The government taxing me for selling my old record collection Thousands of dingy pirates getting free housing and food Something is seriously fucked up here
That really is shocking. The government here made ebay and Amazon add 10% GST (like your VAT) to the purchase price if the item was international (not local) about 4 years ago. And I THINK a "business seller" on ebay - the kind that sell thousands - already have to deal with tax. But thankfully as a small fry seller we don't have any of this nonsense yet. You are right, it will result in the bargains vanishing and the items all being worth bothering with a 20% VAT. How many times can the one item be taxed? It will need a stamp card soon - tenth taxing is on the house!
It really will affect eBay in the country. It definitely will end up being hard to get a simple cheap CD unless it's a business seller and they might only cater for mainstream tastes.
Tbf it's always been if you make more than £1000 as a side hustle, they need to take costs into account anyway. I've a feeling they'll give up on most anyway as there will be no proof of buying to sell for profit, which is their target. They don't have enough staff as it is, so they'll only really chase those with sales in excess of the £12.5k personal allowance I would think.
update on my last post, i paid for an accountant and he took over the tax problem and it took him about four weeks to get it all sorted out and i received a letter from the HMRC telling me i did not owe any tax for any of the years because my accountant explained i was acting as an agent for both charities, also got proof from said charities that all money went to them. i had about 6 months of hell with the HMRC but once the accountant took over i can now breathe easy again.
The HMRC have said they are not interested in ''Dave'' selling things he has found in his attic. They are only interested in people buying and then selling for a profit. They say this is a business and I suppose it is. But there is a vast difference between a business and the layman trying to claw a few extra quid to get by. But who knows. That all said I can't see how this will work. It relies on people declaring and for you to be the unlucky one picked out at random for a check. We're talking millions of additional ''accounts'' on the HMRC database. How will they be able to deal with that?
Its impossible. Just on eBay alone there are hundreds of thousands of people making a few quid, not add Etsy, Vinted and all the others and that is easily over a million additional HMRC accounts. You may get a letter asking you to register but unless you are one of the unlucky ones who are randomly selected, it's an impossibly large task for the Inland Revenue. I think in a year or two we'll see this has made ''the problem'' HMRC has even bigger. @@steveblack-wu7mt
This law is to boost sales of properly registered businesses. For example you will now sell your old valuable items to cash converters, cex, mpb etc because why wouldn't you ? it won't be worth the headache putting it on ebay.
These days as you say you pay tax on your income and on things you buy but these days people sell items online or in pawn shops some donate to charity shops. Is it fair to pay tax every time the item is sold? I for one will not be on ebay again until all of this is sorted out as I usually buy low cost single items and it seems that this will no longer be cost effective for sellers.
I don't expect most people will get impacted. They will clamp down on real traders rather than people selling off part of their record collection. Theres a lot of reaction to this now but it'll die down, hmrc don't have the resource to chase every individual user.
@@metalmickey I mean the amount of time, cost and resource to chase down individuals for a few quid isn't going to happen. There are caveats if you sell for less than you bought its exempt, how are they going to prove that? I think only the big money sellers will really be impacted and they should have already been declaring their earnings. 🤞It won't be a big thing.
If you are just selling unwanted items that you own, or items that you have lying around your house, loft, or garage at or below what you originally paid for then you should not have to pay any tax, over 30 sales or above £1000.00 your details may be passed to HMRC but they are not interested in a private individuals selling their own possessions If you are actively going out to charity shops to buy goods with the sole purpose of reselling those items for profit then you are trading and as such you will be liable to pay tax on any profit that you make.
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*
Great how the world gets sh1ter and sh1ter each passing year. Can't enjoy a simple Sunday drive anymore or even sell anything without the retrocessions to your wallet. I did have a big stack of tshirts i was going to chuck on Vinted and Ebay but may wait now. Cheers for the tip off chief, loving the compo look!
i have been selling donated items for two charities on ebay and both charities get all the money any item sold for after the Ebay fees, ive explained this to HMRC but looks like i will now be left with the tax bill!! i wont be doing any more good deeds. when i was talking to HMRC on the phone i was told " oh dont think you will need to do a self assessment if its for charity or personal belongings"
Here's what i don't get and can't understand how this is lawful... Businesses only pay tax on profits. If i buy a bunch of stuff for £5k, and then sell it all on ebay for £4k i've lost money. So why am i getting taxed on that when i've made a loss? If a registered business makes a loss they don't pay tax. Also, i paid VAT when i brought the items in the first place. A registered business doesn't pay VAT on their purchases. I don't see how this can be lawful. What if i create and register a business and buy all of my clothes and gadgets through that business. And i then sell those items at a loss on ebay if i ever do decide to sell them. Would i have to pay tax on that? I don't think so because i've made a loss and a business only pays tax on profits.
Wow you’ve really misunderstood this whole subject and the video is full of incorrect information. There is no “30 item sale limit” that’s just the threshold (or £1700 in sales) before information gets shared with HMRC. You can still however many personal items from your loft you like and no tax would be due. If HMRC came knocking you would just have to demonstrate they were personal and that you were not trading. There are NO new tax rules. If you’ve been buying items to resell online for profit then this is a business and income tax has always been due on profit (over personal allowances) This has always been the case. Yes a lot of people have been getting away without declaring this income but now the new reporting rules will make it a bit harder
I never said anything about new tax rules. And when I said there's a limit of 30 I mean there's a limit of 30 where you won't have to pay if it's below the value threshold.
The tax law hasn't actually changed. If you are making profit then it should ALREADY be declared on your self assessment tax form as unearned income. Government are simply clamping down on traders abusing the system.
The fees buyers and seller are getting now are out of control. The discog fees are bad enough now that I have very little interest of shopping there now.
Start smashing the loss button when you complete your self assessment forms, if you are selling stuff at a loss compared to what it owes you then you can legitimately deduct it from your taxes. If I sell something on ebay and it cost me more than I have sold it for then I have made a loss on it and that will be reflected in any yearly earnings. It just means more people will complete the same outside of ebay and take cash on collection only
The only thing in this video that you got right was that you aren't an expert. lol Do your research if you earn cash online through YT or ebay etc 1/1/24 was a warning, go legit or stop. The consequences of them digging into your past online earnings if you now get flagged won't end well. A worse thing than paying your yearly tax is having to pay tax for the last few years you thought you'd got away with. I know this from experience lol
Thing is people think this is a country that is governed by the people, it isn't, I can't remember bringing this LAW into effect, who brought this LAW into effect...????? And don't forget tax on your taxed money when you die, little morbid i agree, but why should tax be taken out of ALREADY taxed money when left as a gift..??
