Ok, so i've bought some stuff which i thought was an absolute bargain and i want to sell it on to make a bit of profit. Do i have to pay tax on the profit i make?
This is just a one-off and not a steady business or guaranteed income. Once they're sold then that's it - but i was just wondering if i have to pay tax on this?
Thanks!
2007-11-06 04:39:40 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
The technical answer is
If you buy to sell on at a profit then it's classed as taxable income.
If you just sell your own possessions then it's non taxable.
So technically yeah you have to pay tax - unless you were gonna keep them and then decided you didn't want them and sold them (wink wink)
It's pretty irrelevant anyway if you're only doing a one off - don't worry about it.
and if you earn less than £5700 a year give or take a little, it's completely irrelevant
2007-11-06 04:44:55 · answer #1 · answered by Anonymous · 3⤊ 0⤋
Most of the info already given is accurate. As long as we are only talking about a few transactions, then it would be deemed to be a "hobby" and not a business.
Be careful when people talk about not having to pay tax if under £100pw or less than £5700 a year. What they are getting at is the fact that everyone can earn £5225 (2007/08) before they pay tax - however, if you are already earning over this through employment, taxable benefits, etc, then this tax free amount has already been used !! And any "profit" made through e-bay becomes taxable.
As stated earlier though, I wouldn't worry about it for a few sales.
2007-11-09 19:32:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Basically, if you buy anything to sell, you are required to declare it to the taxman. This is because it means you have engaged in commerce which is simply put, buying and selling.
So strictly speaking you should declare your profits to the taxman. But on the other hand, as you say it is a one off and something you are not looking to do on a regular basis, I don't think it is necessary to declare it, unless of course you enjoy paying tax :-) Even if you get grassed on to HMR&C, which is extremely unlikely, I doubt they will feel inclined to bother you about it. For one because there is no definite pattern of trade, you can always argue that you bought the goods for personal use or for friends and family and then chaged your mind and sold them because you no longer wanted them or your friends and family didn't like them. Besides if it makes you feel any better, depending on whose statistics you listen to, for every £1 you earn the taxman already collects between 55p - 60p from income tax when yu earn, road tax if you drive, fuel duty if you drive, fuel supplement if you fly, VAT when you spend your money, tax on your interest when you save, stamp duty if you're buying a house, inheritance tax if you leave the house to your family when you die, etc, etc, etc. So if I were you, I will claim this as a small victory because when it comes to the taxman, such victories will be few and far between.
2007-11-06 05:08:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No - you only have to pay tax if your income exceeds a certain amount a year - I believe it equates to around £100 a week.
2007-11-06 04:42:55 · answer #4 · answered by Xai 5 · 1⤊ 1⤋
Technically yes, but if it's just a one time thing, and just a couple items, in practice you wouldn't, assuming you aren't talking about thousands of dollars of profit.
2007-11-06 04:53:07 · answer #5 · answered by Judy 7 · 1⤊ 1⤋
No, Ebay businesses aren't registered as a public or private company, but as a business similar to a sole trader.
2007-11-06 05:10:49 · answer #6 · answered by Anonymous · 0⤊ 3⤋
No....your fine....just think of it as a Garage Sale (online).
2007-11-06 04:44:47 · answer #7 · answered by babidollishere 4 · 1⤊ 1⤋
No
2007-11-06 04:41:56 · answer #8 · answered by Anonymous · 1⤊ 2⤋