This has already impacted myself and my partner. We have been buying and selling for 5 years as a hobby, we really enjoy antiques, collectables, vintage retro etc etc. We work full time and this was a side line/hobby which we did together and earnt a small amount for the odd meal out or a treat. We had a pitch at a selling hub and paid rent each month but have now stopped doing this hobby we loved as we are scared of getting in trouble with the HMRC. We never wanted a full time business from it as it was a fun hobby and we work in other jobs. This change means that to continue would take up too much time and hassle with receipts, petrol, ongoings, outgoings, doing tax returns etc etc and we haven't got the time or the energy to do that. It would take the joy out of it for us. We gave a months notice and cleared our pitch this week. The end of an era, such a shame.😟
Trouble is, buying to sell is trading & is classed as such. If the takings are over 1k in turnover,(not profit) we are required to declare it even though tax may not be due on it.Anyone selling personal property beyond that amount should be OK, but may be contacted to detail and prove their activity.Its worth doing legitimately if there's chance of successful selling.
So you've been diddling the tax man for a few years by telling yourself it's a hobby so doesn't count and are now annoyed that you can't get away with it any longer. Brilliant 👍🏼
@@theacefacejames no not diddling the tax man as we never earnt enough to have to pay tax but this change means we would have to prove that by filling out all the stuff the tax man needs to prove we dont make enough to pay tax, it was just for fun. It's just a shame that's all. I pay my taxes through my full time job and every other way we get taxed so never had a problem with that.
@@sarahb2652 if you weren't/aren't grossing (total sales) more than £1000 a year then you wouldn't owe any tax on this hobby. If you were/are grossing over £1000 then you should've been paying tax on the profit for all those years. Im not judging, been there myself, ...we just can't get away with any longer that's all! Nothings actually changed other than HMRCs finally caught up
Diddling a taxman who goes after the little guys trying to make ends meet with few quid here and there, stealing cake to eat the moon, ignoring the big guns……yeah fair world, NOT!
Hi Steve, thank you for your comment, the government wont rest until they have 100 percent of what we make, they already tax us 95 percent of what we make when you add it all up, tax on earnings, tax on property, tax on foot, fuel, water, even tax on rain water and suage. its all a joke, any excuse to tax us.
10 years of austerity, then a pandemic when government contracts were thrown around in their hundreds of millions, plus business grants to see businesses over the same problem, bailing out banks and yet small traders become the target for taxation. I believed that our freedoms and honesty were the things that made the UK attractive. I am no Brexit enthusiast but I believed it was to free us from burocracy. All this has increased it. The UK government is stoney broke, borrowed when it was cheap and pay back when expensive. The last 15 years have been an expensive lesson.
good post - i would however add, all the billions spent and given to a war we should not be involved with. This government (and the next Labour one) have absolutely no interest in looking after British citizens. Corrupt to the core.
hi john, thank you for your comment, which i agree with, the government should be held accountable for how they spend our money and when its wasted they should be prosecuted, they tax the little man while the super rich pay hardly anything. the uk is one of the most heavy taxed countries in the world now.
The main problem that the government have is proving that someone is buying to sell for profit,it’s totally legal to sell goods that you own,how are they going to differentiate between the two ? I think it’s a fear thing to try and get sellers to register as a business and therefore get their slice of tax.Small sellers will have nothing to worry about but people regularly selling a lot of items on eBay will certainly come under the radar of HMRC.
9 times out of 10 it's really pretty obvious even to laymen who is selling items bought in for resale and who is clearing their attic so just imagine how easy HMRC find it. They just look at the selling pattern over a given period of time and if it looks at all suspicious they may well start asking you questions. If you actually do make money out of your hobby selling and it's worth doing it properly then sort it with them. Otherwise, get out while you can... They are a lot easier to deal with than most realise and understand that people making a bit over the tax limit on Ebay etc are probably not trained accountants and, from what I have seen over the years, (almost 50 years self employed) pretty good at being fair. Best advice I can give you is be straight with them and they will be straight with you. Just one lie from you and they have no choice but to assume the rest may also be lies (just like in normal life). If you want to do it then do it right even though it takes a bit of time, and sleep easy at night! It would be fab if Walter, with his vast experience at all this, would do a video explaining stuff from step one onwards so people know what is expected of them.
@TGMarshall Thank you for your comment, tbh i agree with you hmrc are not thick and would spot things a mile off, but even so it would most likley be our place to prove its our stuff and not stock i would guess putting all the burdon on us
@Pureblood10000 thank you for your comment, while people can argue they are selling private items, they would stand out if they were trading, i can spot a traders stall at a car boot sale a mile off, i am sure hmrc are trained in such things
Still very difficult to prove,it’s not as easy as you think and it costs a lot of taxpayers money to launch an investigation and that’s also assuming platforms like eBay play ball,don’t forget eBay are going to lose a lot of money if loads of sellers pack in,it won’t be as straight forward as you might images it is.Government bodies are very inefficient and the taxman is no exception.
@@Pureblood10000 thank you very much for the reply, you are most likely right, the government is undermanned in every department that counts but anywhere that makes them money they spare no expense, the only police you see are on the roads to book drivers, yet cant get an officer out if your house is broken in too. if you was a person on a benefit and not totally legal would you take the risk that they might not bother ?
I'm a semi-retired guy selling off personal property on a private account & the remains of my business etc on a business account. The worry for me is the personal account is selling 3 times the amount of my business one, and I have 3 generations of family property to sort out to sell privately so am aware that might raise a false flag.
Thank you for your comment, honestly i have no idea how you would go about with this, if you got called out on it then just prove its inheritance, but then they would look at that as taxable most likley or captial gains tax they have a tax for everything.
The threshold of 30 items is ridiculous, where do they pluck this figure from. 30 items is nothing!. Basically every single Ebay seller will have to pay taxes on their miniscule profits. Makes me soo angry. Haven't bothered listing a single thing this year because of this dumb ruling.
Hi Jackie. Thank you for your comment, i agree the limits are so low, it doesnt mean you will get an inspection but it does mean they have to share your details with hmrc so theres always that chance. safe to say its going to hurt online sales for the companies
It will get very complicated in that all the stuff us collectors have got lying about the house we might want to get rid of we wont have any reciepts for any of it so they could say what you get is nearly all profit and you cant prove otherwise and might find yourself in court trying to argue your case
Thank you william. i agree its going to get very complicated but i have no doubt they will put the Burdon of proof on to us, and lets be honest who wants the hmrc sniffing around or dwp if your on any benefit.
Sadly, we all need to pay tax, govenment are determined to get every last penny from your pocket. Sadly, any bank transaction has a paper trail, hence why they are trying to go cashless.
Kinda see the start of it already - More collectables coming out of the charity shops now i notice ( probably a combination of people not wanting to sell it themselves and small time dealers giving it all up ) and someone else i know who did a bit of buying and selling got rid of all her gold and silver jewelry by scrapping it at one of the better paying pawn shops .
hi william. thank you for your comment, i am seeing things also similar to what you explain, its sad as for some this is the only way they can afford to heat a home and eat at the same time.
Who else noticed that while we were distracted with lockdown eBay stopped using PayPal for seller's money and put it directly into your bank account.i knew at the time it was tax reasons.
I dont get this, I keep reading different Figures (UK) £1,000 or (eBay says £1,740 limit ???) No one anywhere seems to know ? some say £1,000 others £1,740 ( Other places say £1,700 ) ..I wish someone could say *definitively*
The government counts pensioners as on benefits as well so they can scour their accounts. I think this is for the future as they want to make pensions means tested.They get more evil everyday.
He's actually wrong about the DWP looking at bank accounts. It's not as simple as what he says, he's been reading too many scare articles. They can only look into it if they suspect fraud, living abroad for long periods and/or have over 12k in savings (which the bank has to alert the DWP) which they ask the bank to clarify. They can't willy nilly look at your bank account for selling items on eBay etc unless you really are selling thousands, and claiming which would be wrong anyway. HMRC is a whole different deal which will end a lot of trading for small sellers. I've seen halfwits in other reseller TH-cam accounts saying "this is why I left eBay and trade on my own website" thinking that'll stop the HMRC, they're in for a shock.
AND any bank account they send money to... if someone claiming a DWP pension is on the hit list, then any money from there bank account to some one else can now be looked at.
Hard to make any sort of money on these platforms as it is, if and when you do they want to take it off you in tax. How will they monitor car boot sales, it’s all cash.
Thank you for your comment, i agree and think i said this in the film £1000 or 30 sales, but most resellers and hobists can do this in a week or two so wont take long.
Also that £1000 is Gross so includes, postage, fees, purchase price etc. which would account for a chunk of it and therefore brings profits down further@@AntiquesArena
hi thank you for your comment, i agree with that but alot of people i agree not all but some will be people trying to survive by making a few pounds extra on top of a benefit that isnt adequate to support them in todays cost of living crisis,
Yeah, problem is that everything is pointing towards the end of physical money, at that moment we will be defeated as a society because they will have total control.
This has already impacted myself and my partner. We have been buying and selling for 5 years as a hobby, we really enjoy antiques, collectables, vintage retro etc etc. We work full time and this was a side line/hobby which we did together and earnt a small amount for the odd meal out or a treat. We had a pitch at a selling hub and paid rent each month but have now stopped doing this hobby we loved as we are scared of getting in trouble with the HMRC. We never wanted a full time business from it as it was a fun hobby and we work in other jobs. This change means that to continue would take up too much time and hassle with receipts, petrol, ongoings, outgoings, doing tax returns etc etc and we haven't got the time or the energy to do that. It would take the joy out of it for us. We gave a months notice and cleared our pitch this week. The end of an era, such a shame.😟
Trouble is, buying to sell is trading & is classed as such. If the takings are over 1k in turnover,(not profit) we are required to declare it even though tax may not be due on it.Anyone selling personal property beyond that amount should be OK, but may be contacted to detail and prove their activity.Its worth doing legitimately if there's chance of successful selling.
So you've been diddling the tax man for a few years by telling yourself it's a hobby so doesn't count and are now annoyed that you can't get away with it any longer. Brilliant 👍🏼
@@theacefacejames no not diddling the tax man as we never earnt enough to have to pay tax but this change means we would have to prove that by filling out all the stuff the tax man needs to prove we dont make enough to pay tax, it was just for fun. It's just a shame that's all. I pay my taxes through my full time job and every other way we get taxed so never had a problem with that.
@@sarahb2652 if you weren't/aren't grossing (total sales) more than £1000 a year then you wouldn't owe any tax on this hobby. If you were/are grossing over £1000 then you should've been paying tax on the profit for all those years. Im not judging, been there myself, ...we just can't get away with any longer that's all! Nothings actually changed other than HMRCs finally caught up
Diddling a taxman who goes after the little guys trying to make ends meet with few quid here and there, stealing cake to eat the moon, ignoring the big guns……yeah fair world, NOT!
So the government charge tax and vat when the item is sold new and then they charge tax on the resale..but they want people to recycle!!!
Hi Steve, thank you for your comment, the government wont rest until they have 100 percent of what we make, they already tax us 95 percent of what we make when you add it all up, tax on earnings, tax on property, tax on foot, fuel, water, even tax on rain water and suage. its all a joke, any excuse to tax us.
10 years of austerity, then a pandemic when government contracts were thrown around in their hundreds of millions, plus business grants to see businesses over the same problem, bailing out banks and yet small traders become the target for taxation. I believed that our freedoms and honesty were the things that made the UK attractive. I am no Brexit enthusiast but I believed it was to free us from burocracy. All this has increased it. The UK government is stoney broke, borrowed when it was cheap and pay back when expensive. The last 15 years have been an expensive lesson.
good post - i would however add, all the billions spent and given to a war we should not be involved with. This government (and the next Labour one) have absolutely no interest in looking after British citizens. Corrupt to the core.
hi john, thank you for your comment, which i agree with, the government should be held accountable for how they spend our money and when its wasted they should be prosecuted, they tax the little man while the super rich pay hardly anything. the uk is one of the most heavy taxed countries in the world now.
The main problem that the government have is proving that someone is buying to sell for profit,it’s totally legal to sell goods that you own,how are they going to differentiate between the two ? I think it’s a fear thing to try and get sellers to register as a business and therefore get their slice of tax.Small sellers will have nothing to worry about but people regularly selling a lot of items on eBay will certainly come under the radar of HMRC.
9 times out of 10 it's really pretty obvious even to laymen who is selling items bought in for resale and who is clearing their attic so just imagine how easy HMRC find it. They just look at the selling pattern over a given period of time and if it looks at all suspicious they may well start asking you questions. If you actually do make money out of your hobby selling and it's worth doing it properly then sort it with them. Otherwise, get out while you can...
They are a lot easier to deal with than most realise and understand that people making a bit over the tax limit on Ebay etc are probably not trained accountants and, from what I have seen over the years, (almost 50 years self employed) pretty good at being fair. Best advice I can give you is be straight with them and they will be straight with you. Just one lie from you and they have no choice but to assume the rest may also be lies (just like in normal life). If you want to do it then do it right even though it takes a bit of time, and sleep easy at night!
It would be fab if Walter, with his vast experience at all this, would do a video explaining stuff from step one onwards so people know what is expected of them.
@TGMarshall Thank you for your comment, tbh i agree with you hmrc are not thick and would spot things a mile off, but even so it would most likley be our place to prove its our stuff and not stock i would guess putting all the burdon on us
@Pureblood10000 thank you for your comment, while people can argue they are selling private items, they would stand out if they were trading, i can spot a traders stall at a car boot sale a mile off, i am sure hmrc are trained in such things
Still very difficult to prove,it’s not as easy as you think and it costs a lot of taxpayers money to launch an investigation and that’s also assuming platforms like eBay play ball,don’t forget eBay are going to lose a lot of money if loads of sellers pack in,it won’t be as straight forward as you might images it is.Government bodies are very inefficient and the taxman is no exception.
@@Pureblood10000 thank you very much for the reply, you are most likely right, the government is undermanned in every department that counts but anywhere that makes them money they spare no expense, the only police you see are on the roads to book drivers, yet cant get an officer out if your house is broken in too. if you was a person on a benefit and not totally legal would you take the risk that they might not bother ?
I'm a semi-retired guy selling off personal property on a private account & the remains of my business etc on a business account. The worry for me is the personal account is selling 3 times the amount of my business one, and I have 3 generations of family property to sort out to sell privately so am aware that might raise a false flag.
Thank you for your comment, honestly i have no idea how you would go about with this, if you got called out on it then just prove its inheritance, but then they would look at that as taxable most likley or captial gains tax they have a tax for everything.
The threshold of 30 items is ridiculous, where do they pluck this figure from. 30 items is nothing!. Basically every single Ebay seller will have to pay taxes on their miniscule profits. Makes me soo angry. Haven't bothered listing a single thing this year because of this dumb ruling.
Hi Jackie. Thank you for your comment, i agree the limits are so low, it doesnt mean you will get an inspection but it does mean they have to share your details with hmrc so theres always that chance. safe to say its going to hurt online sales for the companies
It will get very complicated in that all the stuff us collectors have got lying about the house we might want to get rid of we wont have any reciepts for any of it so they could say what you get is nearly all profit and you cant prove otherwise and might find yourself in court trying to argue your case
Thank you william. i agree its going to get very complicated but i have no doubt they will put the Burdon of proof on to us, and lets be honest who wants the hmrc sniffing around or dwp if your on any benefit.
Sadly, we all need to pay tax, govenment are determined to get every last penny from your pocket. Sadly, any bank transaction has a paper trail, hence why they are trying to go cashless.
Which is why Bitcoin is almost back to its highest ever price. Because less trail if you know what you're doing
thank you for your comment, lets hope we never end up cashless or we are all f***ed
Kinda see the start of it already - More collectables coming out of the charity shops now i notice ( probably a combination of people not wanting to sell it themselves and small time dealers giving it all up ) and someone else i know who did a bit of buying and selling got rid of all her gold and silver jewelry by scrapping it at one of the better paying pawn shops .
hi william. thank you for your comment, i am seeing things also similar to what you explain, its sad as for some this is the only way they can afford to heat a home and eat at the same time.
Who else noticed that while we were distracted with lockdown eBay stopped using PayPal for seller's money and put it directly into your bank account.i knew at the time it was tax reasons.
I dont get this, I keep reading different Figures (UK) £1,000 or (eBay says £1,740 limit ???) No one anywhere seems to know ? some say £1,000 others £1,740 ( Other places say £1,700 ) ..I wish someone could say *definitively*
The laws are you have to report any income over 1k. However eBay have to report over 1.7 k or 100 items in a yeah
This is so unfair as I sell used goods through ebay which have already been taxed plus the 15% ebay sellers tax and now they want to tax you again?
1:25 need to correct you here.
The DWP point is ONLY for those on Social Security
The government counts pensioners as on benefits as well so they can scour their accounts. I think this is for the future as they want to make pensions means tested.They get more evil everyday.
He's actually wrong about the DWP looking at bank accounts. It's not as simple as what he says, he's been reading too many scare articles. They can only look into it if they suspect fraud, living abroad for long periods and/or have over 12k in savings (which the bank has to alert the DWP) which they ask the bank to clarify.
They can't willy nilly look at your bank account for selling items on eBay etc unless you really are selling thousands, and claiming which would be wrong anyway.
HMRC is a whole different deal which will end a lot of trading for small sellers.
I've seen halfwits in other reseller TH-cam accounts saying "this is why I left eBay and trade on my own website" thinking that'll stop the HMRC, they're in for a shock.
hi ania thats what i said in my film. but any means tested benefit can be investigated and anyone HMRC Flag as working will be a target
AND any bank account they send money to... if someone claiming a DWP pension is on the hit list, then any money from there bank account to some one else can now be looked at.
What happens if you just want to get rid of your own items. I was just about to start doing that but have concerns about doing that now.
Hard to make any sort of money on these platforms as it is, if and when you do they want to take it off you in tax. How will they monitor car boot sales, it’s all cash.
ONLY IF YOU MAKE OVER £1000 PER YEAR SELLING ON SITES THAT THE HMRC WILL BE INVOLVED
And after more than 30 sales Iirc?
Thank you for your comment, i agree and think i said this in the film £1000 or 30 sales, but most resellers and hobists can do this in a week or two so wont take long.
Also that £1000 is Gross so includes, postage, fees, purchase price etc. which would account for a chunk of it and therefore brings profits down further@@AntiquesArena
People will find a way to sidestep these fascist laws? They always do?! Cash is king ?!
Would charge you for the air you breath if they could
people cannot have the penny and the bun,
hi thank you for your comment, i agree with that but alot of people i agree not all but some will be people trying to survive by making a few pounds extra on top of a benefit that isnt adequate to support them in todays cost of living crisis,
back to selling at the booties. cash only,
Yeah, problem is that everything is pointing towards the end of physical money, at that moment we will be defeated as a society because they will have total control.
Yeah because the HMRC and DWP definitely won't start looking at those too. They have done for years where I live up north.
you are under no obligations to give your name or adress.@@-The-Darkside