Suspended
Oh she has to pay it. Ouch!
Hmrc - ebay/airbnb/vinted etc new rules - 1st Jan 2024
- Thread starter 413x
- Start date
Oh she has to pay it. Ouch!
It's not at all.
I think you guys are missing the massive hint Pudney has dropped above, just think about one of the things a trader does that makes their activities totally different to what someone involved in a hobby will experience.
They make a profit! "this whole online buying dynamic" also means you can very easily just pull up the transactions and show a loss if needed.
If you're in a hobby and you buy some equipment and then want to sell some of it to fund an upgrade you're typically going to be taking a loss.
Secondly, the activities of a trader are going to look very very different to the typical member of the public selling second-hand goods, you're highly unlikely to be flagged up for anything in the first place if you're not a trader. For example, people with under 30 transactions on Depop aren't even going to have details passed on to HMRC and then of those who do have details passed on HMRC is going to review the activity and target the more obvious traders, AFAIK having your details passed on does not necessarily mean HMRC will start some serious investigation.
Last edited:
The boundary is £1000 profit.
Ok, i can understand £1k profit however the OP was 1K turnover which seemed bananas.
Soldato
Its turnover, but it could be profit
If I was a computer builder who as a side gig did windows fixes etc, ie all knowledge, I could do £1k turnover, and make £1k profit, nothing to declare
If I was the same fella doing upgrades I could do £1.2k turnover with £200 profit and need to declare.
IE when your making/creating its far more valuable an allowance than if your buying and flogging say LEGO
This kind of highlights the stupidity of it.
Though I still haven't found anywhere that actually specifies what definition of "gross profit" the HMRC are using.
You wouldn't actually have to pay tax on that £200 profit though, you just have to declare it.
If they owe 37k in tax, just think about how much they've made! Must've been over 100,000.
Well, what did he expect?
That's a pretty big bill coming his way lol
Probably. But eBay purchase history only goes 3 years back (I can currently only go back to 2021), and PayPal - 4 years. I've started downloading purchase history for future - but didn't have such intel 5 years ago. That's why it's important for people to know the rules of the game.
Suspended
7 years at around 1400 a month but had to pay mortgage, council tax and electricity out of that. HMRC think she was only renting a room out and not the whole flat so it could have been worse.
And i'm sure they would declare these expenses and get their bill lowered.
If you think about it, the mortgage was paid out of the tenants' pocket, but the friend is the one who ended up in possession of a flat that cost them way less than the actual value... Not only that, it also appreciated in value above the rate of inflation... No offence, but this is the type of folk that HMRC should be looking at. How many people are paying someone else's mortgage through their rent and don't get a break to save up for a deposit so they can stop wasting money and can have a mortgage of their own to pay...
Last edited:
Suspended
She didn't buy it to rent it. She lived in it herself for 10 years but then met a guy and moved in to his place, she kept it as security in case it didn't work out long term. She certainly isn't one of these people that snap up properties to rent them out. I agree that is a major problem here now.
Soldato
Average out over the course of a holiday season, including time he spent down there, About £400/week Mid-March to start of November (34 weeks) for 6 years, he's had about £82k of undeclared income
Something tells me he's gonna be selling the caravan to make a dent in the ensuing bill. If I've calculated it right he'll owe about £3k per year plus any fines that HMRC levy.
Soldato
I am starting to come around to everyone should need to file a simplified tax return after the stuff I am starting to hear.
I kind of shake my head at how people can be so oblivious to what should be paid and when.
I kind of shake my head at how people can be so oblivious to what should be paid and when.
Probably because gross profit has nothing to do with it and it’s just a term people are using when explaining things to you.
There’s lots of explanations in here which although get you to the right end result aren’t actually how things work.
Unless you have another job.
Isn't there a £1000 non-tax allowance for those who do have a job?
There's a £1,000 on gross income threshold for self-assessment, but there's also a £1,000 threshold for net income (pure profit)
Last edited:
The way I kind of learned it in school is: profit = net income. Net income, as opposed to gross income. Gross income = moneys from a sale - costs (purchase of the original item itself, shipping, eBay fees). So "gross" in "gross profit" is redundant and therefore confusing. Is that what you're thinking?