Accepting buy it now if someone else has already bid

[GeorgeEliot]

I'm a bit out of practise with ebay so please help with some advice - I have listed an item for auction, with a relatively low starting price, have had 1 bid so far. Someone else has contacted me asking if I will do a Buy it Now.

I think the rules used to be that if someone had already bid you could not end the auction early with buy it now, is that correct?

no - you can cancel the bid and change your auction to a buy it now if you wish - it is up to you. Or if you don't want to do a buy it now then you don't have to - some sellers prefer to leave the auction to run and won't offer a buy it now price.