Jump to content
  • The above Banner is a Sponsored Banner.

    Upgrade to Premium Membership to remove this Banner & All Google Ads. For full list of Premium Member benefits Click HERE.

  • Join The Silver Forum

    The Silver Forum is one of the largest and best loved silver and gold precious metals forums in the world, established since 2014. Join today for FREE! Browse the sponsor's topics (hidden to guests) for special deals and offers, check out the bargains in the members trade section and join in with our community reacting and commenting on topic posts. If you have any questions whatsoever about precious metals collecting and investing please join and start a topic and we will be here to help with our knowledge :) happy stacking/collecting. 21,000+ forum members and 1 million+ forum posts. For the latest up to date stats please see the stats in the right sidebar when browsing from desktop. Sign up for FREE to view the forum with reduced ads. 

Ebay UK


Recommended Posts

The new "trading allowance"

In a move to support the digital and sharing economy you can get up to £1,000 each tax year in tax-free allowances for property or trading income from 6 April 2017.

Under the new rules, sellers running small businesses online will not be taxed on the first £1,000 profit they make, which means that it does not need to be declared.

 

 

For me, this is the bit that, causes some confusion as to whether it relates to income or profit.  The various bits of guidance that I've looked at are not that clear/can be quite contradictory and I think some tax 'specialists' may not be clear. 

Link to comment
Share on other sites

5 minutes ago, MickD said:

The new "trading allowance"

In a move to support the digital and sharing economy you can get up to £1,000 each tax year in tax-free allowances for property or trading income from 6 April 2017.

Under the new rules, sellers running small businesses online will not be taxed on the first £1,000 profit they make, which means that it does not need to be declared.

 

 

For me, this is the bit that, causes some confusion as to whether it relates to income or profit.  The various bits of guidance that I've looked at are not that clear/can be quite contradictory and I think some tax 'specialists' may not be clear. 

I think if the income is above £1000 your are supposed to file a return but only if the profit is above £1000 would you have any tax to pay

Link to comment
Share on other sites

1 minute ago, Elements said:

I think if the income is above £1000 your are supposed to file a return but only if the profit is above £1000 would you have any tax to pay

I think so too, which is a real pain, if you're not making a profit or have no interest in rolling forward losses.

Link to comment
Share on other sites

The source gov.uk site makes clear mention of "gross income".  Revenue, sales, not profit. 

This makes sense, to realise a profit you need to be tracking costs and getting into deductions, starting to look a lot like trade.  The objective of the rule was to allow hobbiest to ignore tax, so you dont have to file a tax return to say you made a couple hundred quid selling rope on eBay. 

Link to comment
Share on other sites

18 minutes ago, fehk2001 said:

gold coins are vat and cgt free?

This would not exclude them from  being counted as income if you bought to sell them as a trade.

As others have mentioned if you meet the "badges of trade" then it is probably going to be counted as income

Visit my website for all my Hand Poured Silver: http://backyardbullion.com

And check out my YouTube channel 

https://www.youtube.com/backyardbullion

 

Link to comment
Share on other sites

 

8 minutes ago, Martlet said:

The source gov.uk site makes clear mention of "gross income".  Revenue, sales, not profit. 

This makes sense, to realise a profit you need to be tracking costs and getting into deductions, starting to look a lot like trade.  The objective of the rule was to allow hobbiest to ignore tax, so you dont have to file a tax return to say you made a couple hundred quid selling rope on eBay. 

Aye, so any stacker/collector who has gross income of over £1k has to theoretically file a self assessment. Sell a couple of ounces of gold and there you go............

Link to comment
Share on other sites

6 minutes ago, MickD said:

 

Aye, so any stacker/collector who has gross income of over £1k has to theoretically file a self assessment. Sell a couple of ounces of gold and there you go............

Then you are into CGT territory, because gold/silver are assets and not income.  If you make less than £11700 gain (profit) within the year, across all assets, no self assessment. 

Link to comment
Share on other sites

15 minutes ago, Martlet said:

Then you are into CGT territory, because gold/silver are assets and not income.  If you make less than £11700 gain (profit) within the year, across all assets, no self assessment. 

In this situation you would need a strong case you bought it as an asset investment not a short term thing. Things like "pride of ownership" help the case it is a capital asset, length of time you owned it helps too. Also, if you bought in bulk to get a discount might work against you. 

PayPal and eBay have already been targeted by HMRC to gather data on this, it's probably not a stretch to think they are in all our bank accounts too.

My advise to anyone selling casually for a bit of extra stacking cash is to keep very clear and concise records of the sales. In all likelihood HMRC are not going to chase everyone, but if they do it is important to have clear accounts.

Bookkeeping and accounting is probably what takes up most of my time these days, no kidding! That said, another skill learned for my CV should this whole silver pouring melarky not pan out!

Visit my website for all my Hand Poured Silver: http://backyardbullion.com

And check out my YouTube channel 

https://www.youtube.com/backyardbullion

 

Link to comment
Share on other sites

Link to comment
Share on other sites

4 minutes ago, BackyardBullion said:

Doesn't make for easy reading but that's what they're looking for.

Link to comment
Share on other sites

I am moving to pure trading coins for coins. Too much hassle to deal with this shite. I stopped selling on eBay as I approached the £1k last year, just not worth the extra hassle unless you are specifically set up to trade

New Forum Sponsor! See Items for sale here  Also on Instagram: Bargain Numismatics 

Link to comment
Share on other sites

1 hour ago, ilovesilverireallydo said:

I am moving to pure trading coins for coins. Too much hassle to deal with this shite. I stopped selling on eBay as I approached the £1k last year, just not worth the extra hassle unless you are specifically set up to trade

I'm pretty sure this falls under HMRC Bartering rules.

They will probably view it as sideways tax avoidance if not declared....

You would still need to do a self assessment.

A self assessment form is a doddle, is it worth the risk of audit/fines/prosecution?

Visit my website for all my Hand Poured Silver: http://backyardbullion.com

And check out my YouTube channel 

https://www.youtube.com/backyardbullion

 

Link to comment
Share on other sites

Given that we've just had the worst recession in living memory I don't think HMRC should be going after people doing some 'flipping' to make a few extra quid to help them get by. If it means they can do something they enjoy and don't have to sign on for benifits because of it surely that's a net gain?

I can imagine people deciding to setup a business after dabbling in this. I wonder how many people have been put off setting up a legitimate business because of the amount of complexity and bureaucracy for the privilege of having the tax man take so much.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Cookies & terms of service

We have placed cookies on your device to help make this website better. By continuing to use this site you consent to the use of cookies and to our Privacy Policy & Terms of Use