Tax on second hand sales on ebay/ vinted
Discussion
TopTrump said:
Real vote winner this. If I want to buy a car that needs a lot of work and enjoy it for a few years- when I come to sell it I need to declare it? Is this not going to kill ebay and the like? Am I missing something or is this pretty huge?
You are missing the bit where it is for "traders" who sell for profit. Intermittent sales of private items are not affectedTherad discussing the pros and cons here already:
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
nickfrog said:
If you're not trading card then you'll be fine, and not CGT either.
The bigger picture seems reasonable as HMRC are trying to catch traders disguised as "private sellers".
But if you are selling to make a profit then most probably you are trading and any income is taxable. Even one transaction can make you a trader, if done with a view to making a profit. The bigger picture seems reasonable as HMRC are trying to catch traders disguised as "private sellers".
People selling off items they no longer use (at much less than they paid for them new) don’t have to worry.
Skeptisk said:
But if you are selling to make a profit then most probably you are trading and any income is taxable. Even one transaction can make you a trader, if done with a view to making a profit.
I sold my last car for a profit after values rocketed during covid. Not sure that makes me a trader... 
They make a bit of a show and dance about the 1k de minimus trading limit before you have to formalise your tax arrangements but I suspect the reality is that they aren't going to be interested in the slightest/have the rescources for anything less than the 6k turnover they've historically been sending letters out about to Ebay sellers. They can send out all the automated letters they want but they need to have someone to actually read and action them and follow up the ones that don't reply. There would be millions and millions of sellers on ebay and all the other platforms that would need chasing up.
If that has changed then they'll be spending an awful lot on stamps chasing people selling between 1-5k of stuff on ebay et al that don't so a tax return or self declare their income over the de minimus limit. And their 24 members of staff will be busy. Very busy.
That's not to say that things shouldn't be done properly, however, if I was selling 2 or 3 grands worth of stuff on ebay I wouldn't be having many sleepless nights over the new reporting arrangement if I had elected not to do a tax return. It's easier for them to get people to self report their income out of fear than than them actually have any teeth to come after those selling 2 or 3 grands worth of stuff on ebay.
If that has changed then they'll be spending an awful lot on stamps chasing people selling between 1-5k of stuff on ebay et al that don't so a tax return or self declare their income over the de minimus limit. And their 24 members of staff will be busy. Very busy.
That's not to say that things shouldn't be done properly, however, if I was selling 2 or 3 grands worth of stuff on ebay I wouldn't be having many sleepless nights over the new reporting arrangement if I had elected not to do a tax return. It's easier for them to get people to self report their income out of fear than than them actually have any teeth to come after those selling 2 or 3 grands worth of stuff on ebay.
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