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Jim Davis

HMRC and Ebay selling

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I recently read in the media that HMRC are to track down people selling items on Ebay

in order to tax the money they receive for selling second hand goods.

HMRC are after traders hiding as private sellers which makes sense.

However, it's a gray area depending on how many items a person sells and how often.

A private seller isn't responsible for paying tax on personal items sold on Ebay.

However, if a private seller sold many personal items for quite a lot of money it may

attract the attention of HMRC even though the seller isn't running a business.

I am concerned that HMRC may be trying to tax private sellers of old second hand items

they have owned for many years.

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I think if you are selling 20 items a month as grown out of clothing, old toys etc, then you will be fine.

If you are selling a 1000 items a month, they would be right to be suspicious, and while this may be ok for one month, having a thousand items every month may cause an investigation and rightly so.

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