Made £100 Profit on Ebay

[BAZZABAGGIES]

Then the Taxman is after you..

http://www.dailymail.co.uk/new.....l-100.html

Page 25 in todays Daily Mail..
Apparently 14,000 letters have been sent since 2012 topeople selling on Ebay. And this year they have promised to send out another 20,000 this year.

Im glad i declare my earnings and pay tax.

[Wullie]

I should claim a rebate then as I always make a loss. I'm the worst bedroom bandit of all time

[Eck]

F**k 'em, they can jail me.

[Wullie]

the biggest tax dodgers are eBay

[Tynie Topics]

Spot on Tory Government, go after the small guy whilst £billions is avoided every year by big business

http://www.independent.co.uk/n.....74873.html


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https://www.flickr.com/photos/footballprogrammes/albums

[BAZZABAGGIES]

Dangerman Expect a knock on the door.

[goonerboy]

I guess the question is where do they draw the line.

If you buy a bulk lot at auction for a few items for yourself then flog the rest on eBay is that "selling for a profit" ?

What if you are selling items from your own collection to raise some cash that you have had for a while. Hopefully what you get back will be more than you paid but you didn't buy to sell but you did make profit so is that "selling for profit" ?

Does anyone know what is taxable vs not ?

[BAZZABAGGIES]

What about car booters .. I have a contact who does 4 Car Boots a week thats 200 a year.
It has become a place for the Black market to thrive all tax free.

[RoddyN]

goonerboy wrote:

I guess the question is where do they draw the line. If you buy a bulk lot at auction for a few items for yourself then flog the rest on eBay is that "selling for a profit" ? What if you are selling items from your own collection to raise some cash that you have had for a while. Hopefully what you get back will be more than you paid but you didn't buy to sell but you did make profit so is that "selling for profit" ? Does anyone know what is taxable vs not ?

It is an unbelievably grey area. As you rightly say if you are looking for a few items in a big lot at auction, it is not unreasonable for you to sell out the balance. Given that you have to make at least 30% (buy/sell costs) unless you strike lucky it is most likely that you will come out losing but at the end of the day the intent was not to make a profit but to better your own collection. I think HMRC is looking for people who are supplementing their income by trading rather than genuine collectors. They used to look hard at dealers who buy a lot of their collections with cash but who apparently are now as white as white and declare everything to the authorities. Today Ebay makes it all a little more transparent. It is best to speak to your accountant/tax advisor who will generally give you the best advice.

[martino]

goonerboy wrote:

I guess the question is where do they draw the line. If you buy a bulk lot at auction for a few items for yourself then flog the rest on eBay is that "selling for a profit" ? What if you are selling items from your own collection to raise some cash that you have had for a while. Hopefully what you get back will be more than you paid but you didn't buy to sell but you did make profit so is that "selling for profit" ? Does anyone know what is taxable vs not ?

I am no expert but I assumed that if you buy something and then sell the same thing for a profit, then it is taxable.

If it is part of your own "collection" I suppose it depends on how you acquired your "collection".

This is nothing new. E Bay have been providing the Revenue with lists of sellers for years. I received a message from E Bay about ten years ago telling me my name had been divulged to the Revenue.

I did not hear anything from the Revenue, probably because everything I buy and sell goes through a business and is declared for tax.

The Revenue cannot chase everyone so, unless they have some clever software, they probably just pick a number of names from the list and make polite enquiries.

The publicity will have the desired effect and make some sellers put their selling on a formal business basis.

The Revenue also attend car boots trying to weed out the professional car-booters from the casual sellers.

[bisphamseasider]

goonerboy wrote:

I guess the question is where do they draw the line. If you buy a bulk lot at auction for a few items for yourself then flog the rest on eBay is that "selling for a profit" ? What if you are selling items from your own collection to raise some cash that you have had for a while. Hopefully what you get back will be more than you paid but you didn't buy to sell but you did make profit so is that "selling for profit" ? Does anyone know what is taxable vs not ?

There are loads of informative articles on the net about this subject.

This one for example lists a number of tests, or “badges of trade”, that can be applied to determine whether sales qualify as trading.

http://www.telegraph.co.uk/fin.....y-tax.html

[pompeypete]

martino wrote:

goonerboy wrote: I guess the question is where do they draw the line. If you buy a bulk lot at auction for a few items for yourself then flog the rest on eBay is that "selling for a profit" ? What if you are selling items from your own collection to raise some cash that you have had for a while. Hopefully what you get back will be more than you paid but you didn't buy to sell but you did make profit so is that "selling for profit" ? Does anyone know what is taxable vs not ? I am no expert but I assumed that if you buy something and then sell the same thing for a profit, then it is taxable. If it is part of your own "collection" I suppose it depends on how you acquired your "collection". This is nothing new. E Bay have been providing the Revenue with lists of sellers for years. I received a message from E Bay about ten years ago telling me my name had been divulged to the Revenue. I did not hear anything from the Revenue, probably because everything I buy and sell goes through a business and is declared for tax. The Revenue cannot chase everyone so, unless they have some clever software, they probably just pick a number of names from the list and make polite enquiries. The publicity will have the desired effect and make some sellers put their selling on a formal business basis. The Revenue also attend car boots trying to weed out the professional car-booters from the casual sellers.

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RESPECT..................

Flickr pages in the process of closing......

Happy to forward any info on Pompey...

[tackler7]

martino wrote:

The Revenue cannot chase everyone so, unless they have some clever software

They do have some clever software.
https://www.accountancylive.com/hmrc-investigations-how-connect-uses-big-data

[Paul Johnson]

BAZZABAGGIES wrote:

Dangerman Expect a knock on the door.

your joking arent you? He will ask that many questions they will give up

[Ronsaunders]

The key, as always, is if it is intended that a profit be made. If you buy a collection in order to obtain some items for your personal collection and then look to sell the rest due to them not being of interest, then tax is not payable unless you sell over the amount set as the chattels exemption. Chattels are defined as small value items and these can be sold without attracting income tax. If you go above the chattels exemption, which is unlikely for most people, then tax becomes payable.

If all sales of, say, programmes that you've acquired over the years needs to be accounted for in terms of income tax, then anything that is sold to Music Magpie should be too as it's exactly the same principle. With your unwanted CD's and DVD's, they were purchased, not with the intention to make profit and are sold, without Music Magpie deducting tax at source, because they also assume that the chattels exemption applies.

Naturally if, say, you bought a bundle of horrendously underpriced Watford pre war programmes off an old dear who didn't know the true value with the intention of making a really good wedge, then that would result in the income needing to be declared for the total amount regardless of whether you were paid by cheque or cash.

[Eck]

Good post Ron, I can say that I buy bulk with the intention of mostly upgrading, I usually sell at a loss as well or give stuff away. The taxman has never worried me anyway, they can spend a lot of dough chasing the f**k all that they will get out of me if they want.
If they jail me I hope i'm dubbed up with one of their colleagues, the extra blanket and pillow will come in handy.

[Wullie]

I pretty much sure the taxman can tell the difference from a collector selling a few items and a business selling thousands . They simply won't have the resources to go after the small fish. How many people have actually gone to jail ? Newspapers love to make something out of a non story.