Where does something go from CGT to trading?
I actually had misunderstood her (checked yesterday to confirm). Whatever happened with work expenses - that may have been a misunderstanding somewhere, and that got sorted (when she disputed it). But what did come out as a result of self-assessment was: one of the employers claimed some kind of tax relief on account of her being part-time. And as a result, they paid less tax, and she had to pay the difference. That may be fair (I don't know how the math works out), but it was 106 quid, and HMRC did take time to mail a bill for such a small amount, so I don't think it's fair to say that they won't hunt people down for peanuts.Did she correctly claim though?
The uniform cleaning discount only applies to certain perofessions
Does that mean if I sell a few items below what it costs me to buy could I claim the loss and reduce my CGT in the future.
From what I gather you'll be OK this year as it's from 1st Jan 2024.
So has the UK but it was all on trust and self reporting, so virtually nobody running these "side hustles" didI think France having been taxing EBay sellers for years, if you turn over a nthousand a year you have to declare it.
Now it would be interesting to see where the cutoff is. What if you sold 6 months later? A year later for twice the price? At which point it becomes CG?When it was bought with the intention of trading.
If you bought a painting, hung it in your house for 10 years and then sold it for 10 times the value, it'd be a CGT issue.
If you bought it today and sold it a week later for twice the amount it'd be trading.
To be honest, my example wasn't great because it's unlikely a single item would be interpreted as trading in itself, so you'd probably still only be worried about CGT anyway.Now it would be interesting to see where the cutoff is. What if you sold 6 months later? A year later for twice the price? At which point it becomes CG?
Ok, and what if you sold it 2 years later for twice the price -- but you actually listed it a week after buying, but it just took a year or two to get it sold for that amount...?
But then, would HMRC actually know or care about the date something was put up for sale vs getting sold?
What would HMRC's ruling on this be?
I think France having been taxing EBay sellers for years, if you turn over a nthousand a year you have to declare it.
So has the UK but it was all on trust and self reporting, so virtually nobody running these "side hustles" did
The actual taxes and allowances involved here aren't new, just the fact that the platforms will send your sales data to HMRC so they don't have to trust you to do it yourself.
MM specifically excludes trading and profiteering (or it did when I last used it). Since they don't actually have any involvement with the payments or transactions then I think MM will be safe for the hadful of people who still have access and use it...Does this apply to the members marketplace as well? Are OC going to dob people in?
Me too!Now this is the part that I still want to get to the bottom of. Does it mean that HMRC will not get from eBay a report for a full tax year 2023-2024, and instead will only have 4 months of data for the tax year 2023-2024 (from Jan 1 2024 to April 5 2024)? Which would mean that HMRC will not know how much one has sold from April 6 2023 to Dec 31 2024?
When it was bought with the intention of trading.
If you bought a painting, hung it in your house for 10 years and then sold it for 10 times the value, it'd be a CGT issue.
If you bought it today and sold it a week later for twice the amount it'd be trading.
Yes, it sounds like you're conducting an activity that HMRC would consider to be trading, so you probably ought to be keeping basic records to identify the things being bought and sold with aim of making some profit and the stuff you're just offloading that are second hand personal possessions.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?
Now it would be interesting to see where the cutoff is. What if you sold 6 months later? A year later for twice the price? At which point it becomes CG?
Ok, and what if you sold it 2 years later for twice the price -- but you actually listed it a week after buying, but it just took a year or two to get it sold for that amount...?
But then, would HMRC actually know or care about the date something was put up for sale vs getting sold?
What would HMRC's ruling on this be?
Yes, it sounds like you're conducting an activity that HMRC would consider to be trading, so you probably ought to be keeping basic records to identify the things being bought and sold with aim of making some profit and the stuff you're just offloading that are second hand personal possessions.
The £1000 is your trading allowance.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.
Dude… just be honest and say your running a side hustle..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?