It made more of a difference before I hit the 50k tax band. Now it really isn't worth my time. So this is probably a blessing in disguise.
I'll just run down what I have over the next few years and get some loft space back.
Hmrc - ebay/airbnb/vinted etc new rules - 1st Jan 2024
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It made more of a difference before I hit the 50k tax band. Now it really isn't worth my time. So this is probably a blessing in disguise.
I'll just run down what I have over the next few years and get some loft space back.
Yeah. If there's one thing to make me feel. Old it's the state of social media.
Its the only time I can really feel the age gap between my 20 something year old friends and the 30 somethings.
The 20s share tiktok stuff. And I do not understand. Especially the super short stuff.
From what I gather you'll be OK this year as it's from 1st Jan 2024.
But if it was in one tax year from now you'd have to fill in self assessment.
(technically)
Its going to get a lot more popular.
Then the crack down will happen in there.
I've delisted my remaining items on ebay as its new year. Usually they are up for weeks until they sell. I'll re add some in next tax year and be careful to stay under 1000
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I have one expensive (not 1k but getting there) old thing left to sell that's appreciated.
The tax on if its CGT or just income is vague. I'd rather just sell. It on FB than have to deal With all the faff. May get a bit less. But if I can avoid the faff.. I'll do that.
The tax on if its CGT or just income is vague. I'd rather just sell. It on FB than have to deal With all the faff. May get a bit less. But if I can avoid the faff.. I'll do that.
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Me too!
This is an issue. Because my selling is a mix. What I sell I hold for a long time. Sometimes years. Wait for it to Appreciate. Then sell It.
With my original buys (years and years ago) the intention wasn't to trade. I just had them and they've shot up in value.
So last couple Of years I've bought a few things to hold for a couple of years then sell.
The few (2 or 3) original items have pushed into and (if I sold) would push over the 1000 trading limit with selling other stuff.
So it's really messy.
For example I've just delisted my old robot vacuum cleaner. It's clearly depreciated and isn't trading. But it adds 100 to the total and pushes ever closer to faff of SA.
What a pain.
There's a mix of a little trading
Where CGT changes to trading
And selling old tat.
If I'm understanding it correctly, if you go over 1000 technically you need to split all this out?
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I do expect ebay UK to take a bit of a hit from this actually. 1000 is easy to go over now.
Etsy too.
Just selling that old. Robot vacuum is 1/10 of it. Plus unwanted Christmas stuff. Could start the year 1/5 used.
Etsy too.
Just selling that old. Robot vacuum is 1/10 of it. Plus unwanted Christmas stuff. Could start the year 1/5 used.
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Luckily I've only sold about 15 things.
So. It wouldn't be too hard to separate.
If indeed it is confirmed that this is coming in from 1st..ie data is supplied from the and not this tax year it will be fine.
And I'll know to be aware going forward to keep under the 1k.
I believe if I was queried about 2023 to 2024 it would be easy to separate trading from old personal Stuff vs house tat. And I would be well under the 1k. In the trading.
Still unsure with this separation if being over 1k in total. But under in trading means I'd get taxed (at 40pc) on the traded stuff.
Really clear. Thanks.
Not seen it written like this before. (unless you wrote it yourself)
Yeah it is lego. It started with having some old sets (the high value ones) and seeing those go up I decided to try and buy/sell.
Tbh obviously others have had same. Idea and it hasn't panned out. Ie it's not worth my time. Especially as salary has increased making time even more important.
We are talking sometimes 30 pounds profit on a set after 2 years. Sometimes zero.
So. I've been hoarding stuff and hoping to resell Later. But with appreciation now basically non existent it's a bit of a waste Of my time. Especially with this.
But I still have lots to offload. I was hoping to ramp this up. Never even thought the 1000 was sales (otherwise I'd never have done it).
I've got sets costing 250 that after 2 years are only 270.
The only gems at my unbuilt sets from years ago that I just have. (namely my porsche and batmobile)
This is annoying (and totally my fault) for assuming 1000 was profit.
I'll simply string out the sales of lego over years now to get rid but keep under the 1000 trading.
It was a nice little thing that's turned into a burden. And now is even more of a burden.
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This is what almost every news outlet is reporting. And it clearly says "from 1st Jan 2024".
I suspect if they saw 800 quid in sales between now and April and they were diligent they'd check the rest of the tax year.
It probably wouldn't happen. I suspect it would only happen if there was automation set up.
Ie "if sold items > 800 between 1st Jan and 4th April = human check"
It would certainly have to be automated. No ones gonna trawl through that.
In reality I suspect it's mainly giving some warning this is happening tax year 2024-2025.
Who knows.. It may even just be to scare people into it.
This would be a sensible/clear way of doing it tbh.
Its worked on me! I didn't even pay attention to how much I was selling on the past!
And I probably would have carried on!
Now i know I need to be careful and keep under 1k.
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I thought gross income was the income AFTER product costs:
Net vs Gross Income | London and Zurich
Net Income and Gross Income - what's the difference? Find out in this article and use our formulae to calculate both for your business.www.londonandzurich.co.uk
"What is Gross Income?
Gross income is the total amount of income that your business has gained over a set time period, with only the cost of goods sold (COGS) subtracted.
COGS are the total cost of all the things directly related to providing the goods and/or services sold by your business. For example, the cost of manufacturing, packaging, logistics, and salaries of factory employees would all be included in COGS. But indirect costs such as marketing expenses would be excluded.
This is the formula you can use to calculate Gross Income:
Gross Income = Gross Revenue – COGS"
So if you bought £9000 worth of goods and only sold them for £10000, you have only made £1000 gross income no?
I thought in this case gross income was WITHOUT costs deducted.
Ie if you sold something for 1100 that cost 900 you breach the 1000.
Therefore you need to fill in SA.
You made 200 profit. And therefore get taxed on 200 by 20 or 40 etc percent?
I'm sure it is. Because what you posted above was what I used to think.
It basically says.. You can either use the 1000 exemption Or costs and expenses. Not both.
Say you sell 1100 of stuff and it cost 200
Your profit is 900.
Better to take the 1000 exemption and pay tax on the 100 over it.
If you sell 1100 and it cost 1050 it better to not use the 1000 as then you'd be paying tax on 100 and (1100-1000) vs 50 (1100-1050).
I thought the 1000 was profit. Because I don't get why you can sell 1000 pounds of stuff that has no cost and pay nothing. But sell something for 1001 that cost 901 and have to pay tax on 100.
I understand now. But I still don't totally get why... Expect for making it easier for HMRC
I guess people will fall into the
A) "in just making over 1000 or under 1000..i don't want to bother with SA I'll slow down/stop."
Or
B) "I'm making enough over 1000 or my profit is high enough it's worth doing SA."
Irrespective, for HMRC.. Its worth it as anyone who falls into A or B wasn't reporting anyway.. So no loss.. But anyone in B = more tax income.
I expect, if everyone reported correctly, it could be substantial
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