Posted 14 January 2024

HMRC gs Ebay

I just wanted to check, so I have loads LV, Gucci, Prada, Kenzo, Moschino luxurys used clothes/ handbags for sale on ebay. I dont have any proof, never keep receipt or anything. Most of the stuff were bought in France, Italy and Switzerland before brexit using a Norwegian bank card I no longer have account with.
Will I have to pay taxes and if taxman ask for proof and I dont have them, what will happen?
It is mostly item I no longer.
I do sell alot of my or my wifes clothes, averagaly per month make £300 worth of sales, but there is no profit, as all of tue clothes are used.
Some items were a gift too.

So what is my situation here?

Have sold in the last 5 years maybe 14k worth of my items, still have 16k for sale.
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  1. taxboy's avatar
    I recommend having a look here litrg.org.uk/lat…elp

    I know it's not the most exciting topic but I think people should do some reading about tax to improve their understanding of the way it works. For those in employment I would hazard a guess they spend more time researching their holidays than understanding their P60...even though their deductions are probably much more
    I'm not having a pop at any specific poster but given the amounts of money involved its surprising the level of active interest and understanding people take
    I highly recommend the LITRG web page for explaining issues and providing examples in a clear way
    Pilsbury12's avatar
    Thanks for the link to the flow chart. Just wondered how I prove that the various items I am selling are my own personal possessions. I don’t have any income. I’m not entitled to any benefits because due to poor health I haven’t worked for 26 years. According to the flow chart I am in the green section. Just concerned how I prove it.
  2. IAmATeaf's avatar
    Not having a go or anything but it does beg the question that if there is no profit then why keep selling?
    Rednirah's avatar
    The OP stated he is selling his old clothes. Millions of people do this, not for profit but to get some cash on their no longer needed items.
  3. bigwheels's avatar
    I’ve seen loads of info about it online, not read any as don’t apply to me.
    Martin Lewis did a talk about it last week.
    Was clear and simple advice and info.
    moneysavingexpert.com/new…rc/

    From what is says on a post don’t sell after 1st Jan 2024.
    Thats when they start reporting sales.
    community.ebay.co.uk/t5/…499
  4. Dhiraj1's avatar
    No profit, no tax. Although I am gonna find myself an accountant for sorting tax out when the letter comes.
    mutley1's avatar
    The challenge is to prove no profit
  5. mutley1's avatar
    If you make this much sales then you will be part of the reporting according to the mse link in bigwheels comment, which says from January this year, sales above 2k euro will be reported, so if you sell anything this year like you have done in the past then you will need to submit a tax return
    Willy_Wonka's avatar
    Incorrect. If you make over £1k you should fill in a tax return.

    If you do not make £1k profit then there is no requirement to do so. Although, like with anything else, the HMRC "might" ask you for information on your sales.
  6. Dhiraj1's avatar
    Can you submit tax return Aftee you receive letter from HMRC?
    mutley1's avatar
    Self assessment should be made before 31.01 each year and if you do it late then there is a penalty. If you get to the stage where HMRC writes to you, they will ask you to submit a tax return and will charge a penalty. One for late submission and one for not submitting in the first place. (edited)
  7. Misslovely's avatar
    Use your wife’s account and yours to sell.
    How can you afford all these stuff or are they good fakes?? Will you really make £300 every month for a year? If so you seem like a seller to me not casual
    mutley1's avatar
    I think this is where HMRC will determine if someone is selling for business or just their personal stuff. If you sell personal stuff, it tends to be ad hoc, not regular sales. Selling off personal stuff will generally end up being all different types of things rather than just one particular type of merchandise, which a business seller tend to specialise in.
  8. siliconbits's avatar
    Likely they will start using AI to scale.
  9. Dhiraj1's avatar
    Has anyone done the self assessment form, do you have to actually submit all reciepts or its advisable to do so?
    taxboy's avatar
    You don't need to submit receipts. Just file the form online. HMRC will ask if they want to see them. Essentially you self assess your tax and it's up to HMRC to query or challenge
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