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

Caporegime
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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 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.

This would then count as trading. I'll kill it off.
Its certainly not worth the hassle for a few hundred a year.
 
Are you saying you averse to paying tax on the large amount of items you sell on ebay?

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.
 
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.

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.
 
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?

Basically I thought if you made under 1000 profit you were allowed to get away with it.
Didn't realise it was sales. If so I'd never have bothered.

If you sold 999 things 1 pound each that cost a penny to make you'd be fine.
But if you sell one thing for 1001 pounds that cost 1000 you'd have to report.
Because it sounds so silly I assumed it was profit.
 
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If it's handled through the usual gov gateway and doesn't require accounts other than that I'd agree.. seems relatively simple but you'd need to record each transaction and that typically needs to be via some compliant bookkeeping software. That's the cost that it starts imposing.

This is the issue for me. If I could just download it, send it. Done. That wouldn't be too bad.

But my ebay account is a mix between non trade and trade (under what I know now).

And if it's getting taxed at all it's basically no longer worth it.



As said. For me I'll just sell what I have over years to keep under the 1000. And not buy any more stuff.
 
My Mrs sells loads of her old clothes and shoes on eBay - It's all genuine stuff she has bought for herself rather than selling for profit.

I think she said she earnt £1700 just in the last 90 days!

That's gonna be a nightmare. Because it will look like trading.

This is going to cause a headache for many people I feel.

I expect it's one of those HMRC will start off with the big tax avoiders and work down a list. And at some point not bother.
 
There's usually pictures of her wearing it out, but as if HMRC are going to be interested.

They could well ask for proof. 1700 in 3 months would be, what.. 5k a year?

That's well. In the realms of having to fill in a SA under this new thing.

Means keeping receipts etc. Absolutely ball ache.
 
Wonder how many people

A: will carry on doing what they have been, breaking rules and not fill in SA
B: realise they are breaking the rules and following them isn't worth it and just stop.
C: realise they are breaking the rules and do an SA

I fall into B.

I assume (hope) that if I stop now it'll be OK. (fingers crossed)
 
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I think the majority of group A will rapidly become B or C once a letter lands from HMRC saying "eBay told us you made £2000 worth of sales this year, you probably owe us some tax"

I think so too.

For most people it isn't worth it.
Unfortunately it probably means a lot of Stuff going to landfill.
For example people who don't make any profit but buy/sell a lot.

It doesn't take long to go over 1000 with high value stuff.
 
On plus side I was debating on whether what I was doing was worth it..
It absolutely isn't. Should get some of my time back
 
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Really, this is probably a positive as I expect there is some significant tax to be clawed back.

It is a shame HMRC/government can't be held to account for their dodgy deals and same for mega corps to (legally) avoid tax though.

Worked out it would take me 3 years to clear what I have staying under 1k. That's not too bad.
 
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