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

[Raymond Lin]

Although this page says personal possession with life span of less than 50 years are free from CGT. This includes machinery, clocks, watches, and guitars. Which means you can sell that 70's Rolex free from CGT. Although just to be safe....1974 onwards!

Capital Gains Tax on personal possessions

What personal possessions (chattels) you need to pay Capital Gains Tax (CGT) on, how to work out your gain

www.gov.uk

 

[NickK]

Self assessment is pretty easy though.

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.

 

[413x]

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.

 

[413x]

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.

 

[VincentHanna]

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!

 

[413x]

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.

 

[VincentHanna]

There's usually pictures of her wearing it out, but as if HMRC are going to be interested.

 

[Raymond Lin]

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!

They are going to make her prove it, she will have to show receipts bought for items sold, each and every one of them so show that £1700 doesn't break even.

 

[413x]

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.

 

[sprite1275]

Is "the £1000" on top of your total earnings? So if you have job as well your stuffed?

 

[413x]

Is "the £1000" on top of your total earnings? So if you have job as well your stuffed?

If you have a job you still get the 1000 leeway.

 

[new boy]

Is "the £1000" on top of your total earnings? So if you have job as well your stuffed?

You can earn what you like through PAYE. Nothing to do with this.

You can then make up to £1000 turnover self employed before you have to register and pay tax on your earnings. eBay trading and such counts towards that.

If you mow some lawns and take £600 then buy and sell on eBay and take £600 you will need to register

 

[Destination]

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.

This is utter ***** m8.
People have been meant to declare their turnover when it was above £1000, and they clearly haven't been, so HMRC is tightening up upon such things.
It isn't how they 'get the ball rolling' if they're selling over 1000, the ball is well and truly rolling already.
Also if it is the only thing they are doing, then they'll still have a massive tax free allowance, which would allow sales of up to 13000, and indeed profits of up to 12500, but you still have to declare you are doing it.
So I disagree entirely with what you are saying.

 

[leezer3]

I regularly buy stuff in a category that is plagued with traders masquerading as private sellers and dancing round rules like this.

The harder these people are hit the better.
Bookkeeping and basic business ethics is not hard- If these changes cause you any issue, or as a result you need to change your practices, then bluntly I'm afraid business is not for you.

 

[henson0115]

This is utter ***** m8.
People have been meant to declare their turnover when it was above £1000, and they clearly haven't been, so HMRC is tightening up upon such things.
It isn't how they 'get the ball rolling' if they're selling over 1000, the ball is well and truly rolling already.
Also if it is the only thing they are doing, then they'll still have a massive tax free allowance, which would allow sales of up to 13000, and indeed profits of up to 12500, but you still have to declare you are doing it.
So I disagree entirely with what you are saying.

not saying i agree or disagree just trying to understand, what happens if a car is sold that has already had taxed paid for, so now the seller gets taxed twice once when they brought it and once on sale? seems a bit grey to me.

 

[Kenai]

not saying i agree or disagree just trying to understand, what happens if a car is sold that has already had taxed paid for, so now the seller gets taxed twice once when they brought it and once on sale? seems a bit grey to me.

I'm not entirely clear what you're asking...

If you're selling your private car, the only tax you need to worry about is VED.

If you're talking about trade, a trader gets taxed on the profits they make.

Not sure what you're referring to with taxed when they bought it and again when they sell it really.

 

[NickK]

Indeed. Seems a bit of a whiff if youre being taxed on the (previously taxed sale of) asset and not the profit.

 

[henson0115]

i assumed it applied to all sales over 1k. if your paying tax when you buy the car which you are and tax again over the 1k limit then your being taxed twice no?

 

[Jim99]

i assumed it applied to all sales over 1k. if your paying tax when you buy the car which you are and tax again over the 1k limit then your being taxed twice no?

Your assumption is wrong. It's about making sales with the intent to profit, so if you were running a business buying and selling cars - sure.

If you buy a personal vehicle, drive it and sell it, no.

 

[Minusorange]

I expect it's one of those HMRC will start off with the big tax avoiders

How naiive, they'll go after the low hanging fruit, the people who are slightly over who don't know any better