A great summary of the rules and very well explained 👍

My understanding previously was if you are just flogging your own old clothes and books etc that wasn’t considered a business but if you are going out picking up items specifically to sell then obviously that’s a business and should be declared. So ppl pay income tax then sales tax when they buy the item and HMRC think they can take tax again when it’s flogged secondhand what a joke.

@BoffixAccountancy

2 ай бұрын

Your initial understanding is correct, nothing has changed in that respect, HMRC is just cracking down on the ones that are businesses that are profiting, should be paying taxes and are avoiding doing so. You can still sell secondhand personal items, that has no effect as you are not profiting.

@karenoliver825

2 ай бұрын

@@BoffixAccountancy but my understanding is even if I sell only my own old things if it sells for over £1,000 in a year then that will be forwarded to HMRC? I’m only selling private stuff atm but going to transition to proper business in a month or so. Will set up proper business etc.

@BoffixAccountancy

2 ай бұрын

@@karenoliver825 Yes, HMRC will be informed but you don't need to worry until you are turning a profit or running as a sole trader/business.

Where can we found out about Using home/car against expenses is there a set figure ?

@BoffixAccountancy

6 ай бұрын

This would be the use of home allowance and mileage. We will look into doing some more videos on these specifically. This one may be useful in relating to car expenses: kzread.info/dash/bejne/Zpd5p8yeqd3Pn7g.html Otherwise book a free service enquiry for detailed tax advice from our experts: bit.ly/3ycvJC8

Will HMRC be basing tax returns of the profit made per sale after you reach the threshold or the total money received after service fees/what the customer pays?

@BoffixAccountancy

5 ай бұрын

I will be total income minus expenses that will be applicable to tax.

Hi Thank you for explaining so clearly. I have a question if you please clarify it. If the private seller already is in a permanent job then what is the Tax situation. What he should do. Does this person also has to wait for 1000 pound threshold or what? Please explain. Secondly what is the procedure to inform Hmrc about your 1000 pound extra income through ebay. Thank you

@BoffixAccountancy

Ай бұрын

Please reach out to our Accounting team for a free service enquiry if you need further support: linktr.ee/Boffix You would have to complete a self-assessment tax return for any income over £1000. Some other videos on this channel may explain so check them out!

If one is just starting out as a hobbyist and not registered as a business or sole trader and has a main job income, is their personal allowance of £12,570 already used up if they earn above that? .. So for example, say you earn £3k in profit from your shop (minus expenses + the £1k allowance you're given) you're only taxed on the remaining.. so like £1,750 etc? If you registered as a Sole Trader (whilst still having your main job that is higher than the £12k personal allowance) do you then have a £12k personal allowance for becoming a sole trader? So you're able to earn up to £12k without being taxed?

@BoffixAccountancy

5 ай бұрын

Yes, the personal allowance is already used, you don't get a £1k allowance, it's just that you're allowed to earn £1k before having to register, if you earn over it will be the full amount, it will be all income minus expenses that will be taxable. And no to your second question, it is all income from any sources.

They rather do this and give benefits people frequent cost of living payments

I would like to start selling on one of the main platforms and I am not sure what option between sole trader and Ltd is suitable considering that I own properties. Thanks.

@BoffixAccountancy

13 күн бұрын

For something specific like this we recommend booking in with a member of our Accounts team to discuss: bit.ly/3ycvJC8

I was planning on moving house in a 2 - 3 years, but before I do that I'd need to have a massive clearout and I mean massive (I'm a bit of a hoarder). I have a loft full of 25 years of accumulated stuff - toys, clothes etc. I was going to sell it on Ebay, but now I can't do this. I've spent over £150,000 on this stuff over the years so if I sold it, I would not be making any profit at all. But now, I can't sell it, hardly any of it anyway, so I might as well just dump it in landfill. Also, I'm never going to buy anything from shops ever again either, because there's no way to move it on when you're done with it. I'm also never goiing to buy anything from Ebay again. So, this is going to have a ripple effect and the tax man will be much worse off. Stupid idea.

@BoffixAccountancy

5 ай бұрын

That is not the case, nothing has changed, you are selling personal items and not making a profit so it doesn't apply.

I am surprised this hasn't happened before -

Is it once you hit £1000 as of January or from before January as well

@BoffixAccountancy

6 ай бұрын

Nothing has changed in the sense that it's always been over £1000 for Tax years which are between 6th April and 5th April every year! So if you were trading 2022-2023 you would have to submit by Jan 31st 2024, (tomorrow!) If you started trading in 2023 - present you won't need to submit until after April 6th 2024 but before Jan 2025, hope that helps.

Would i have to speak with HMRC first or would the people at boffix be able to set it all up for me , new to this

@BoffixAccountancy

6 ай бұрын

Boffix can set this up for you but it would cost a fee to do so, you can get a free quote here: bit.ly/3ycvJC8

Hi there, thanks for a great video... is this per platform? E.g. I sell personal items on Vinted and eBay. Do I need to declare if I go over 30 items/ £1000 collectively?

@BoffixAccountancy

Ай бұрын

Not for personal items!

@sthomas783

Ай бұрын

@@BoffixAccountancy thank you! But if I were to sell for profit across different platforms e.g. vinted and eBay do I need to declare when I hit £1000 or 30 items per platform or collectively across all online selling I'm doing?

@BoffixAccountancy

Ай бұрын

@@sthomas783 If you are selling for profit then you need to declare that to HMRC and complete a Self-Assessment Tax Return if you are over £1000 collectivity across any platforms.

If you are registered as a private seller, and are selling your own items for less than you originally purchased them for, have owned them for over 6 months (not trading) ie you don't reguarly sell, and then sell a few items for over 1k, then you're not a trader and don't have to declare to HMRC. Am I right?

@BoffixAccountancy

6 ай бұрын

You are, but also if you go over the selling platform's own thresholds now, they will still let HMRC know.

@roxoriginal732

6 ай бұрын

So what then you got Harv in your stuff and then you have to start accounting for everything and produce receipts ect this is so wrong and you can bet it’s gonna be run by an AI BOT making decisions on who’s gone over the threshold.what if you make things from resin but are only just breaking even and getting your money back and are solely doing a hobby cos you suffer from mental health issues but at the same time this is therapeutic for you ,you spend 100£ on materials and sell on ebay for 115£ take away fees and postage and you get your money what then

@BoffixAccountancy

6 ай бұрын

@@roxoriginal732 If you are under the £1,000 limit then you don't have to declare your hobby. In your case these are still not personal items eg second-hand clothes etc. so if you did make over £1,000 then you need to let HMRC know, that doesn't mean you will get taxed necessarily, as expenses come into play as deductions and your actual profit may not be enough to need taxing.

@jayneconnors4583

4 ай бұрын

If you've already paid tax on new clothing why we paying it again?

@BoffixAccountancy

4 ай бұрын

@@jayneconnors4583 Only if you're selling to make a profit, selling/reselling as a business. This doesn't apply to personal items being sold.

Will they give data previous to January 1st 2024?

@BoffixAccountancy

2 ай бұрын

No, it's from then.

Could you explain how ebay will pass my NI number please. Ebay don't have my NI number ?

@BoffixAccountancy

5 ай бұрын

They will be asking for them and it will be a requirement to provide. If you don't provide it, your account may be suspended or frozen.

@jayneconnors4583

4 ай бұрын

Holy moley it's big bro again

This will dent ecommerce platforms

How much % do they take of each item sells, or how much is it a month

@BoffixAccountancy

6 ай бұрын

Each platform has its own fees. Tax-wise, it will be a rate dependent on your profits.

@IbrahimAli-td3wr

2 ай бұрын

@@BoffixAccountancy how will they know if you made a profit or not thank you

@BoffixAccountancy

2 ай бұрын

@@IbrahimAli-td3wr HMRC will see that income has been generated on your eBay etc and ask you to complete a Tax Return which will determine.

Hi I have become a sole trader from 1st of January but have sold a fair amount of personal items on eBay in the past since last April will I need to declare that as it was over the 1000 limit only thing is I don’t have any receipts or anything as I was just selling some personal belongings hope you can help cheers

@BoffixAccountancy

5 ай бұрын

If it's all personal then nothing to worry about, HMRC might question it because of the threshold but you can just let them know. If they do investigations then honest people have nothing to worry about, it's just people selling to make profits without declaring that they are cracking down on!

@abesmith8642

5 ай бұрын

Thanks for your help as I started in January so I need to send a tax return before April or do I need to wait not sure thank you for your help

@BoffixAccountancy

5 ай бұрын

@@abesmith8642 As you started trading in January 2024 your tax year ends on April 5th 2024 and your self-assessment tax return will be due by Jan 31st 2025 but can be filed anytime after April 6th 2024.

@sammcf

5 ай бұрын

@@BoffixAccountancyso is it 2 tax returns - from Jan to Apr 24 then Apr to Jan 25? Thanks

@BoffixAccountancy

5 ай бұрын

@@sammcf A tax year is April 6th - April 5th you have to submit and pay by the following January 31st.

If I wanted to start selling on eBay would I need to register as a business if I made over 1000?

@BoffixAccountancy

5 ай бұрын

You don't have to register as a limited company, but you will have to register as a sole trader and complete an annual tax return.

@sammcf

5 ай бұрын

@@BoffixAccountancy thanks

I dont get this, You contradict yourself, is it (UK) £1,000 or £1,740 limit ??? No one anywhere seems to know ? some say £1,000 others £1,740 ..I wish someone could say definitively

@BoffixAccountancy

Ай бұрын

£1,000 is HMRC's offical limit, so always go by that, the platforms reporting may differ on what their limit is to report to HMRC, hence £1,740.