a tax year
But my profit well under.

Does this mean I would
A) or be taxed? I believed it was profit not sales for the 1000 threshold?
B) have to fill in paper work to show it wasn't over 1000? (ie profit calcs)


If either A or B is true there's no point in doing it anymore
 
If you’re not trading, you’ll be fine.

The only thing that’s changed is how HMRC gets the information. You’ve always been supposed to pay tax when trading through EBay and other platforms. It all comes down to whether HMRC or any reasonable person would consider you to have the badges of trade, as they say.
 
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MichaelAwkward said:
If you’re buying and selling to make a profit, you’re probably classed as trading and rightly so.

If you’re flogging some old possessions once a year to avoid your house filling with accumulated things you don't want or need anymore, that’s not trading.
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This would then count as trading. I'll kill it off.
Its certainly not worth the hassle for a few hundred a year.
 
God forbid that the Tory party enable home entrepreneurs from getting a ball rolling without being anally scraped by the tax office.

If people can get a ball rolling as a business, then they're likely to pay more tax once they get established. Chances are to make that step you'd need to invest money in new equipment, so setting the tax threshold that low is simply reducing the tax overall that can be recovered.

With current inflation that threshold is going to feel very very constrained.
 
The rules aren't changing, they're just getting some tech companies to be more consistent and transparent with reporting.

As far as I'm aware the £1,000 limit was basically saying that if you're only pulling in <£1k you don't need to record profit, loss etc and keep a load of accounts. A fairly sensible measure to reduce the amount of hassle and overheads for people with small scale side businesses.

But if you're going over that then you need to properly declare, figure things out etc.
 
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eddiemcgarrigle said:
Are you saying you averse to paying tax on the large amount of items you sell on ebay?
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I suspect that the cost of profit would be too high. The personal involvement and effort to submit taxation on £1K cashflow (that's including assets and investing in new tools) seems to be rather stark.
 
eddiemcgarrigle said:
Are you saying you averse to paying tax on the large amount of items you sell on ebay?
Click to expand...

I'm saying that the profit is so small it's not worth it.

As its physically buying and selling + risk of eBay hassles + paper work. No its not worth it.
Certainly not for about 400 profit a year.
 
Jim99 said:
The rules aren't changing, they're just getting some tech companies to be more consistent and transparent with reporting.

As far as I'm aware the £1,000 limit was basically saying that if you're only pulling in <£1k you don't need to record profit, loss etc and keep a load of accounts. A fairly sensible measure to reduce the amount of hassle and overheads for people with small scale side businesses.

But if you're going over that then you need to properly declare, figure things out etc.
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I believed it was profit. I've even read it read profit. Seems like a lot of people seem to think this too.

Just means it's not worth the hassle for slim margin stuff.
 
413x said:
I believed it was profit. I've even read it read profit. Seems like a lot of people seem to think this too.

Just means it's not worth the hassle for slim margin stuff.
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To be honest I did until your thread, when I looked it up.

In fairness, the whole point of the £1k threshold was to reduce the admin burden. I would imagine that a lot of countries require all trading activity to be properly recorded and taxed rather than creating a limit below which anything goes. And you've got to set that limit somewhere - £1k seems fairly reasonable to me.
 
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It's seems to be annual income (not profit) of £1k or your own personal belongings on a single item worth £6k.

uwm.co.uk

Paying eBay Tax in the UK: Everything You Need to Know | UWM

Recent changes in UK tax law have made it more important than ever to know all about eBay tax. Find out how to pay your tax on eBay sales with UWM.
uwm.co.uk uwm.co.uk

I'm not sure what that second part means. If I sold a car on there for £6k but it was a car I've owned for three years then is tax still liable and for how much? Or does it just mean I need to do a self assessment (which I already do)?
 
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I expect this will kill off a lot of hobbyist sellers.

If you're making a few hundred a year and then have to constantly book keep, and report and learn a load more stuff many people won't bother.

I've got some stock left. But I'll just sell over the next couple of years under 1000 and call it a day
 
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CGT is also halved this year from 12k to £6k.

Hades said:
It's seems to be annual income (not profit) of £1k or your own personal belongings on a single item worth £6k.

uwm.co.uk

Paying eBay Tax in the UK: Everything You Need to Know | UWM

Recent changes in UK tax law have made it more important than ever to know all about eBay tax. Find out how to pay your tax on eBay sales with UWM.
uwm.co.uk uwm.co.uk

I'm not sure what that second part means. If I sold a car on there for £6k but it was a car I've owned for three years then is tax still liable and for how much? Or does it just mean I need to do a self assessment (which I already do)?
Click to expand...

Unless the car gained value then there shouldn't be any tax as it would be consider CGT, and the threshold is £6k (CGT, the G is for gains...which I think means profit?)

For my purpose, I bought a guitar in 2014 for £1300....current market value is double that even for a used one. So as I am not a trader, it's just a personal item that I use, it should be free from income tax, and it would be within the allowance of CGT.
 
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413x said:
I expect this will kill off a lot of hobbyist sellers.

If you're making a few hundred a year and then have to constantly book keep, and report and learn a load more stuff many people won't bother.

I've got some stock left. But I'll just sell over the next couple of years under 1000 and call it a day
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The point is that there’s no such thing as “hobbyist sellers” as far as tax is concerned and never has been. Where did you get that idea from?
 
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Hades said:
It's seems to be annual income (not profit) of £1k or your own personal belongings on a single item worth £6k.

uwm.co.uk

Paying eBay Tax in the UK: Everything You Need to Know | UWM

Recent changes in UK tax law have made it more important than ever to know all about eBay tax. Find out how to pay your tax on eBay sales with UWM.
uwm.co.uk uwm.co.uk

I'm not sure what that second part means. If I sold a car on there for £6k but it was a car I've owned for three years then is tax still liable and for how much? Or does it just mean I need to do a self assessment (which I already do)?
Click to expand...
That link states that a personal car sale is explicitly exempt from CGT (HMRC link backs that up).
 
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