Truth is this country is unfortunately the best in the stinking world ,we have no place to run

Its very hard! I've always said that reselling isn't a get rich quick scheme.

@@user-cv1en2qt7x it's all about turnover not profit.

It's a pathetic money grabbing country that only looks after the rich

​@@user-cv1en2qt7x but if your regularly selling lots online not just on the odd occasion but on a regular basis then they are going to question you more right?

@@user-cv1en2qt7x Wrong! It's INCOME tax, not PROFIT tax

FACTS!

Or people just aren't buying unnecessary stuff as much? Just to thought.

I have heard they make in person visits to boot sales too, sometimes maybe random but also from tip offs.

this is the way I see it. a lot of it will be automated. they will set it so the there computer systems target the bigger sellers that are not registered as businesses. these sellers will be sent an automated email or letter saying there account has been flagged and its up to them to register in the next 3 months or they will be investigated. I bit like the tv license scare mongering letters. The dedicated team wont even know a letter has been sent until there system deems it worth there while.

The team will work with the cases that have been selected by a computer. The computer will do most of the work cross-referencing and flagging people.

I thought the same thing 25 is nowhere near enough, they'll have to obviously prioritise on top of that so even if you're turning 10k a year you probably won't be significantly enough. Personally I dont think eBay is a good way to make money anyway

Bang on the mark there , not enough choice people will look else where , human nature .

Interesting perspective 🤩 On the flip side if other platforms struggle to gain the sellers to meet demand it could have the opposite effect and increase eBay’s already big following… Time will only tell I guess 🤷‍♂️

If I had something to sell and it wasn't worth the time to list it there is only one place it's going , the bin or bonefire.

This is NOT new. People have always been required to report their income and profits on trading activities that MAY lead to a tax charge. All that is happening now is that eBay, Vinted etc need must flag those potential traders to HMRC and HMRC will check whether you are trading or not. If you sell a few unwanted item from a home clear-out then you will not have a problem even if it is over £1,000

It's going to hurt them but let's face it Ebay turned a blind eye to all this going on and let people break the law by not acting when they should have (for years and years and years). How many private sellers (I mean businesses ie 500 items all new) were not giving consumers their rights and also didn't pay any tax on it. There is nothing stopping people to still sell on eBay they will just have to do it the right and fair way now.

Ebay have been reporting to HMRC for ages as well its only been pushed wider now to other platforms

Just put a separate folder in your mail for postage receipts if paid on line and a box for paper receipts if paid at the post office. 😊

@gisellematurano259 it doesn't matter to me as I use Quickbooks and Drop and Go but for everyday ppl using Ebay it's a nightmare to keep track of postage receipts for 2 years

If everyone protests to not pay tax then we're all good. Lol😊

totally agree... these c@nts are only "dedicated" to go after the working classes, trying to create some extra income to compensate for increased energy/food/petrol costs. These people are truly evil. God will judge them.

100%...they will NEVER go after the Branson and Bezos types.

​@@elliothull It's when they report your income to HMRC. This doesn't mean you're being flagged though.

@@elliothull technically yes you could do that to fly under the radar but if people started doing things like that, they would change the levels at which platforms need to declare your income to 1 item and £1 if not 1p. They could do that without warning. If you got found out for doing such a thing it would be classed as illegal tax evasion. Which in extreme cases can be 7 years in prison. So really isn't worth doing. Even if you got away with it for 10 years. They can still backdate tax bills. It's not worth the risk in my book.

I agree, £1000 turnover for selling on ebay etc is really not that great, £1000+ profit would be (in my case) a lot harder to achieve, more like £1000 loss.

Still taxable ...

Boot sales are also on HMRC hit list because of the market stall type sellers

@@webpigjohn4959 take cash ?

Hoping so!!

Cash is king and easy to hide @@atters2

To counter that though, if you register for self assessment most of them expenses become tax deductible on your tax return.

I get that mate but it’s just the whole rip off Britain that gets me boiling 🥵 You put the time and effort in for yourself only to be ripped by parliament

That's why they've started this campaign to scare people in to coming forward. They simply can't cope. Imagine the amount of tiny side hustles that go over the 1k limit that don't declare. It's simply not cost effective for the HMRC to go after them. The less you make, the further you are down the list for the HMRC to bother coming after you.

All the processing is done electronically so no real worry for them.

Artificial intelligence is coming for everyone

They have the infrastructure , don't worry . Gonna be a lot of nervous people ......

They did say they’d hired 24 extra staff 😂

It's a tax on profits, so net sales excluding not just eBay commission and P&P charges but also fuel costs for travel to source goods and office costs for processing orders. The tax officers can be really helpful in guiding what you are entitled to as a new reseller.

@@judithpride1690 And what about other costs? Supplies, equipment, etc.?

@@CJ0175 Have a chat with your tax office, they'll be able to look at your specific case and give the most accurate, up-to-date information. I'm not a tax officer or financial professional.

I'm not qualified like I said so can't give advice but I believe the £6k figure is about capital gains but some things are exempt

Appreciate that!! :)

@@RetroReselling i appreciate you being sensible, not panicking people and basically saying it is better to do it than not. I sent you a insta message as I would just like to know what level of quick books you are using?

@@RetroReselling could I also ask what version of quickbooks you use ,although I am nowhere near the same level as yourself , it started as a clear out of years of junk and now I’ve picked the odd item up to resell online .

What version do you use please

@@stuartmather5591I am using self employed which is the lowest version was advised to move to essential but I don’t know that the difference is

Most people seem to think this is a totally new tax. Which isn't the case at all. It's slightly concerning though just the amount of people who seemingly had no idea about the rules prior to all this coming out..

They are making it more difficult for people to evade tax. The rules on tax remain unchanged. Bear in mind this isn't VAT this is income tax. VAT registration is required at £85k turnover and is in addition to income tax. No one who has been correctly reporting should have to raise their prices. Personal items that maybe sold at a carboot aren't being taxed anyway so you can still use these sites as you did before. no traders are going to switch to carboots

They are making it harder to dodge tax if you are a dodgy seller. In reality, it is a good thing as that tax goes to NHS, police, schools etc. If you are selling your own stuff it still does not affect you. This should only affect people acting outside the law.

How do they know the difference. You could be selling household items off and another seller could be buying and selling household items from charity shops. They look exactly the same. Also £1000 is about the cost of a PlayStation 5 and mountain bike. Every 18 year old is gonna be classed as self employed. The government is a disgrace!

@@north584 They say it will go off patterns of selling. Constant selling daily is going to look like a business. 2 items in a month selling their PS5 and mountain bike won't look like a business.

@@north584 It will be obvious for some sellers. ie 10 new Nike trainers and multiple other listings, 1000+ items listed on ebay 95% being new. And just the quantity of items. I went to buy a controller off ebay. he has a lot of new all the same yet items selling as a private individual. For the person that just dabbles a bit in buying at boot sales and selling it won't be a problem but there are obvious sellers that would have a problem trying how to explain their situation.

Nice work!! It sucks to pay but it just means you're earning well to be in that bracket in the first place 😊👍🏻

It's only a bitch if you only just trip into the 40% level as overnight you can be bringing home significantly less than last month. Buy hey ho it is what it is I guess

Sorry if this is a silly question, however I am new to reselling, I've already declared as a sole trader but need some advise on invoices and receipts. If for example I buy from a carboot or a private seller on Facebook market and go to their place to buy and they don't want to give any personal details ie an address, name etc then how do I prove to the tax man where I got my stock from? What happens if they don't want to provide a receipt what do I do ?

Selfish satisfaction that everyone else has to file as well.Your mother should’ve swallowed you.share someone’s burden of cancer.piece of shite!

From what I gather, even if this is your main income, you would still have to declare anything above £1000 (that's turnover, even if it wasn't profitable), even if you believe it works out as lower than your non-taxable personal allowance. Always better to be safe than sorry as like is said in the video, ignorance is not an effective defence. Also to add, you usually will have to have registered by October 2024 for any earnings between April 2023 and March 2024. That usually means you should have registered in October 2023 for earnings between April 2022 and March 2023. I think if you have registered already, it rolls on year on year and I don't think you keep registering.

Is there guide as to what allowances of cost used when working from home as a side hustle ?

@@IfItAintBrokeStillFixIt The gov.uk website gives you a list or if there's something you're not sure about just Google something like "can I claim . . .on my taxes uk" and you'll get accounting websites that come up with general advice.

as a limited company you don’t have personal allowance, you would pay corp tax on profits no matter how little you turn over etc of course if you don’t make a profit then no take is due etc but would still need to file

Being a Ltd company is different to self employed as the personal allowance is for a person not a company so wouldn't apply. Check with a proper accountant

Does one still get the £12k allowance if you're full-time employed and register as a sole trader on the side? .. or has your full-time job used up that allowance regardless if you register as a sole trader? .. Would that mean any profit you make just gets added to your full-time income? .. Thanks@@RetroReselling

If you are cash basis, you would expense the full £50 in the tax year you purchased them.

I use basic cash accounting so the £50 would be an expense for that tax year

Good question. Same as - how do they know if im selling cardigan from charity shop what I bought for making profit or just getting rid of mine and my families stuff?

​@@dianavaitaite5629 they don't, thats why i thought i had read it was on ALL people selling even if you were selling your own personal stuff. I could be wrong but thats what i read. You would need to keep the receipt for that cardigan otherwise when you bought it in say New Look, just in case you decided to sell it 2 years later

no you'd need to submit a tax return first

Glad it was helpful! :)

If you are not selling as a business or self employed though, you are just selling to get rid of your own used items around the house. Quite easy to hit £1000 turnover on that as well

At any point if you bought items to sell for a profit and it exceeds £1000 within a financial year then you should be declaring it

The tax year is April 6th through to April 5 the following year

sure..course you can.,

If you sold something you bought with then intention of making a profit on for a loss then yes it goes as a loss on your self employed income NOT employed earnings

@@RetroReselling hm, all of a sudden I'm thinking I'm gonna make a profit on everything I buy! Bit of a bummer if I make a loss.

I agree, it does put me off actually buying anything (such as books), if I now have problems selling them on. Perhaps I should just use the library more

You have to put money aside for tax or risk a fine plus interest on top.

Just have a record to prove to the HMRC that you are doing the best you possible can in an environment where a vender receipt is not available, for years I keep a purchase note book recording date and place of car boot sale, money taken/ returned with to show spending. Brief list recording items purchased. I take a photo of grouped items too, but that may be overkill on my part. It’s not perfect and exactly what they want, but if you speak to them they generally say it’s better than nothing.

@@VGM-UK I agree with your comments. It's all about showing HMRC that you have taken reasonable action to keep your financial records as accurately as possible. However, I think HMRC are banking on the vast majority being too lazy to keep records..............

I make a record on quikbooks of the amount I spent, day, location etc & take a picture of the haul

QuickBooks self employed app 👍🏻

As an avid game / toy collector , I am sure you have plenty of pictures of your collection built over time. That should be plenty of proof to prove it is a personal collection and you are not a reseller.

I disagree in fact if you don’t have receipts this may prove even more that you are not a business as a business seller would generally keep their purchase receipts as a private buyer would not. I would wait to see if HMRC contact you and if they do just explain the situation. I think HMRC are going to get into a lot of problems accusing people of selling as a business when they are actually selling theirs and theirs family’s old items. I think they will only be able to prove business sellers if there are selling an extremely high yearly amount 20k +, or they are selling multiples of the same new items. HMRC are going to have issues with this they may try to bully people but if you stand your ground there is not much they can do and it will not be worth them proceeding.

Yes you're absolutely fine as it's your collection that you didn't have intention of making profit on. I believe there is a number of £6k a year on certain things like this before capital gains tax might apply but talk to a qualified accountant if unsure

This isn't correct Matthew, be careful if giving tax advice if not qualified because you could be spreading misinformation. You don't pay tax after £1000 if you've not hit the personal threshold and you don't have to keep receipts of everything in life if it's just yours

I wouldn't sell them, well not online from now on unless you know of a private collector who will pay a reasonable price in cash.(Important in cash, not a bank transfer) Of course if you don't mind getting shafted by the taxman it's best to just keep them. Another thought comes to mind is anything worth buying on ebay anymore ? Everyday items for use yes but not collectables. The problem is how can you sell the things you bought some time ago for their true price today, on ebay you can but after tax. Or to an interested collector who is genuinely interested in your item ? I go for the latter 100%

I think in your case you would be liable for Capital Gains Tax.

ThTs all you can do, have a Cash book & write down purchases, Hmrc aren’t going to scrutinise you if you are declaring, it’s the ones not declaring they’re gunning for

Just keep contemporaneous records of expenditure. HMRC don't need receipts for everything just reliable records. If you are doing your best with your returns, HMRC are very unlikely to enquire into your affairs.

Thanks guys, just been the question on my mind. I have been self employed for a few years now. Previously working in construction so I know how to fill in tax assessments etc, but just with the new venture in reselling I wanted to be clear with some things. Appreciate the replies 🙌🏻

I use Quikbooks Self Employed and when I go to a boot sale I just make a note on the app the complete amount spent, where & when with a picture of the haul all together instead of item by item :)

Recently started using QuickBooks myself, still getting used to that too. Because when adding my bank it obviously looked back on about 600 transactions so I’m currently having to sort out what’s expenses and sales etc.. but it’s going good 👍🏻

In you’re example you would record the £10 sale in you’re turnover(earnings) and pay tax on the £5 profit

There are 2 ways to do your car costs. I keep a record of each journey that I do for business, such as trips to the car boot, the post office, the charity shop etc and claim 45p per mile. For example, the nearest big car boot to me is 19 miles away. A round trip is 38 miles@ 0.45p per mile = £17.10 mileage cost. If you do it this way you can't claim for petrol, tax, insurance, MOT etc. The other way is to keep your receipts for your petrol, tax, MOT, repairs and insurance, but you can only claim the percentage that you actually use for business which is way too complicated for me so I just claim the mileage. Plus, if you go to a car boot and not find anything worth buying you can still claim for the miles you drove there and back.

Yes keep all receipts! I do basic cash accounting so just add up all incomings vs outgoings and miles are calculated at 45p per mile

​@RetroReselling l know you use Quickbooks but do you record it on a spreadsheet too?

Or in my case, buy a book for £10 and then sell for it £5 and postage of £2.70 and ... probably be easier for me to just dump the books along the charity shop.

Are you buying items with the intention of selling for a profit? If so then yes you'll need to apply for self employment through the HMRC website. You don't pay any tax until you've hit £12,570 in profit. If it's just your personal stuff you're selling then you don't need to do anything 👍🏻

Are you buying items with the intention of selling for a profit? If so then yes you'll need to apply for self employment through the HMRC website. You don't pay any tax until you've hit £12,570 in profit. If it's just your personal stuff you're selling then you don't need to do anything 👍🏻

Not sure about the airbnb figure but you can sell your kids old clothes without worrying at all about the £1000 figure as you didnt buy them to sell for a profit :)

Absolutely not, if anything you should be more careful as you already are in a tax bracket

from 1st Jan the platforms are required to share data that can go back up to 2 years

Martin Lewis website says - "From the first of January, they started collecting data and they will have to share that by January next year which means they are SHARING DATA FOR THE CALANDER YEAR 2024"@@RetroReselling

Also "Digital platforms “will be reporting annually for calendar years [rather than tax years], so the first period of reporting will be the year ended 31 December 2024, which they need to report by 31 January 2025

Not my accountant but I meant they're going to be looking back at the previous 2 years of online sales

eBay have VAT added to their fees which is normal and you have to pay tax over the personal allowance which is also normal. It's just that the online companies now HAVE to share details with hmrc

Most probably 🤣

Hopefully log their incomings and outgoings

It's always makes me laugh when people comment things sort of thing because it should be common knowledge there's things like fees, postage etc to take away. It would be a long boring video to break down every single sale every single time 🥱

You can still do reselling as a side hustle, just after £1000 turnover you have to declare yourself as self employed and fill out a tax return every year. You only pay tax on PROFIT not turnover and even then you have other expenses you can take away like fuel, fees, equipment, postage etc etc

And tax is only payable after earning £12,570 profit in a financial year (April to April)

on your profits, you probably wont make a profit on your old stuff

true but i dont get how they would determine it yknow @@theboytheycallkenny

You don't ...

If it is your personal belongings there is no tax to pay unless it is a high value item over £6000

@samanthacady4171 that's for capital gains tax so not really related.

Possibly but all the platforms now HAVE to do it instead of voluntary Im guessing

I hope it doesn't go to that level!

Facebook may become busier as a result of the yearly reports of every seller although if doing it as a business and doing your accounts it doesn’t really change what’s already been in place for years… Facebook marketplace & alike could become a chargeable service due to increased demand. I hope it doesn’t go down that route but in the short term I agree it should make markets busier.. can’t wait to get stuck into this season & hope things move the right way for this year …. Happy new year appreciation for the channel !

​@laurenceknight3293 if that's the case we have jumble trails. No need for Facebook market place it's full of time wasters.

You will be fine then, its only if you buy items with the intention to sell them at a profit. you can buy an item use it for a while and then sell it, its for people who are buying to sell for a profit and that is not what you are saying. if you have 4k of toys you have had over the years and are after clearing them out then this does not apply to you.

They're your personal collection that wasn't bought for the intention of making a profit so you're all good 😊

@@RetroReselling thank for clearing all this up once i saw the new about this it has put me in a panic mode over the last couple of days haha

Do you have receipts for all the original purchases? This is where a problem may arise. I could say exactly the same that I was selling my own collection when in fact I was sniping items from Facebook marketplace and selling them on eBay but I told everybody it was from my personal collection. If they come after people, original receipts are probably going to be key.

@@RetroReselling but then everyone could say that with second hand items.

For anyone selling with the intention of making a profit, it doesn't matter if you're signed up to eBay as a business seller or not, if you're selling to make a profit you're acting as a business

Your own stuff is fine but unsure if you're gifted things to sell

That smirk should tell you all you need to know about this bloke ...

He’s happy to buy cheap from people who aren’t paying taxes at car boots so he can sell for higher. but then goes on the moral high ground that he pays taxes on eBay, slightly hypocritical

I feel so sorry for you, this is going to crush many gig workers just to to survive the cost of living crisis

You have an account, your wife, kids, family members? Do what you have to do to provide for you and your family. Don't be scared off by these scare tactic headlines.

Don't blame me for this, I'm just clearing up confusion going around. Why would you stop making extra money for your family? You only pay tax on your profits over the £12k figure so not being able to afford it doesn't make sense. Yes I said on a selfish level it's good for me as it'll remove a lot of non reporting competition?

You can? Postage and packaging is a legitimate business and expense!

If they're your personal books, DVDs etc then you don't have to declare. If you're buying and selling them to make a profit then yes you do have to declare the income and fill out a tax return which will include your deductions such as postage, cost of goods etc

I believe this does apply to private and business sellers 🤷‍♂️

@@laurenceknight3293 I was replying to George's comment about competition from other resellers who don't pay tax leaving eBay which would be good news for us legitimate businesses. But the huge issue we have is businesses who DO pay tax selling vast amounts of products on multiple private accounts therefore avoiding distance selling laws and gaining all the benefits which a private seller gets from eBay as opposed to having a business account.

ebay report earnings to HMRC who will then chase it up with you.

No need for a business account now if they're doing this, private account is the smart way, as long as your paying tax who cares

You can be employed and self-employed ... I have an employment and two self employments

Thanks for the information. I think I'm just over the £1000 I make puppets on etsy and sell game consoles on ebay. All I can say it we need to get Risi out of parliament. Bas###d

@JamesPropmaker self employed people still will have to pay tax under a Labour government.

You can still be self employed whilst in employment. Just gets more complicated when it comes to the tax return

You can still have a personal account on ebay and be registered as a buisness and paying tax no?

@@stevioc3592 Yes you can be private seller and obviously pay tax but I think as a lot of people have been panicking about the possibility of paying tax for the first time and questioning this HMRC announcement they are most likely not to be a business seller. The private accounts do get a lot of perks such as 1,000 free listings and regularly have eBay offers of really low final value fees. I have had people tell me they wait to list high value items when they get that offer and also that they don’t think they should pay tax and they are selling thousands of pounds worth of goods.

From the fact that so many people are 'panicking' I figure that lots of people haven't been playing by the rules, which aren't changing, they've been there for quite a while.

@@jenlovesbooks My daughter said something to me last year which I actually found quite moving - she said mum it is actually a privilege to be able to pay tax and when I thought about it - so true. There are lots of people - homeless and others unable to work or do a side hustle such as eBay so we are really in a privileged position.

@@stevioc3592 I'm registered as a reselling business with the tax office whilst having a personal account on eBay (I'm very part-time with reselling).

Out of the scope of taxation

In this case you don't have to declare that income, but what do you do if HMRC see from Ebay that you have sales over £1k and come after you, how can you prove you brought those records not to resell ?? you can't especially not if those records are say 30/40 years old, it's a bit ridiculous really

@@atters2 but what do you do if HMRC see from Ebay that you have sales over £1k and come after you, how can you prove you brought those records not to resell ?? you can't especially not if those records are say 30/40 years old,

@marksimpson9815 they would have to prove you bought them for resale. Very unlikely that HMRC will be interested in small amounts anyway so most likely a moot point.

I have a huge VHS collection and have around 20,000 been collecting since 1993, i don't believe i should be taxed if i sold any of it even if it went over £1,000 in sales for individual tapes. I have videos on youtube over 10 years old showing that i was buying videos weekly and putting into my collection. Even had news stories about my collection, so surely that's proof enough that i'm not a seller in it for the money ?

If these are your personal collection you don't need to pay tax on any profits you make from selling them. Do you have receipts for the sets? Do you remember where you bought them and when (don't need the exact date but as close as). Have you photos on your phone of these lego sets (even if they're just in the background) - this can date stamp your purchases.

Wow you must be doing some turnover, are you self employed or a limited company?

@@swiftythrifter6387 self employed 👍🏼

How much do you make a year for them to take 6k!

@@oiiReAPeRzguessing over 40k

Thank you :) Yes its painful when that bill comes round but I can sleep easy at night knowing Im contributing & not getting a knock at the door from the tax man! lol

You have to declare it after £1000 with no tax to actually pay until after £12,570