Selling on EBay- confused about new rules, can anyone help?

[ThisOrTha]

I just heard that EBay will be automatically sending details to HMRC of any sellers who have over more than 30 transactions in a calendar year and also if sales are over £1k.

I have been a bit of a fashion hoarder but set myself a challenge this year to sell 3/4 of my stuff. It was a personal challenge to have less after a significant life changing experience.

I sold things on eBay and this was over 30 transactions, around 200- ad hoc through the year, I have bulked up selling a load of stuff every few months. I have not made a profit on any of it, selling things for a lot less than I bought them for but still sold in total over £1k but a lot less than £6k.

I thought I would not be liable for capital gains tax, but now I am worried that I am wrong. Can anyone advise?

It’s not related to capital gains tax but income tag & national insurance

The ‘new rules’ aren’t really new, the difference is that businesses such as eBay will need to report to HMRC when thresholds are met

The rules are that there is an allowance of £1000 that we can generate in income without reporting to HMRC. That doesn’t mean tax needs to be paid on it but that a tax return should be made to then assess it

If you were required to complete a tax return then you wouldn’t expect to owe tax as you are selling your property on a second hand basis as opposed to buying to sell, in which case profits could be taxable

https://www.channel4.com/news/factcheck/factcheck-do-you-have-to-pay-tax-for-selling-secondhand-on-vinted-or-ebay#

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

Thank you for helping me. I think I understand it a bit better. I did fill out a tax form as I claim child benefit but need to pay some of it back, but not all. As i didn’t make any profit I didn’t declare anything as no profit to declare. Should I have? Feel a bit scared and anxious now as I am not someone trying to avoid paying tax and just feel so confused.

Don't worry OP, as long as you're selling second-hand items rather than selling for a profit you're fine

in summary if its buying new to re sell for profit then its taxable but if its just second hand then non taxable ?

Perhaps you could keep notes on each item eg Next trousers, bought spring 2020, scarf Xmas 2019 or whatever. If you were selling new it would say new with labels and be worth more so yours wont' be that.

I think the new rules are for people who buy and sell at a profit on eBay, Vinted etc. For example people who have bought items in bulk and are selling at a higher price.

You may have to fill in a self assessment form, but if you're selling secondhand clothes you bought new you won't be liable for tax. This is my take on it.

My understanding is if it's buying (new or second hand) to sell for more than you paid, it's a business and taxable.
If it's selling off your old stuff to make space for new stuff, or recoup a small amount of the original price to pay the gas bill, it's not taxable.

Yes this. It is people who are buyind and selling on to make a profit they ate targeting, not people selling their own stuff they no longer want.

So signs might be same item in multiples or multiple sizes. Lots of new with tags etc.

its for people for who are trading not clearing out.

Thank you so much everyone, panic over 🥰. I will make notes as suggested, don’t have all receipts but will have some too.

The articles above say that the reason selling second hand clothes isn’t a liability is that people have a £1000 tax allowance for trade.

The people who might get caught out are the ones who are already using that allowance elsewhere (e.g. a teacher who takes in tutoring on the weekend).

Personally I think it is going to be a total pain the ass as many aren’t used to thinking that putting a few bits on eBay is running a business especially if they are making a loss overall and don’t save every receipt for every personal purchase item as proof of the loss.

Annoyingly student loan as well as tax also becomes due.