HMRC Clamping Down on Ebay etc.

[giorgio]

https://www.express.co.uk/finance/personalfinance/1849055/hmrc-tax-rule-change-side-hustle-ebay-etsy-vinted

[Posh1959]

About time too. Far too many freeloaders in this country

[oldprogs1]

Here's Mr. Happy!

[Tynie Topics]

As always, they go after the little guy whilst the Corporations and Millionaires evade/avoid tax.

"Amazon, eBay, Adobe, Google, Cisco, Facebook, Microsoft, and Apple faced UK corporation tax liabilities of £297 million in 2019. That puts the total amount of tax avoided by the companies in the UK at an estimated £1.5bn in 2019, the latest year where figures exist."
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[manchesterunitedman1]

Tynie Topics wrote:

As always, they go after the little guy whilst the Corporations and Millionaires evade/avoid tax. "Amazon, eBay, Adobe, Google, Cisco, Facebook, Microsoft, and Apple faced UK corporation tax liabilities of £297 million in 2019. That puts the total amount of tax avoided by the companies in the UK at an estimated £1.5bn in 2019, the latest year where figures exist."

Whilst i agree wholeheartedly on your above comment, there are a lot if not 1000's who sell on ebay and pay F.All tax!, some of the sellers have sold tens of 1000's yet i would wager the majority is never disclosed-that is my view. I accept there will be a few "Business" sellers who may have disclosed by virtue it is their living and not a sideline which is where the Government is making the point[all on the side]. Does not affect me but i felt it worth a shout.
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[CodeXIII]

So, i work, pay tax on my income, pay VAT on any purchases, pay tax on the fuel to visit a shop to then pay VAT on the items I bought plus VAT on parking.
a year later i decide i want to sell my old goods as used (having paid tax and VAT already) and ebay then take their massive fees and i pay VAT on the postage to post the used items out.
THEN after making some money back on MY old items i pay tax AGAIN.....

Glad to see the UK getting their priorities in order.
those pesky millionaires in the Cayman Islands on their yachts are paying their fair share of course....

[Tynie Topics]

manchesterunitedman1 wrote:

Whilst i agree wholeheartedly on your above comment, there are a lot if not 1000's who sell on ebay and pay F.All tax!, some of the sellers have sold tens of 1000's yet i would wager the majority is never disclosed-that is my view. I accept there will be a few "Business" sellers who may have disclosed by virtue it is their living and not a sideline which is where the Government is making the point[all on the side]. Does not affect me but i felt it worth a shout.

If there are those that are making a bit on the side to help with their income then fair play to them.

I'd rather the Govt (of any political persuasion) go after the corporations and multi-nationals who avoid tax in plain sight.

Anyway, a summary of the changes
https://www.bbc.co.uk/news/business-67855872
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https://www.flickr.com/photos/footballprogrammes/albums

[dereksuffolk]

This tax is on trading profit not sales revenue so you can deduct expenses before the £1000 limit is reached.
If you decide to sell some of your programme collection it would be subject to Capital gains tax not income tax. The allowance on gains is £6000 this year and reduced to £3000 for the 2024 tax year.

[colchestersid]

dereksuffolk wrote:

This tax is on trading profit not sales revenue so you can deduct expenses before the £1000 limit is reached. If you decide to sell some of your programme collection it would be subject to Capital gains tax not income tax. The allowance on gains is £6000 this year and reduced to £3000 for the 2024 tax year.

Does anyone know - if I sell one programme from my collection for £10,000 I would probably have a CGT liability

However if I make 100 individual sales from my collection of £100 each (so £10,000 in total) would i still have a potential liability?

This does actually impact me as I'm slowly selling off my collection and I'm taking in about £1000pm

[Tynie Topics]

dereksuffolk wrote:

This tax is on trading profit not sales revenue so you can deduct expenses before the £1000 limit is reached. If you decide to sell some of your programme collection it would be subject to Capital gains tax not income tax. The allowance on gains is £6000 this year and reduced to £3000 for the 2024 tax year.

What happens if your re-sale value is less than what you paid for it ie. you're £50,000 collection is now only worth £30,000? is it like you selling your car on eBay which you paid £5k for, for £3k?
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[dereksuffolk]

If your collection is worth less than the price paid you have a capital gains loss. This loss can be carried forward against future capital gains.
The car loss cannot be offset if a personal car because it is not subject to capital gains or income tax from trading. Assuming it is not a classic car you have bought as an investment so subject to capital gains.

[dereksuffolk]

On the point of 100 items. Yes, could be a tax liability but again the original cost is deducted. There are also some complicated rules around indexation for inflation in certain periods in the past.
The capital gains allowance used to be higher so more of a problem now than in the past.
If you are married your partner also has their own allowance if in the past, you had kindly gifted some programmes to them. They would need to sell in their own name to show ownership.

[sharrowblade]

Tynie Topics wrote:

I'd rather the Govt (of any political persuasion) go after the corporations and multi-nationals who avoid tax in plain sight.

Its not going to happen tho is it.

Jack the Lad selling on ebay annoys small legitimate business sellers, and rightly so.

Large Corporations and multi-nationals hold power because they say if you charge us this and that, we'll close down our UK centres and go elsewhere.
Amazon alone employ 75,000 in the Uk, they will say that we've given those 75,000 a job and they pay tax that goes into the British economy. If we close, they lose their jobs, 75,000 are suddenly paying nothing into the system but are actually taking out, with dole money.
Furthermore, no government can afford to have 75,000 flood onto the job market.

Not saying its right.....but that basically is exactly what happens
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A Sheffield United Programme guide

[Tynie Topics]

sharrowblade wrote:

Tynie Topics wrote: I'd rather the Govt (of any political persuasion) go after the corporations and multi-nationals who avoid tax in plain sight. Its not going to happen tho is it. Jack the Lad selling on ebay annoys small legitimate business sellers, and rightly so. Large Corporations and multi-nationals hold power because they say if you charge us this and that, we'll close down our UK centres and go elsewhere. Amazon alone employ 75,000 in the Uk, they will say that we've given those 75,000 a job and they pay tax that goes into the British economy. If we close, they lose their jobs, 75,000 are suddenly paying nothing into the system but are actually taking out, with dole money. Furthermore, no government can afford to have 75,000 flood onto the job market. Not saying its right.....but that basically is exactly what happens

I've personally suffered job loss at large/multi-national corporations on more than one occasion due to jobs disappearing offshore. Brexit had a particular effect on that. However, it seems moves are afoot to address tax avoidance......

https://www.ft.com/content/191d8388-c5c0-419c-95d6-918df6f09fc5

https://en.wikipedia.org/wiki/Global_minimum_corporate_tax_rate?fbclid=IwAR1-NPkXjpXuBADN7wQ4JbH2nZk6zPVn38O4AopfOhTTh2hRZswwGkJ6kDQ

As for "jack the lad" sellers, if they are truly operating as a business and evading tax then yes by all means go after them, however I rather suspect the "man in the street" is also going to get caught up in this.
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[dereksuffolk]

Doing some more reading, the Capital gains on personal collections is different to shares. You can sell items for less than £6000 without being subject to CGT. The question is do individual programmes count as a set or not. Online there is discussion around when stamps are a set or individual items. If you sell to different people it would show it is not a set. So if ebay sales on different dates to different people and each lot is less than £6000 you should be ok.
If you owned before 1 April 1982 the cost is the market value on that date.
Selling off a collection a bit at a time therefore appears ok.
https://www.gov.uk/capital-gains-tax-personal-possessions/sets