Ebay - Do I have to pay tax on profits

[Trix1]

I am planning on selling a number of things on Ebay but was just wondering do you have to pay tax on the items sold?

I think the IR's view on this is if you buy stuff to sell then it is a business & you do pay tax. But if you sell old stuff then it's not

But I'm not 100% sure

And when you pay your fees to Ebay via your credit card, they include tax deductions I believe, so it's all done for you.

emmatom - surely you don't pay income tax to ebay?

Am I getting confused here? Sounds like I am. Havn't been on for a while but I remember that you have to register your card on e-bay when you start selling and they bill you every month or so for fees and I thought a bit of tax was included in that.

Could be talking a load of tosh of course!

if you buy the good with express purpose of selling to make a profit then yes, if they are yours and used or surplus then no.

IR don't chase ebayers at the moment but have wanred they will be very soon.

How would they give it to the IR in your name?
I must be a different tax

I may get this all wrong so don't take it as advice!!

I think if you sell on ebay as a business then if you generate a business profit then you would be liable to tax. This would include buying things cheap at a boot fare and then flogging them on ebay for more - if it is of a habitual and regular basis. However you need to make a profit of more than your annual tax allowance £4kish to be liable to pay tax.

For things not run as a business then the relevant taxation regime would be the capital gains tax. If you sold things on ebay for much more than they had originally cost you then you would be liable to CGT. However the annual allowance is quite high (can'r recall how much but £6k ish). It would only really hit you if you were selling art and antiques etc.

For your everyday selling something from the back of the cupboard, generally these things are sold for less than the original value, so from a tax point of view, at a loss. Therefore there is no liability!!

HTH - but be aware - I could be a hairy trucker who knows FA about taxation

I think all ebay actually charge in the way of tax is VAT, like just about any other goods or services you buy. Only you see it itemised on the Ebay invoice, whereas most of the things you buy have it hidden in the total coast.

not below £6000 PROFIT
ie if they'r things you own and are selling then its unlikely you;re making a profit per se...
Ebay have to pay VAT they pass it on through the fees.
I found this out first hand from IR about 2 mths ago as I was worried as I had being investigated by EU after paypal registered over £4k having gone through the account.