Taxman targeting Ebay sellers

[HighlandTiger]

This could be a worrying development as it could affect many of us on here.

 

http://www.dailymail.co.uk/news/article-3104484/Now-taxman-targets-sellers-eBay-Amazon-make-profits-small-100.html

 

collectors who buy and sell goods within a short space of time, or people who make and sell crafts, could find themselves classed as a business.

 

The taxman will consider whether the seller’s primary motive is to make a profit and whether they acquired the items they are selling as a gift. 

 

 

   
 

[Pipers]

Well what did you think the Tories meant when they said they would crack down on Tax dodgers!  

 

You didn't think they would go after there mates, no they are quite happy to go after normal hard working  people.  Remember if you have kept records and you have not made money 'purchases' you can offset profits against loses.  

 

You can always do a Grants Shapps or is it er --------- I forgot his name now.

 

Its not fair though, Osbornes mates are allowed to put their money in Switzerland HSBC and get away with it, but if you sell a bit on Ebay the full weight of the Taxman  is sent to investigate.

[MikeOxlong]

"Around £9million has been raised in tax as a direct result of the clampdown on e-marketplace sellers in the last three years"

 

 

£3m a year is a raindrop in the ocean and thats before taking away the cost of the operation

 

[Hookythestacker]

Would not be surprised one iota if the recovery of nine million has cost the taxpayer ten Mike, I think Inland Revenue throw the ebay/Amazon example up every now and again just to rattle the honest

folk a little. 

[SilverPirate]

Would gold be tax free still? Could it kill off silver as a saving hedge?If there is so many add on's with silver,pay pal charges,e-bay charges,VAT on buying and selling.That is if you even reach a selling price to cover your purchase average.

I am not panicking just yet,but gold is looking a better prospect than silver in an exit plan right now.

 

Edit:  is silver VAT free if sold second hand?

[HelpingHands]

You should be okay with CGT I suppose. It wouldn't stop them trying to bill you first though.

Regarding silver, if people want to buy single coins then they will have to pay the extra you add on. Where else will they buy them from?

I thought when your sales hit a certain level ebay makes you become a business seller anyway.

[FriedrichVonHayek]

This story is trotted out every few months.

It is aimed at people re-selling full-time and not declaring to the taxman.

I have sold some coins at a loss before,does this mean I can have a rebate off the taxman,can I claim back VAT for shipping and also petrol money for going to an auction?

Also the profit on some coins after ebay and paypal fees and shipping is often a small amount.

I don't think it is worth the HMRC chasing people over a few hundred pounds.

[Cornishfarmer]

Don't tell eBay this else they will take the tax on your sales then pay the government minus their fees of course.

And rip every one off like they do with the global shipping program

[Danny-boy]

And rip every one off like they do with the global shipping program

The GSP is optional to sellers, not mandatory.

[FriedrichVonHayek]

I like the Global shipping program,any risk is passed on to eBay soon as they take delivery into their UK distribution centre.

[Cornishfarmer]

The GSP is optional to sellers, not mandatory.

You are signed up to it unless you opt out, which I lot of American sellers are unaware of. That's if they have even heard of the GSP

[Cornishfarmer]

I like the Global shipping program,any risk is passed on to eBay soon as they take delivery into their UK distribution centre.

It is if you are buying a 20% vatable item, but if you are buying gold which is not or other items that are 5% vatable you are paying it for no reason

[FriedrichVonHayek]

It is if you are buying a 20% vatable item, but if you are buying gold which is not or other items that are 5% vatable you are paying it for no reason

Sorry I meant for mitigating the risk of selling abroad.

Not a good deal for the buyer.

[Cornishfarmer]

Anyone know how the GSP works? Do they pay the tax to the UK government direct? Or the EU or if they are based in Luxembourg does it go there, or they got a funny tax system and just adds to their profits or the USA

anyone know?

[TCSilver]

In the US, Paypal sends the tax information, but only if you sell over 20,000 USD in a year. Ebay doesn't send any tax info to the IRS in the US.