HMRC taking even more tax - UK (but maybe also a worldwide thing)

[seamus]

I have read this morning that HMRC are now legally allowed to get sellers details from many platforms such as eBay, Vinted & Air BnB and check how much people are selling in a 12 month period, if this is over £1000 then they will contact us and issue a demand for a further 20% tax.

So... let me get this right. I buy my son a £2000 mountain bike, drum kit, anything... for which we already pay tax/VAT on... 12 months later he doesn't use it anymore and so we sell it for £1500, losing £500 in the process. But if selling it on any of these platforms it means that I have to pay a further tax on the £1500... how in God's name is that even moderately fair.

I fully 100% agree with clamping down on those avoiding paying tax, those literally taking the p*$"ss, but this just smacks of hammering the little people because they can and it's far easier than chasing the proper tax avoiders/multi-nationals etc etc. I can see this having a devastating effect on eBay and it popularity.

Bearing in mind some of our model collections (mine in particular) that means that ebay and the like are firmly now off limits when (if) it comes to selling them in the future. All the more reason to build every one of them I guess.

[jaykay]

Since when have taxes been fair... in any country?

[stubeck]

We've had tax collection on ebay here in the US and other platforms for years. I know that it came as a surprise to many when Paypal started giving them tax forms at the end of the year, and Venmo has been doing it the last few years too. Its also similar to how taxes weren't collected on most online platforms until the mid 2010s.

The core issue is that the tax laws in most countries mean we've been inadvertently breaking the law for years on these platforms. It would be nice if some of these limits could be changed for a "fairer" use.

[seamus]

Since when have taxes been fair... in any country?

sad, but so true!

[tubegenius]

"Should 5 percent appear too small, be thankful I don't take it all" George Harrison.

[brabhamboy]

My understanding is that it won’t apply to selling personal possessions.
If I bought a model collection with the intent of purely selling on for a profit, then that is trading and tax would be due - if I wanted to sell my own collection over time, then it would not be due.
I might be wrong but I think they are targeting those sellers who are not registered as Business Sellers but are regulatly knocking out high-end fashion goods, trainers etc.

[seamus]

My understanding is that it won’t apply to selling personal possessions.
If I bought a model collection with the intent of purely selling on for a profit, then that is trading and tax would be due - if I wanted to sell my own collection over time, then it would not be due.
I might be wrong but I think they are targeting those sellers who are not registered as Business Sellers but are regulatly knocking out high-end fashion goods, trainers etc.

I think it's anyone selling over £1,000 worth of stuff in a 12 month period, that's what the BBC are reporting anyway, there's also a quote from the CEO of Vinted. It's irrelevant whether its personal possessions apparently... in short 30 transactions of over £1735 in total in a 12 month period and the tax man will come calling. There's an awful lot of anger on the ebay forums... seems many are looking to turn to Facebook marketplace and risk the countless amount of scammers,

https://www.bbc.co.uk/news/business-67855872

[sky1911]

The interesting part in the beeb story is that it's people making a profit. As per the definition of profit, buying something for 1000 and selling it for 750 would mean - to me anyway - making a loss of 250. But I assume HMRC does not care about that. I cannot ever sell my stuff, otherwise I'd be in that bracket in an instant. I think you may have to start your own multinational corporation so you can dodge taxes anywhere .

[stubeck]

I assume if you can show you're making a loss, you won't be taxed. So keep your receipts!