Sidehustle Tax
Discussion
What seems to me a complicated area, probably not to alot of people..
I've started buying and selling bits and pieces on Ebay and the like and typically I've missed the easy money gravy boat as the gov brought in rules for those companies this year that any seller that sells more than 30 items or more than £1000 needs to be reported to HMRC so they can send a letter with their hand out.
Given I've sold about £4k so far this year already then I'll be on the list.
As I'm buying so much of similar items I can't claim they are personal items I don't think.
My question though is that I'm buying a small bundle, keeping part of it and then selling on most of it for about what I bought it for, sometimes a bit more, sometimes a bit less. Keeping those bits for my collection. How do I work out "Profit" when the time comes at the end of the year? The bits I keep are for me so are personal items? How do you factor those into the calculation because if you look at the bulk part that I buy and then sell its cost neutral, ish.
I think I'm going to task the Mrs to do the "selling" from now on as that means the tax will only be paid at 20% rather then 40% as I'm already well in that bracket with my day job so that's a bit of saving.
This is video games by the way. Buy a console with games, keep a few games and sell the console and what games I don't need back on Ebay.
I've started buying and selling bits and pieces on Ebay and the like and typically I've missed the easy money gravy boat as the gov brought in rules for those companies this year that any seller that sells more than 30 items or more than £1000 needs to be reported to HMRC so they can send a letter with their hand out.
Given I've sold about £4k so far this year already then I'll be on the list.
As I'm buying so much of similar items I can't claim they are personal items I don't think.
My question though is that I'm buying a small bundle, keeping part of it and then selling on most of it for about what I bought it for, sometimes a bit more, sometimes a bit less. Keeping those bits for my collection. How do I work out "Profit" when the time comes at the end of the year? The bits I keep are for me so are personal items? How do you factor those into the calculation because if you look at the bulk part that I buy and then sell its cost neutral, ish.
I think I'm going to task the Mrs to do the "selling" from now on as that means the tax will only be paid at 20% rather then 40% as I'm already well in that bracket with my day job so that's a bit of saving.
This is video games by the way. Buy a console with games, keep a few games and sell the console and what games I don't need back on Ebay.
Pit Pony said:
You just need to register for self assessment and document expenditure vs sales. And then pay tax on the profit. You made a profit right? Did you buy any office equipment, travel to collect or deliver or post stuff.
Did you buy paper envelopes etc?
Or
In this financial year pay all the profit direct to a pension, so years in the future you can actually retire.
Cheers, I'm just not sure how much it's looked into. If I buy console S/N: 1234 for £150 then sell that same console for £140 does that get classed as a loss or does it get looked into that when I bought it it had 20 games and when I sold it it had 10 games? If so do they ask where those games are? The estimated value etc etc?Did you buy paper envelopes etc?
Or
In this financial year pay all the profit direct to a pension, so years in the future you can actually retire.
I already put alot into my pension and I could put any extra from this into it but at some point I'd like to earn more than £50k taxable pay haha. So I don't mind paying the tax if I have too I just don't know how I accurately calculate it!
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