HMRC Advice

[JB3]

8 hours ago, Pipers said:

This makes no sense, if you make 50p per item then you pay 40% of that? I say this as most will have full time other employment.  Even  very small businesses will have running costs so that 50p could go right down.  I have to say I have never been a sole trader. 

Yes, that is absolutely correct. If you 'make' 50p - I.e., that's your profit - you'd pay your marginal rate of income tax on that as a sole trader.

 

Remember though, it is profit (or, more correctly, 'earnings') after all allowable costs, not gross profit, that is taxed.

[SilverSniper]

On 12/18/2015 at 12:11, FriedrichVonHayek said:

I phoned them this morning and they wanted me confirm I wasn't a business seller which I told them I was not.

The woman from the HMRC told me to be mindful of the tax implications when selling online.

I have now cancelled my ebay and paypal account as it really isn't worth the hassle of eBay and paypal fees and now the HMRC scrutinising your online transactions.

I would suggest that anyone selling online should think twice about selling over the internet.

I have had a pretty sleepless night!

Officially: 'buying to sell' is a business and should be registered with HMRC; the company profits are normally subject to taxation.  This also applies to people trawling Car Boot Sales and then selling those purchased items on eBay.  HMRC have eyes everywhere.

[SilverSniper]

On 12/23/2015 at 00:15, Pipers said:

 

I just had a thought what would happen it a person had a collection of say Toby jugs and then decided to sell them slowly on eBay would they get a call from the tax office? 

 

If there were selling Toby Jugs frequently, then yes the HMRC would be very interested in their piece of the pie.

[FriedrichVonHayek]

I have just had a courtesy call of the HMRC this morning asking if I am still selling online.

I have informed them I have closed down my eBay account and no longer sell online.

He told me if I was ever to start selling online again I should register with them.

[SoulUK]

27 minutes ago, FriedrichVonHayek said:

He told me if I was ever to start selling online again I should register with them.

I would tell them where to stick it. I have no doubt you made it clear to them it was all personal assets and not a business.

 

[FriedrichVonHayek]

7 minutes ago, SoulUK said:

I would tell them where to stick it. I have no doubt you made it clear to them it was all personal assets and not a business.

 

I told him that I was selling personal items but he kept using the term trading online with regard to me selling online.

I kind of get the impression that the HMRC would like everyone who sells online to register with them.

[Murph]

Ihre papiere bitte. 

[4Nines7Hills]

yes it's far easier to get tax from eBay users than google, Starbucks, Facebook, and general millionaires as they keep their money in the camon islands.

[sovereignsteve]

On 14/03/2016 at 11:01, SoulUK said:

I would tell them where to stick it. I have no doubt you made it clear to them it was all personal assets and not a business.

 

do they actually say anywhere that's it's ok to sell some personal items (at a profit) and it not be taxable?

[4Nines7Hills]

I found this and several others some specific to ebay but they are so vague on what's classed as "regularly" or "occasionally" selling items

https://www.gov.uk/working-for-yourself/what-counts-as-self-employed

[SoulUK]

18 minutes ago, sovereignsteve said:

do they actually say anywhere that's it's ok to sell some personal items (at a profit) and it not be taxable?

Most assets (excluding the home your living in, normal cars + a few others) are taxable. its all about the allowances you get.

(I believe) selling assets (PMs) brings you into CGT view, meaning legally, you should declare all sales of PMs - those at a loss as well as a gain

This is to prove if you owe any CGT within a given tax year (11k Allowance in 2016) . However in the real world, a lot of people will not bother doing a return if they've sold very little, or made very little. - This can open you up to HMRC fines if it pops up on their radar

 

The below link shows the HMRC CGT for personal tax, there's a part on it that show what is not within the tax scope

https://www.gov.uk/capital-gains-tax-personal-possessions

If we all collected clocks or watches its all CGT exempt, but we don't!

[HelpingHands]

5 hours ago, 4Nines7Hills said:

yes it's far easier to get tax from eBay users than google, Starbucks, Facebook, and general millionaires as they keep their money in the camon islands.

Like the banks are too big to fail these corporations are the new too big to apply rules to.

They just hold the government to hostage on the vast number of jobs that might be lost.

It seems similar to the EU out 'it would be bad for business if we leave' argument.  It would be bad for businesses who currently benefit from cheap labour but that's for the other thread.