Anyone understand anything about this...........................     ?

New rules mean this time around, for the first time, online platforms such as eBay and Vinted must tell HMRC about sales information from people selling 30 items or more or who earned at least £1,700.

 

 

You Pay Tax on the profit no reciept against market value

hmrc website says

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) a personal possession for £6,000 or more.

Possessions you may need to pay tax on include:

jewellery

paintings

antiques

coins and stamps

sets of things,

Selling on eBay therefore makes limited sense if the value of items is to be reported. Surely it makes more sense to sell privately, on small online platforms or negotiate a trade of some sort. Paying eBay commission is also madness when valuable items are involved - the seller loses out significantly.

 how to calculate .....the tax is the difference on what you paid a  £100 disc sells  for £125  tax on £25 @20%

no ebay fees on sellers at the moment.  ( as a private seller)  funny thing £1000 disc with no reciept  after 50 years how does that work,discogs valuation is the key...It requires book keeping.....

Just tell Hmrc to keep there big nose out 😂

5 hours ago, Becket said:

Anyone understand anything about this...........................     ?

New rules mean this time around, for the first time, online platforms such as eBay and Vinted must tell HMRC about sales information from people selling 30 items or more or who earned at least £1,700.

 

And That amount is across all Platforms so it’s £1700 divided by DC eBay . Etc 

So if you sell record for 2k is the onus on you to prove how much you paid for it ? And hence how much profit ?

believe this to be BUSINESS only not private sales  

It's your word against theirs really isn't it?

You can quite easily answer three or four simple questions at the Gov site here and come up with the answer that you have nothing to worry about. 

So, you sell records on ebay fairly regularly:

You could argue these are part of a personal collection built up over many years which you are now downsizing (they are not part of a set as such, but they are personal belongings). So no problem.

On the other hand HMRC could argue that a pattern of fairly regular sales over an extended period of time indicates you are trading. So problem.

In reality you are doing a bit of both - selling items out of a collection built up over many years, some of which has been built up by buying cheap at car boots, chazzas and the like, and some of those purchases made with the express intention of flipping for a profit (hopefully).

So it's a grey area, and many accountants websites, such as this one, don't really help clarify things.  In the end where does the burden of proof lie?