@@Bercilakdehautdesert-yt1gdonly problem is that if you are just selling personal stuff, you won't have receipts for random bits you bought god knows how many years ago so it will be impossible to work out revenues, profits etc. if you were to be questioned by HMRC.
Rules are still the same, if you sell to make a profit you are allowed up to £1000 profit before you pay any tax, if you sell your old stuff you are allowed sales of up to £6000 before you pay any tax. It is then on the hmrc to prove that you have made a profit for any tax that may be owed. So basically if you are a reseller buying items to make a profit you can make £1000 profit. If you sell your old stuff you can sell up to £6000. So if you get anything from the hmrc saying otherwise you should take them to court as they will have to prove that you made a profit.
I left ebay because of the low £1000 threshold. Just not worth the hassle. It should have been higher as many will be legitimately selling old items that have already been taxed over and over! Crazy
Re. Still being able to sell personal stuff around the house, its very easy to exceed the £1000 limit if you are always buying entertainment and collectible goods, and selling them later to buy new stuff. That's not a business but how could you prove anything? Nobody keeps receipts for every item you've ever bought in case you sell it 10 years later. Is there a concrete way to discern between hobby and business in case HMRC come calling? Some hobbies I'm into are expensive so naturally the sales rack up when I sell stuff I'm done with and want to move on to fund new purchases.
its exactly as you said how are they going to distinguish between the two i dont know and i doubt they be looking into it for case by case ( they barely have the staff to answer phonecalls ) i think its to make people think twice as for sure people are selling for upwards of 10k per year profit and aint delcaring
Im not filling it out ebay you already automatically pay taxes anyway with each listing you sell. Feel like they trying to scare people collecting easy money. Believe this is for people that do cash collection on that platform, that manipulate the system
So people are paying tax on items they've probably paid tax on ie by useing there wages which was taxed and the tax made from the item purchased the mind boggles Oh then there's the ebay fees between 15%and 17% which iam sure hmrc get a cut from
How exactly will they implement this? I know they are hiring an extra 24 staff at HMRC to chase up such sellers, but even so there could be potentially millions who are doing this sort of thing on the side. It just seems like they would not have the man power.
I am with you there I think it will work in a way to deter people I am sure there’s sellers ( private ) with 40 plus k revenue on eBay and no declaring tax I imagine that’s who they will track first
@@NikosMarko I assume they would go after the bigger sums first. But even so, the scale of the task seems unworkable. Maybe it is as you say, a deterrent or a scare tactic. Also i have to wonder how a potential incoming Labour government would effect this policy.
@@NikosMarko Maybe, but when you see all these big companies and criminals getting away will millions, you can't blame ordinary people who are just trying to get by. The limit should really be higher than 1K.
@@NikosMarko£1k per year is not generous though. I mean for instance i myself sell my personal designer items online to buy new ones. I dont know how i could maintain this now in a way that is sustainable. Fckng cows this government
I dont get this, I keep reading different Figures (UK) £1,000 or (eBay says £1,740 limit ???) No one anywhere seems to know ? some say £1,000 others £1,740 ( Other places say £1,700 ) ..I wish someone could say *Definitively*
Rules are still the same, if you sell to make a profit you are allowed up to £1000 profit before you pay any tax, if you sell your old stuff you are allowed sales of up to £6000 before you pay any tax. It is then on the hmrc to prove that you have made a profit for any tax that may be owed. So basically if you are a reseller buying items to make a profit you can make £1000 profit. If you sell your old stuff you can sell up to £6000. So if you get anything from the hmrc saying otherwise you should take them to court as they will have to prove that you made a profit.
Very interesting don’t know if you seen the new one where they will be triggering the reports to be sent over once 30 items sold or £1700 revenue . But hoping you are right with the £6000 ie they be getting the reports and then seeing second hand goods up to 6000 . Again lots of unclear decisions
What happens if you sell a higher value personal belonging like a camera or laptop? How can they claim that's income if its just selling something you happen to own that you haven't made a profit on?
such a massive grey are i think they are trying to scare people with a blanket approach but you are right how are they going to distunguish between sourced items and stuff you have in the house
If I sell any second hand items they have no legal power to tax that money as everything that’s second hand item has been already taxed at purchase so these can’t be taxed again .
I think you are referring to VAT here, what they will tax you on the profit you have earned from each sale. Hmrc have made it law that all the platforms include an eBay Amazon et cetera have to submit financial records to them.
@@cairistionamacleod3154 yes you can call it VAT , but it’s tax essentially . What profit ? I bought those items for more money than I sold them on eBay so how will they prove how much I earned or lost on each sale ?
Rules are still the same, if you sell to make a profit you are allowed up to £1000 profit before you pay any tax, if you sell your old stuff you are allowed sales of up to £6000 before you pay any tax. It is then on the hmrc to prove that you have made a profit for any tax that may be owed. So basically if you are a reseller buying items to make a profit you can make £1000 profit. If you sell your old stuff you can sell up to £6000. So if you get anything from the hmrc saying otherwise you should take them to court as they will have to prove that you made a profit.
@@markhammond2859Based on what it says on the HMRC website, even this £6000 everyone is talking about seems incorrect. It says on there that you will pay tax on any SINGLE personal item that you sell for over £6000 which involves profit, so if you bought a painting for £6k and sold it for £10k then you pay tax as it capital gains, but if you managed to sell every piece of crap in your attic for £10k then it still appears that you still don't have to pay tax (based on what it says there).
Copy and paste from the HMRC site: What you pay it on You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) a personal possession for £6,000 or more. So if there's no profit/gain, then it seems to me you can sell your old stuff as much as you like, without tax.
What about car boot sales once they get rid of the paper money we should be able to get a few tax quid out of that but whatever you do dont tax the 1% that has 95% of the dough no that would be disgusting
Martin Lewis website says - From the first of January, they started collecting data and they will have to share that by January next year which means they are SHARING DATA FOR THE CALANDER YEAR 2024
