Re-selling items on eBay Private Seller Account

I made £3,855 re-selling items whilst I was on a 1 year sabbatical leave with no other income.

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Hi,

I bought and re-sold accessories from China during the last tax year (April 2017-2018) on eBay with a private seller account.  However, at the same time I have been getting rid of items that I have kept in the attic using the same eBay account.  I have calculated my revenue during this tax year as being £15,850 and my profit after all costs as being £3,855 for re-selling the accessories. With regards to the items that I sold from my attic, these were old children's toys, old clothes, pottery, concert memorabilia etc. and the revenue for these was £200.  During this tax year, I was on a 1 year sabbatical leave so I was still employed by my employer but not earning an income from them, so I do have my income tax allowance of £11,500 available and I also have my capital gains allowance available.

Based on this, would I owe any tax and am I required to fill in a self assessment tax form even if I do not owe any tax?

Please note that I am not registered as a business and have simply been selling on my private seller account.  Would that still class me as a self employed sole trader for that tax year even if I was on sabbatical leave for that year and still employed by my employer?

Thank you very much for your help,

Replies (16)

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RLI
By lionofludesch
05th Jan 2019 17:28

Probably not.

But things will change when you return to work.

Keep the records in case HMRC ask.

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Replying to lionofludesch:
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By chloe.pearson
05th Jan 2019 19:09

lionofludesch wrote:

Probably not.

But things will change when you return to work.

Keep the records in case HMRC ask.

Thanks for your reply. When you say things will change when I return to work, is that because I will be earning more than my £11,500 income tax threshold when I add my job salary together with the money I earn on eBay?

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Replying to chloe.pearson:
By Paul D Utherone
06th Jan 2019 10:58

chloe.pearson wrote:

lionofludesch wrote:

Probably not.

But things will change when you return to work.

Keep the records in case HMRC ask.

Thanks for your reply. When you say things will change when I return to work, is that because I will be earning more than my £11,500 income tax threshold when I add my job salary together with the money I earn on eBay?

Yes
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By andy.partridge
06th Jan 2019 12:07

Your loose use of English makes it impossible to give an answer that you can rely upon. If you look beyond what you mean there is a lack of clarity and some ambiguity.

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Replying to andy.partridge:
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By andy.partridge
06th Jan 2019 12:41

For example, you say, 'During this tax year, I was on a 1 year sabbatical leave.'

Do you mean 'thoughout the tax year' or just part of it? What a coincidence that your sabbatical happened to span exactly the tax year.

I could go on . . .

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By Yorlasty
07th Jan 2019 20:35

Yes, you are classed as self employed when you purposely source products to resell. You should notify HMRC.

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

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Replying to Yorlasty:
By ireallyshouldknowthisbut
07th Jan 2019 17:27

Yorlasty wrote:

Yes, you are classed as self employed when you purposely source products to resell. You should notify HMRC.

Taxation is separate query really but the fact that you are self employed means that you will need to do your tax return.

@the OP, the above poster has no clue, ignore this idiotic comment.

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Replying to ireallyshouldknowthisbut:
ALISK
By atleastisoundknowledgable...
07th Jan 2019 18:07

Good job Yorlasty doesn’t advise small retailers and individuals on selling items through omnichannels such as Amazon and EBay.

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Replying to atleastisoundknowledgable...:
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By Yorlasty
07th Jan 2019 19:28

Ok perhaps my response was misleading in regards to the self assessment. That's what I've been told before when starting self employment - apologies.

First point however is correct if I'm not mistaken? Activity as such should be reported to HMRC as a self employement.

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Replying to Yorlasty:
ALISK
By atleastisoundknowledgable...
08th Jan 2019 08:05

First point is correct.

It’s wise that you’ve deleted the second part of your post - I’d advise you not to give advice on something you don’t know about.

Or Lion might say “OMG” or “Oh dear” or “Bless”. Just be glad PNL has left.

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Replying to Yorlasty:
By SteveHa
08th Jan 2019 08:12

You're wrong about the first point, too. I suggest you read TMA 1970 S.7

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By Matrix
07th Jan 2019 18:55

I disagree with most of the other posters. There is a de minimus limit of £1,000. Since your business profits exceed this limit then you will need to declare this income to HMRC. The fact that it is below the personal allowance does not mean it should not be declared.

There may be impacts on benefits if you do not declare. You may also wish to pay NI to obtain a year’s state pension entitlement.

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By bettybobbymeggie
07th Jan 2019 19:04

As far as I was aware the two conditions that drive the requirement for a return are:

1. You've been given a notice to file
2. You have tax to pay

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Replying to bettybobbymeggie:
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By Matrix
07th Jan 2019 19:30

So if a prospect came to you and said that they had made £11,500 trading on EBay then you would advise them that no action is required?

They would need to declare this income to HMRC and on their tax credits/universal credits form etc.

If the only way is to complete a tax return then so be it. I would try and give HMRC the figures over the phone and I would certainly not advise clients/prospects that there is no obligation to disclose.

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Replying to Matrix:
By SteveHa
08th Jan 2019 08:15

Except that's not what the legislation says, is it? The only event that creates a requirement to file a Return is HMRC issuing a notice to file.

You appear to be alluding more towards the S.7 requirement to notify, but this is only triggered if there's a tax liability not otherwise deducted at source.

Where there is no liability, then there is no requirement to notify.

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