eBay selling over 1K

17
Posted 13th Jun 2020
Me again...
Recently I’ve cleared out my daughters wardrobe and sold a lot of baby designer clothes. My total earnings in the last 90 days is £1350, I’ve been trying to research about paying tax, but can’t find a definite answer, some are saying if it’s a one off occasion it’s ok, others are saying anything over 1K I will have to pay tax?
Anyone shed any light on this situation as I have plenty more to sell but not sure whether to!
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I’m no expert, but I can’t imagine you have any tax to pay. If you bought the items, used them then sold them on, without being a trader or a business, then I cannot see any reason you would pay tax.

Even Capital Gains Tax doesn’t kick in until £6,000, and it’s only for certain items. Items with a ‘limited lifespan’ are exempt.

This is on the Government’s own website..

“When you don’t need to pay
You don’t pay Income Tax on money you get from occasionally selling personal possessions online (but you may need to pay Capital Gains Tax).

You usually don’t pay Income Tax on anything you do where you just cover your costs, eg car pooling.”

Link - gov.uk/inc…ine
Edited by: "Diggsy" 13th Jun
No tax on selling your own clothes. So long as you didn't buy clothes to sell them on without using.
Willy_Wonka13/06/2020 23:01

No tax on selling your own clothes. So long as you didn't buy clothes to …No tax on selling your own clothes. So long as you didn't buy clothes to sell them on without using.


It may look this way as some of them she never even worn due to lockdown we never went places so didn’t take the tags off real expensive clothing just to sit in the house so some of them have been bought and now sold without using?
N29V12P9313/06/2020 23:02

It may look this way as some of them she never even worn due to lockdown …It may look this way as some of them she never even worn due to lockdown we never went places so didn’t take the tags off real expensive clothing just to sit in the house so some of them have been bought and now sold without using?



Did you buy them to sell on as a profit? No

So no tax is due regardless.
Also, re: Capital Gains Tax, if you sold something for less than you originally paid for it, there would be no gain on which to apply the CGT tax rate. It's more applicable for investments, art, etc, which may well increase in value over a period of time.
Thanks, just checking before I keep selling
If you aren't making a profit you can sell as much as you like without paying tax.
But if your turnover is above a certain level make sure you keep the receipts in case you need to prove you weren't making a profit.
If your turnover gets above a certain level it's possible that eBay will have to let HMRC know about you.
This will be based on turnover as they don't know if you made a profit.
Surely, you only pay taxes on profit?
Unless your used items sold more than their bought price then I can't why you have to pay taxes on it.
iDealYou13/06/2020 23:34

Surely, you only pay taxes on profit?


Not necessarily. If you happen to come across a £10k motor car for £5k for example you are allowed to sell it on without paying tax.

It only matters if you make a habit of it. In the case of vehicles it is 4 or above trades per year for example.

Same as it you buy a Rolex from a car boot sale for £10 & sell it on for £5k. No tax unless you are making a habit of it.
Edited by: "Willy_Wonka" 13th Jun
Willy_Wonka13/06/2020 23:51

Not necessarily. If you happen to come across a £10k motor car for £5k for …Not necessarily. If you happen to come across a £10k motor car for £5k for example you are allowed to sell it on without paying tax. It only matters if you make a habit of it. In the case of vehicles it is 4 or above trades per year for example.


You would have to declare that to HMRC. If you buy something with the intention of selling you are a trader, if you are clearing out your unwanted personal goods/clothes you are not a trader. The op doesn't have to declare anything.
PeacePipe13/06/2020 23:24

If you aren't making a profit you can sell as much as you like without …If you aren't making a profit you can sell as much as you like without paying tax.But if your turnover is above a certain level make sure you keep the receipts in case you need to prove you weren't making a profit.If your turnover gets above a certain level it's possible that eBay will have to let HMRC know about you.This will be based on turnover as they don't know if you made a profit.


Doesn't work like that, if you buy goods with the intention to sell you are a trader and you need to inform HMRC and complete a tax return. If your profits and any other wages/income are under the personal tax allowance you wont pay tax. You can't simply say i wouldn't be paying tax anyway, if you get caught you will be liable for all sorts of fines/penalties. Ebay/Amazon now report every account that fits the profile of a trader.
Edited by: "Azwipe" 14th Jun
Azwipe13/06/2020 23:57

You would have to declare that to HMRC.


No you wouldn't.
For less than £500 income per a month, a small amount like that you shouldn't need to worry. I top my income up be selling clothes and shoes and never had to pay tax.
Azwipe14/06/2020 00:01

Ebay/Amazon now report every account that fits the profile of a trader.


I'm surprised they even have HMRC's contact details.
Ferris14/06/2020 02:00

I'm surprised they even have HMRC's contact details.


How the taxman spies on everything you buy and sell online... thanks to a new law hardly anyone has noticed
thisismoney.co.uk/mon…tml
Edited by: "Azwipe" 14th Jun
Lots of the ted baker items I bought for a lot less then they are selling, simply because they are more sought out now.
For example I bought my lil girl an outfit off eBay for £11 back in September when I found out she was a girl... it just sold on eBay for £38, as they are no longer in the shop, wouldn’t this be seen as profit trading?
N29V12P9314/06/2020 03:46

Lots of the ted baker items I bought for a lot less then they are selling, …Lots of the ted baker items I bought for a lot less then they are selling, simply because they are more sought out now.For example I bought my lil girl an outfit off eBay for £11 back in September when I found out she was a girl... it just sold on eBay for £38, as they are no longer in the shop, wouldn’t this be seen as profit trading?


It’s only seen as profit ‘trading’ if you purchased them at the time with the sole intention of selling them on to make money
Edited by: "Diggsy" 14th Jun
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