Is The Tax Man Coming For YOU? Side Hustle Tax | DON'T Get Caught Out!
Вставка
- Опубліковано 27 тра 2024
- Register for Self Employment with HMRC www.gov.uk/register-for-self-...
💰GET £10 FREE to spend on Whatnot using my link whatnot.com/invite/retroresel...
🔁Try crosslisting platform ZipSale FREE for the first month with code RETRO
bit.ly/3lwgXWz
📷Follow
🟣Instagram / retro.reselling
🔵Facebook / georgerossretroreselling
⚫️TikTok www.tiktok.com/@retroresellin...
🛒Shop
🟡eBay www.ebay.co.uk/usr/retro.recy...
⚫️Whatnot whatnot.com/invite/retroresel...
🔴Depop www.depop.com/retrorecycling
🟠Etsy www.etsy.com/uk/shop/RetroRec...
📧Business & Promotional enquires;
retroreselling@outlook.com
🧾Amazon Affiliate Store
www.amazon.co.uk/shop/georger...
#ukreseller #thrifting #retailarbitrage
That is absolutely ridiculous... It's time to move out from this country .
Truth is this country is unfortunately the best in the stinking world ,we have no place to run
By time you’ve paid fees to PayPal, eBay, shipping and now tax whats the point. I feel sorry for the people selling a bit here and there to make £50 a week extra cos they are already struggling to pay bills with there current job. This country is a joke. Low hanging fruit is about right.
Its very hard! I've always said that reselling isn't a get rich quick scheme.
@@user-cv1en2qt7x it's all about turnover not profit.
It's a pathetic money grabbing country that only looks after the rich
@@user-cv1en2qt7x but if your regularly selling lots online not just on the odd occasion but on a regular basis then they are going to question you more right?
@@user-cv1en2qt7x Wrong! It's INCOME tax, not PROFIT tax
Why doesn't the HMRC tax all the offshore havens and tax dodgers at City of London Corporation and not the struggling and poor in our country!
They need to do this to the rich not us, we're buying to survive not to be richer
FACTS!
A team of 25 investigators they’ll need a team of 25,000 - eBay has millions of Uk people selling items no chance can investigate
Be easier charge eBay and Amazon proper taxes and not the pittance they pay
this is the way I see it. a lot of it will be automated. they will set it so the there computer systems target the bigger sellers that are not registered as businesses. these sellers will be sent an automated email or letter saying there account has been flagged and its up to them to register in the next 3 months or they will be investigated. I bit like the tv license scare mongering letters. The dedicated team wont even know a letter has been sent until there system deems it worth there while.
The team will work with the cases that have been selected by a computer. The computer will do most of the work cross-referencing and flagging people.
I thought the same thing 25 is nowhere near enough, they'll have to obviously prioritise on top of that so even if you're turning 10k a year you probably won't be significantly enough. Personally I dont think eBay is a good way to make money anyway
Hopefully this sends people back to selling at boot sales, on Facebook groups etc and depop/vinted see massive decline in their use. Absolute disgrace. Thousands more tonnes of clothes back to landfills in the next few years
Or people just aren't buying unnecessary stuff as much? Just to thought.
I have heard they make in person visits to boot sales too, sometimes maybe random but also from tip offs.
So Phillip Green sits on one of his yachts in a tax haven having avoided millions while Mrs Jones empties her draws and gets a tax bill. One how’s they use a light hand and go for obvious traders.
There are 6 million eBay sellers in the UK excluding amazon Vinted Etc.. How will they keep track of them?
Before anyone says typical Tories Conservatives are typically supposed to be low tax individuals small government low tax this government is starting to show that they are quite happy to follow more socialist ways of government and authoritarianism don't think labour will be any better!
Scare tactics so people come forwed and admit to whst they have been doing a team of 20 surely cant catch everyone
A dedicated team of people going after small-time sellers. What a country. If it was about those taking the mickey, the threshold would be more than a poxy 30 items/ £1k per year.
totally agree... these c@nts are only "dedicated" to go after the working classes, trying to create some extra income to compensate for increased energy/food/petrol costs. These people are truly evil. God will judge them.
100%...they will NEVER go after the Branson and Bezos types.
@@elliothull It's when they report your income to HMRC. This doesn't mean you're being flagged though.
@@elliothull technically yes you could do that to fly under the radar but if people started doing things like that, they would change the levels at which platforms need to declare your income to 1 item and £1 if not 1p. They could do that without warning. If you got found out for doing such a thing it would be classed as illegal tax evasion. Which in extreme cases can be 7 years in prison. So really isn't worth doing. Even if you got away with it for 10 years. They can still backdate tax bills. It's not worth the risk in my book.
I agree, £1000 turnover for selling on ebay etc is really not that great, £1000+ profit would be (in my case) a lot harder to achieve, more like £1000 loss.
This could have a adverse effect for any resellers selling on these platforms without them realising it. Fewer sellers could mean people stop going to these sites to buy itiems, no traffic means they become ghostowns and then they eventually die.
Bang on the mark there , not enough choice people will look else where , human nature .
Interesting perspective 🤩 On the flip side if other platforms struggle to gain the sellers to meet demand it could have the opposite effect and increase eBay’s already big following… Time will only tell I guess 🤷♂️
If I had something to sell and it wasn't worth the time to list it there is only one place it's going , the bin or bonefire.
This is NOT new. People have always been required to report their income and profits on trading activities that MAY lead to a tax charge. All that is happening now is that eBay, Vinted etc need must flag those potential traders to HMRC and HMRC will check whether you are trading or not. If you sell a few unwanted item from a home clear-out then you will not have a problem even if it is over £1,000
It's going to hurt them but let's face it Ebay turned a blind eye to all this going on and let people break the law by not acting when they should have (for years and years and years). How many private sellers (I mean businesses ie 500 items all new) were not giving consumers their rights and also didn't pay any tax on it. There is nothing stopping people to still sell on eBay they will just have to do it the right and fair way now.
My brother was literally telling me about this earlier at work. They don’t want anyone earning anything extra let alone a healthy hustle on the side. 😜 stay blessed geez ☝🏼❤️🤜🏼
They've got to find a way to pay for all the scroungers to stay in 4 star hotels, who are coming across the English Channel.
Also if you do intend to spend your time and money to hunt in various places for items to make a bit of extra cash. Here is the tax breakdown
1 taxed on your earnings
2 taxed on your fuel
3 taxed on food for the day
4 taxed if you smoke on your hunting
5 taxed on the items bought on the high street
6 taxed on selling and listing fees
7 taxed on postage
And then they want to TAX YOU
Bit of a disgustingly greedy pattern forming here 🤬
To counter that though, if you register for self assessment most of them expenses become tax deductible on your tax return.
I get that mate but it’s just the whole rip off Britain that gets me boiling 🥵
You put the time and effort in for yourself only to be ripped by parliament
Soon the tax man will be at the car boots trying to squeeze the little guys
What annoys me is the turnover figures will include postage so for those not tax registered it will look worse than it is and if they aren't using quickbooks they will have to show postage receipts to prove their turnover isn't as high. Ebay fees on postage annoys me as well.... humph. Rant over!
Ebay have been reporting to HMRC for ages as well its only been pushed wider now to other platforms
Just put a separate folder in your mail for postage receipts if paid on line and a box for paper receipts if paid at the post office. 😊
@gisellematurano259 it doesn't matter to me as I use Quickbooks and Drop and Go but for everyday ppl using Ebay it's a nightmare to keep track of postage receipts for 2 years
If everyone protests to not pay tax then we're all good. Lol😊
Also I’m not convinced HMRC have the infrastructure themselves to cope with all this extra work they have created for themselves .
That's why they've started this campaign to scare people in to coming forward. They simply can't cope. Imagine the amount of tiny side hustles that go over the 1k limit that don't declare. It's simply not cost effective for the HMRC to go after them. The less you make, the further you are down the list for the HMRC to bother coming after you.
All the processing is done electronically so no real worry for them.
Artificial intelligence is coming for everyone
They have the infrastructure , don't worry . Gonna be a lot of nervous people ......
They did say they’d hired 24 extra staff 😂
Hopefully, it will drive more sellers back to boot sales!
Still taxable ...
Boot sales are also on HMRC hit list because of the market stall type sellers
@@webpigjohn4959 take cash ?
Hoping so!!
Cash is king and easy to hide @@atters2
I think ebay and other platforms will lose a lot of customers
Apparently they have spent millions on a computer programme that will go through the info sent into them, cross reference the names with the tax records and flag anyone not putting in a return.
They have employed 27 tax experts to work on the flagged cases.
They expect to get the cost of the set up back within 5 years. (Taxes paid and fines)
It's a win win for them.
I'm kinda screwed because the account I have is in my name but my wife runs the businesst. Hopefully Ebay will help but I ain't holding my breath.
This is the most sensible and realistic video I have seen even compared to financial advisors on the subject.
Currently I’m using quick books and reporting mine as I’m part time with a full time job
Appreciate that!! :)
@@RetroReselling i appreciate you being sensible, not panicking people and basically saying it is better to do it than not. I sent you a insta message as I would just like to know what level of quick books you are using?
@@RetroReselling could I also ask what version of quickbooks you use ,although I am nowhere near the same level as yourself , it started as a clear out of years of junk and now I’ve picked the odd item up to resell online .
What version do you use please
@@stuartmather5591I am using self employed which is the lowest version was advised to move to essential but I don’t know that the difference is
Listen if your earning a substantial amount you should be paying tax.
Most people do it as more of a hobby maybe making £100 per month.
Instead of chasing tax dodging big business chase poorer people who cant fight back.
I hate this country so much.
I'm right slap bang in the middle of my tax return which I should have done ages ago, it gives me selfish satisfaction that other people will have to do tax returns. I work full time and resell as self employed so it is far more complex than just being a self employed reseller. My reselling gets me the 40% tax bracket so you need to do your homework on what you can offset. Happy New Year George and good video !
Nice work!! It sucks to pay but it just means you're earning well to be in that bracket in the first place 😊👍🏻
It's only a bitch if you only just trip into the 40% level as overnight you can be bringing home significantly less than last month. Buy hey ho it is what it is I guess
Sorry if this is a silly question, however I am new to reselling, I've already declared as a sole trader but need some advise on invoices and receipts. If for example I buy from a carboot or a private seller on Facebook market and go to their place to buy and they don't want to give any personal details ie an address, name etc then how do I prove to the tax man where I got my stock from? What happens if they don't want to provide a receipt what do I do ?
Selfish satisfaction that everyone else has to file as well.Your mother should’ve swallowed you.share someone’s burden of cancer.piece of shite!
Follow-up videos on this in the near future would be very helpful. Especially if the self-declared taxing can be done through the HMRC App and if the yax threshhold account for total sells, or net sells (excluding ebay commision/P&P charges).
It's a tax on profits, so net sales excluding not just eBay commission and P&P charges but also fuel costs for travel to source goods and office costs for processing orders. The tax officers can be really helpful in guiding what you are entitled to as a new reseller.
@@judithpride1690 And what about other costs? Supplies, equipment, etc.?
@@CJ0175 Have a chat with your tax office, they'll be able to look at your specific case and give the most accurate, up-to-date information. I'm not a tax officer or financial professional.
The tax man owes me £150. It's very difficult to get your money back off of him. Any advice would be appreciated. Thanks
Interesting stuff. They’re making it more and more difficult for people to survive.
I’m in the Channel Islands so this won’t affect me personally as all we have to do is pre pay the VAT which eBay does automatically and sends to HMRC anyway.
Just out of curiosity, will this mean people may have to increase their prices a bit?
I can see carboots becoming booming again as much easier to just get rid of stuff that way it would appear.
Thanks and great video!
They are making it more difficult for people to evade tax. The rules on tax remain unchanged. Bear in mind this isn't VAT this is income tax. VAT registration is required at £85k turnover and is in addition to income tax. No one who has been correctly reporting should have to raise their prices. Personal items that maybe sold at a carboot aren't being taxed anyway so you can still use these sites as you did before. no traders are going to switch to carboots
They are making it harder to dodge tax if you are a dodgy seller. In reality, it is a good thing as that tax goes to NHS, police, schools etc. If you are selling your own stuff it still does not affect you. This should only affect people acting outside the law.
How do they know the difference. You could be selling household items off and another seller could be buying and selling household items from charity shops. They look exactly the same.
Also £1000 is about the cost of a PlayStation 5 and mountain bike. Every 18 year old is gonna be classed as self employed. The government is a disgrace!
@@north584 They say it will go off patterns of selling. Constant selling daily is going to look like a business. 2 items in a month selling their PS5 and mountain bike won't look like a business.
@@north584 It will be obvious for some sellers. ie 10 new Nike trainers and multiple other listings, 1000+ items listed on ebay 95% being new. And just the quantity of items.
I went to buy a controller off ebay. he has a lot of new all the same yet items selling as a private individual.
For the person that just dabbles a bit in buying at boot sales and selling it won't be a problem but there are obvious sellers that would have a problem trying how to explain their situation.
How do you track and prove purchases from the carboot without a receipt to ensure they're tax deductable?
You still have to pay tax on personal items over 6 k?, how can they prove if your selling personals are not.
I'm not qualified like I said so can't give advice but I believe the £6k figure is about capital gains but some things are exempt
The main thing to remember is claim for everything that you can. Phone/broadband, 45p a mile for car use, Utilities Monthly Allowance for the cost of gas/electric while you are working from home and keep a record of everything you buy without a receipt such as what you bought, where you bought it and what you paid. Don't forget cost of postage, packaging, eBay (or any other site) fees. I've done my own taxes for years and yes, it is a bit of a clart on, but if you've kept a record of everything that you've had coming in and going out for the year it makes doing them so much easier. If it keeps HMRC off your back all the better.
Is there guide as to what allowances of cost used when working from home as a side hustle ?
@@IfItAintBrokeStillFixIt The gov.uk website gives you a list or if there's something you're not sure about just Google something like "can I claim . . .on my taxes uk" and you'll get accounting websites that come up with general advice.
Great video, thanks George, from what i can tell these rules have been around for a while,but now they intend to enforce them more strongly
Most people seem to think this is a totally new tax. Which isn't the case at all. It's slightly concerning though just the amount of people who seemingly had no idea about the rules prior to all this coming out..
I am not really sure this is good news for you. I don’t sell anything on sites but have decided to stop spending on eBay like I would normally constantly, in case it’s something I might want to sell at a later date. I think you will see a massive drop in spending and everyone will stop using sites like eBay. Better for buyers because they will stop wasting money on crap!
I agree, it does put me off actually buying anything (such as books), if I now have problems selling them on. Perhaps I should just use the library more
So if i work full time does the tax threshold also include self employed earnings? Or are they separate
Hi George, my wife has been buying to sell on ebay, for the last 18months or so, she had an accident and has been unable to keep a PAYE job, so to top up our household income, by buying and selling, when you say, we should advise HMRC of our sales, we generally have a 2-3k 3month turnover, so I don't think we are over our 12.5k personal allowance. How far back should we advise them and how do I do this? Do we wait until April 24 with a tax return or just call them now? Any help will be appreciated, love your channel and have enjoyed my wife doing this, as it has helped her mental state, for her being able to help towards the bills. Thanks Mike
From what I gather, even if this is your main income, you would still have to declare anything above £1000 (that's turnover, even if it wasn't profitable), even if you believe it works out as lower than your non-taxable personal allowance. Always better to be safe than sorry as like is said in the video, ignorance is not an effective defence.
Also to add, you usually will have to have registered by October 2024 for any earnings between April 2023 and March 2024. That usually means you should have registered in October 2023 for earnings between April 2022 and March 2023.
I think if you have registered already, it rolls on year on year and I don't think you keep registering.
Ive been collecting gas mask for the few years and have a sizeable collection, which jm looking to down size so maybe selling off 30+ masks, some of which can quite easily fetch 150- 200 quid and even occasionally going up 500, would this apply to me?
Hey George, I wonder if you can help me because no one else seems to know. I am currently unemployed, so I'm on zero income, and I was considering selling on eBay. So does that mean I am allowed to earn £6000 before submitting a tax return, or do I have to submit a return even if I don't meet the NI threshold. I am confused about the £1000 side hustle tax because, as I'm unemployed, this wouldn't be a side hustle. It would be my only income and would presently fall below the £12570 or the £6000
If you purchased ten items at £50 from a car boot sale however only sell five in the 23/24 tax year and carry five forward. Would you put £50 as an expense or £25 on the return?
If you are cash basis, you would expense the full £50 in the tax year you purchased them.
I use basic cash accounting so the £50 would be an expense for that tax year
Very informative video, you've put it accross so clearly too! I definitely agree with it being a good idea. I'm the same, have been declaring my earnings since starting my business, fully insured too. But theres so many others out there that are cutting corners and able to price cheaper because they arent properly set up. Selling as a business or self employed should always be insured and declared to cover yourself too.
Vinted Pro for the win here too! I would be over the moon for it.
Glad it was helpful! :)
If you are not selling as a business or self employed though, you are just selling to get rid of your own used items around the house. Quite easy to hit £1000 turnover on that as well
I’m also no expert so correct me if I’m wrong but I reckon if you start afresh with a brand new limited company that company can then earn the £12k ish before paying tax? If it’s not left sat in the bank as profit and is reinvested back in to stock and no wage taken from it then there is no tax to pay?
as a limited company you don’t have personal allowance, you would pay corp tax on profits no matter how little you turn over etc of course if you don’t make a profit then no take is due etc but would still need to file
Being a Ltd company is different to self employed as the personal allowance is for a person not a company so wouldn't apply.
Check with a proper accountant
Does one still get the £12k allowance if you're full-time employed and register as a sole trader on the side? .. or has your full-time job used up that allowance regardless if you register as a sole trader? .. Would that mean any profit you make just gets added to your full-time income? .. Thanks@@RetroReselling
So what’s the period for earning a 1000£ April to April each year ? Also once you hit 1000 and declare it your not taxed until you exceed 12,500?
Trying to understand a bit more, you say just selling your own items, you wont be taxed, but you are not supposed to resell on Vinted, yet they have to report anyone selling over 30 items a year. So how does that work if its just you having a clear out?
Good question. Same as - how do they know if im selling cardigan from charity shop what I bought for making profit or just getting rid of mine and my families stuff?
@@dianavaitaite5629 they don't, thats why i thought i had read it was on ALL people selling even if you were selling your own personal stuff. I could be wrong but thats what i read. You would need to keep the receipt for that cardigan otherwise when you bought it in say New Look, just in case you decided to sell it 2 years later
Hey Dude, how do you keep all your incomings and outgoings recorded to help with tax assessment
QuickBooks self employed app 👍🏻
Im going to start photocopying every receipt and send them all to the HMRC. They can go through each one. If everyone does this theyll soon give up
In the vast majority of cases we are talking about a 20% tax on PROFITS, for example £2000 sales on eBay, less any expenses ie cost of items any fees, postage, packing materials etc let's say £500 total expenses would leave a gross profit of £1500 minus tax @ 20% =£1200 net profit put more simply 20p tax on every £1 of net profit
I'm on Etsy. Can I offset the processing and transaction fees I pay on my sales?
What you sell on Etsy is your Gross income. Your Net income is what you are left with after any expenditure, ie postage costs, packaging for items, Etsy fees, petrol cost to take the packages to the post office, etc. HMRC are giving themselves one big headache.
IMPORTANT Hi I have a really important question if anyone can answer do they include last years profits to contribute to this £1000 or is it anything after January 1st
At any point if you bought items to sell for a profit and it exceeds £1000 within a financial year then you should be declaring it
The tax year is April 6th through to April 5 the following year
Re sellers are recycling lots items , land fill is going to increase with perfectly good useable items , thats not very green and good for the environment as people will think what the point , let's just bin it instead .
What app do you use to edit videos?
It has always made me laugh when resellers post videos with... 'I bought this for £10, sold it for £45, so after eBay fees I make XYZ...' what about taxes? packaging? running costs etc? Why should a physical brick and mortar shop that buys to resell pay taxes but an online business doing the same not? Revise your business, what you sell and everything should be okay.
It's always makes me laugh when people comment things sort of thing because it should be common knowledge there's things like fees, postage etc to take away.
It would be a long boring video to break down every single sale every single time 🥱
What are the rules for collectors? I buy/sell/swap trading cards for personal use/collection but I'm worried because theres a fair bit of money coming and going, but I'm just using the cash as a middle-man of sorts without much gain or loss.
I’m a private seller and I occasionally sell, I have a large collection of Video Games & Consoles, if I ever wanted to have a clear out at some point does that mean I’d have to sell £1000 per year or can I go over that limit because I am not trading?. If so what is the limit for a private seller who has a large collection?.
So once you register as self employed do they then contact you with what you owe etc?
no you'd need to submit a tax return first
ive been doing selling on ebay for a number of years, but i havent been deliberately tax dodging at all its my only income too but this tax is concerning me, not that i mind paying tax but because ive just. been selling a few years full time and havent reported because i didnt think i needed to. because of this i have closed down 2 ebay pages in process so i can condense into the one which ive made a business account and shop so i can be organised for tax, any advice?
Are you buying items with the intention of selling for a profit? If so then yes you'll need to apply for self employment through the HMRC website. You don't pay any tax until you've hit £12,570 in profit.
If it's just your personal stuff you're selling then you don't need to do anything 👍🏻
Are you buying items with the intention of selling for a profit? If so then yes you'll need to apply for self employment through the HMRC website. You don't pay any tax until you've hit £12,570 in profit.
If it's just your personal stuff you're selling then you don't need to do anything 👍🏻
Well, the amount of confusion caused by most people talking rubbish about the HMRC situation has been ridiculous, but it is really good that you have been talking sense well done. ❤❤❤
A local Royal mail Post office person told me this week that they are waiting to see a big drop in items being posted .
This may have been covered but can’t hurt to ask again… so what about high value belongings of the same thing like collections or large collections of 1 type of thing; like cards, statues, figures, games, sealed items etc …
These items can Increase 10 fold from initial purchase to u selling …
I wouldn't sell them, well not online from now on unless you know of a private collector who will pay a reasonable price in cash.(Important in cash, not a bank transfer) Of course if you don't mind getting shafted by the taxman it's best to just keep them.
Another thought comes to mind is anything worth buying on ebay anymore ? Everyday items for use yes but not collectables. The problem is how can you sell the things you bought some time ago for their true price today, on ebay you can but after tax. Or to an interested collector who is genuinely interested in your item ? I go for the latter 100%
I think in your case you would be liable for Capital Gains Tax.
Your accountant is wrong the IR can go back 5 years that’s why you should keep your records for that length of time,it use to be 3.
I know 3 resellers who got letters last summer, one decided to bin letters 1,2and 3 and never heard from them again the other two got bills because they interacted with the IR.
Not my accountant but I meant they're going to be looking back at the previous 2 years of online sales
Hi, have been debating reselling but how do you prove as a reseller you paid x amount at a carboot sale or on marketplace for an item?
Just have a record to prove to the HMRC that you are doing the best you possible can in an environment where a vender receipt is not available, for years I keep a purchase note book recording date and place of car boot sale, money taken/ returned with to show spending. Brief list recording items purchased. I take a photo of grouped items too, but that may be overkill on my part. It’s not perfect and exactly what they want, but if you speak to them they generally say it’s better than nothing.
@@VGM-UK I agree with your comments. It's all about showing HMRC that you have taken reasonable action to keep your financial records as accurately as possible. However, I think HMRC are banking on the vast majority being too lazy to keep records..............
I make a record on quikbooks of the amount I spent, day, location etc & take a picture of the haul
Great video thanks 🙏
Hi. If selling off my gaming and toy collection to help go towards a house deposit, should this be declared? I have about £5K in sales on eBay in 2023. I have no receipts of purchase for the majority of these items due to their age.
In their eyes: no receipts from purchase = not yours
If you take over £1000 a year you’ll have to pay tax …..
So yes. You need to register as a business to keep selling to avoid auditing
As an avid game / toy collector , I am sure you have plenty of pictures of your collection built over time. That should be plenty of proof to prove it is a personal collection and you are not a reseller.
@@larrymaster1946absolutely not to the HMRC.
They want receipts and proof of purchase.
I disagree in fact if you don’t have receipts this may prove even more that you are not a business as a business seller would generally keep their purchase receipts as a private buyer would not. I would wait to see if HMRC contact you and if they do just explain the situation. I think HMRC are going to get into a lot of problems accusing people of selling as a business when they are actually selling theirs and theirs family’s old items. I think they will only be able to prove business sellers if there are selling an extremely high yearly amount 20k +, or they are selling multiples of the same new items. HMRC are going to have issues with this they may try to bully people but if you stand your ground there is not much they can do and it will not be worth them proceeding.
Yes you're absolutely fine as it's your collection that you didn't have intention of making profit on.
I believe there is a number of £6k a year on certain things like this before capital gains tax might apply but talk to a qualified accountant if unsure
The question I want to ask as a reseller, if we buy something to make a profit say from a car boot or Facebook marketplace… there are no receipts for these purchases so when you sell on eBay or Vinted, you will get hit for tax on the revenue but won’t be able to put in your expense. What is our way around this?
Sorry if this is a stupid question but just one that’s been on my mind. I know we could write down costs etc, or keep note on apps n stuff but there is no real proof of purchase.
ThTs all you can do, have a Cash book & write down purchases, Hmrc aren’t going to scrutinise you if you are declaring, it’s the ones not declaring they’re gunning for
Just keep contemporaneous records of expenditure. HMRC don't need receipts for everything just reliable records. If you are doing your best with your returns, HMRC are very unlikely to enquire into your affairs.
Thanks guys, just been the question on my mind. I have been self employed for a few years now. Previously working in construction so I know how to fill in tax assessments etc, but just with the new venture in reselling I wanted to be clear with some things. Appreciate the replies 🙌🏻
I use Quikbooks Self Employed and when I go to a boot sale I just make a note on the app the complete amount spent, where & when with a picture of the haul all together instead of item by item :)
Recently started using QuickBooks myself, still getting used to that too. Because when adding my bank it obviously looked back on about 600 transactions so I’m currently having to sort out what’s expenses and sales etc.. but it’s going good 👍🏻
So if I sell my second hand car (or anything) at a loss, can I claim the loss against my income?
sure..course you can.,
If you sold something you bought with then intention of making a profit on for a loss then yes it goes as a loss on your self employed income NOT employed earnings
@@RetroReselling hm, all of a sudden I'm thinking I'm gonna make a profit on everything I buy! Bit of a bummer if I make a loss.
What's not clear is if they're starting on Jan 1st collecting data going forward, or looking historically also up until the current date
from 1st Jan the platforms are required to share data that can go back up to 2 years
Martin Lewis website says - "From the first of January, they started collecting data and they will have to share that by January next year which means they are SHARING DATA FOR THE CALANDER YEAR 2024"@@RetroReselling
Also "Digital platforms “will be reporting annually for calendar years [rather than tax years], so the first period of reporting will be the year ended 31 December 2024, which they need to report by 31 January 2025
I would advise anyone whos not sure to call HMRC, if not sure, its not the end of the world, just get Tax registered ASAP. Just make contact before they contact you.
HRMC are there to help also, don't stress.
Hello George been watching a while great videos just wondering what about tax on UA-cam earnings that would be a great video to do if you could
What about facebook market place is that on the hitlist?
I know about declaring your business if you earn more than £1000 in 12 months but I heard from 2024 if you sell more than 30 items you have to declare which is correct. If it’s 30 items is it per sale or per items sold?
Another awesome video, very helpful. Anyone know if we should be keeping receipts from charity shops and fuel, wondering if they might be deductible?!
Also if I'm over the threshold and I buy somthing for £5 and sell it for £10 do i pay tax on the £5 profit or tax on the £10 sale 🤔
In you’re example you would record the £10 sale in you’re turnover(earnings) and pay tax on the £5 profit
There are 2 ways to do your car costs. I keep a record of each journey that I do for business, such as trips to the car boot, the post office, the charity shop etc and claim 45p per mile. For example, the nearest big car boot to me is 19 miles away. A round trip is 38 miles@ 0.45p per mile = £17.10 mileage cost. If you do it this way you can't claim for petrol, tax, insurance, MOT etc. The other way is to keep your receipts for your petrol, tax, MOT, repairs and insurance, but you can only claim the percentage that you actually use for business which is way too complicated for me so I just claim the mileage. Plus, if you go to a car boot and not find anything worth buying you can still claim for the miles you drove there and back.
Yes keep all receipts! I do basic cash accounting so just add up all incomings vs outgoings and miles are calculated at 45p per mile
@RetroReselling l know you use Quickbooks but do you record it on a spreadsheet too?
Or in my case, buy a book for £10 and then sell for it £5 and postage of £2.70 and ... probably be easier for me to just dump the books along the charity shop.
I'm young guy learninh how to resell and sell. So ur telling me that u get vat 20% then pay eBay 14% and then tax depending on the tax bracket ur in?
Say if I make £1500 a month and all that gets spent on bills etc and I spend some on stock to make money to buy more and then the money is gone again, how can they get money off you
You have to put money aside for tax or risk a fine plus interest on top.
I will now move to Marketplace and Gumtree as I pay my tax on my main income
WHEN CBDC come s in in a couple of moths you wont have cash to worry about spending at boot sale so job done
yes central bank digital currency like charie said you will own nothing and this is another way of you stopping earning a couple of quid people on ebay are now on thin ground
Hello and good afternoon thank you for the video and i hope that you are well. Does this really work ? I am really struggling with living costs and would be super grateful for a way to make a bit of money. I have a laptop. thanks George
When i was reading about it the othwr day it said 7500 for Air b&b yet £1000 selling my kids old clothes that i just use the money to buy them new! 😢
Not sure about the airbnb figure but you can sell your kids old clothes without worrying at all about the £1000 figure as you didnt buy them to sell for a profit :)
I don't get it, so I make a side hustle because cost of living, after ebay fees and tax etc i'm making no profit. So i guess the next thing to do is to do illegal stuff????? They are making the world a worse place.
You can still do reselling as a side hustle, just after £1000 turnover you have to declare yourself as self employed and fill out a tax return every year.
You only pay tax on PROFIT not turnover and even then you have other expenses you can take away like fuel, fees, equipment, postage etc etc
And tax is only payable after earning £12,570 profit in a financial year (April to April)
I will say that all the people who are kinda moaning in the comments about a host of different reasons towards the Gov/Taxman etc...just be grateful you live in this country and not one like America where everything you earn/win/get given has to be declared and taxed!
This is probably more aimed at the people who run a reselling business and do not declare it whatsoever...there are plenty out there who don't declare what they earn and try to get away with it. A couple of big sellers I know of have done this....kinda makes a mockery of the legit sellers who go Self-Employed and declare it like myself and Retro. What goes around comes round!
Is this for business sellers only?
For anyone selling with the intention of making a profit, it doesn't matter if you're signed up to eBay as a business seller or not, if you're selling to make a profit you're acting as a business
This country system really is a shit hole
they are not stopping me there is always a way round things
super high inflation! cost of living crisis tghis side hustle tax is going to cause a greater depression people side hustle to make ends meet
I already pay tax from my full time job so because they already see me pay tax etc will they leave me alone ?
Absolutely not, if anything you should be more careful as you already are in a tax bracket
I think the potential worry in the long run is it could potentially be made law to have to govern any trading even on private property. This would surely ruin the reselling game if Bootsales/ markets all over the country ware to be governed… clearly this sort of decision is within their remit to legislate. I agree with you that the business/ private sellers who make the higher proportion of profit should be where the hmrc start, not the single mum making a a bit of cash back on the kids clothes… On the flip side of things this will in theory mean more people can obtain a house due to being to demonstrate higher earnings legitimately, in turn making the cost of living fall due to the need to be competitive…. Interesting video m8….
I hope it doesn't go to that level!
Facebook may become busier as a result of the yearly reports of every seller although if doing it as a business and doing your accounts it doesn’t really change what’s already been in place for years… Facebook marketplace & alike could become a chargeable service due to increased demand. I hope it doesn’t go down that route but in the short term I agree it should make markets busier.. can’t wait to get stuck into this season & hope things move the right way for this year …. Happy new year appreciation for the channel !
@laurenceknight3293 if that's the case we have jumble trails. No need for Facebook market place it's full of time wasters.
are they going after hardcore sellers i sold a few items in 2006 video games and cloths but they was all second hand. i bought them new but i had a massive clean out.
This is gutting to me. I am in limbo. I do buy to sell but on a small scale and it has really helped my family get by in tough times but I don’t earn enough or have the money to invest in making it a self employed business. I have had to end my listings and just hope they don’t come after me for past sales. Not sure how (or if) I proceed. Appreciate your info in the video but the smirking whilst saying how its good news for you as less competition and more boot sale sellers for you to pick from was a bit of a low dig. I wonder how much you sold and made before you went self employed and payed taxes? As I said, I am in limbo as I don’t earn enough to be a business but losing enough to have a big effect on my family.
That smirk should tell you all you need to know about this bloke ...
He’s happy to buy cheap from people who aren’t paying taxes at car boots so he can sell for higher. but then goes on the moral high ground that he pays taxes on eBay, slightly hypocritical
I feel so sorry for you, this is going to crush many gig workers just to to survive the cost of living crisis
You have an account, your wife, kids, family members?
Do what you have to do to provide for you and your family. Don't be scared off by these scare tactic headlines.
Don't blame me for this, I'm just clearing up confusion going around. Why would you stop making extra money for your family? You only pay tax on your profits over the £12k figure so not being able to afford it doesn't make sense.
Yes I said on a selfish level it's good for me as it'll remove a lot of non reporting competition?
It doesn't even make sense, so if you want to sell your personal belongings you get taxed AGAIN. Thats rough
on your profits, you probably wont make a profit on your old stuff
true but i dont get how they would determine it yknow @@theboytheycallkenny
You don't ...
If it is your personal belongings there is no tax to pay unless it is a high value item over £6000
@samanthacady4171 that's for capital gains tax so not really related.
So ebay tax us on sales and take a fee but now the government want in? Is that basically it?
eBay have VAT added to their fees which is normal and you have to pay tax over the personal allowance which is also normal. It's just that the online companies now HAVE to share details with hmrc
I thought eBay already shared this data? What's changed?
Possibly but all the platforms now HAVE to do it instead of voluntary Im guessing
What if you are just selling your own stuff and stuff family members give you.
Your own stuff is fine but unsure if you're gifted things to sell
STOP USING EBAY AND VINTED SIMPLES ! SMFH
Why stop?
What do people do who have a cabinet in an antiques centre?
Hopefully log their incomings and outgoings
It still won't address the huge problem of business sellers who do pay tax but sell on eBay under private accounts which eBay seems to encourage with neverending free listings and reduced fees every two weeks. These people are our main competitors who have a massive advantage over us. There is one prolific you tuber who puts out daily videos bragging how much money he makes on eBay who has at least 3 private accounts that I know of
I believe this does apply to private and business sellers 🤷♂️
@@laurenceknight3293 I was replying to George's comment about competition from other resellers who don't pay tax leaving eBay which would be good news for us legitimate businesses. But the huge issue we have is businesses who DO pay tax selling vast amounts of products on multiple private accounts therefore avoiding distance selling laws and gaining all the benefits which a private seller gets from eBay as opposed to having a business account.
ebay report earnings to HMRC who will then chase it up with you.
No need for a business account now if they're doing this, private account is the smart way, as long as your paying tax who cares
Anybody earning over a 1000 a year is required to pay tax on it, it's always been that way but now the sellers who avoid it are going to get a big backdating tax bill
You have to declare it after £1000 with no tax to actually pay until after £12,570
There will be more sellers at the car boot for sure George, but they'll be wanting ebay prices lol
Most probably 🤣
Papers like the loot will have to be launched again,, hmrc are crushing all enterprise that cant stump up for a lawyer ,,, i am already repulsed by the fees ebay charge as they are the Monopoly
So if I make £1500 a month on eBay how much would they take, like £100, coz I work I get £800-1000 a month and get taxed like £100 so it’s probably same amount they take!!
Ive been selling of some of my old toys as well as hot toys figures but not at a profit, but over the year ive made 1700 and had about 20 to 23 sales on Ebay so im very unsure on what to do in this situation
You will be fine then, its only if you buy items with the intention to sell them at a profit. you can buy an item use it for a while and then sell it, its for people who are buying to sell for a profit and that is not what you are saying. if you have 4k of toys you have had over the years and are after clearing them out then this does not apply to you.
They're your personal collection that wasn't bought for the intention of making a profit so you're all good 😊
@@RetroReselling thank for clearing all this up once i saw the new about this it has put me in a panic mode over the last couple of days haha
Do you have receipts for all the original purchases? This is where a problem may arise. I could say exactly the same that I was selling my own collection when in fact I was sniping items from Facebook marketplace and selling them on eBay but I told everybody it was from my personal collection. If they come after people, original receipts are probably going to be key.
@@RetroReselling but then everyone could say that with second hand items.
Love this more bargains for me carboot should be quiet this Sunday let me make more money
Yes Im hoping for more sellers looking for cash at boot sales & less competition online
i do this part time selling i aso work and pay taxes on that and council tax i dont get many sales eneyways i dont premote to exspensive and not worth my time
No problem declaring the turnover of a £1000+, however, not sure why I should pay any tax based on that as in 99% of the cases, every book or DVD sold is for a price lot lower than the original especially when you add in the ebay / post / packaging / time and effort. No business would survive on the approach I apply. If they want that info, you should be able to put down the all the expenses for the P&P as well as the cost of buying the book / dvd etc.
You can? Postage and packaging is a legitimate business and expense!
If they're your personal books, DVDs etc then you don't have to declare.
If you're buying and selling them to make a profit then yes you do have to declare the income and fill out a tax return which will include your deductions such as postage, cost of goods etc
The declaring of money made over £1k has been a thing for years they are just making a bigger thing out of it.