Selling items Re: Trader classification - Non Trade
HMRC are going further into people who trade or have a side hustle income
However, there has been some confusion in regards to this especially when there has been a mention of Ebay/Amazon/Gumtree and other platforms have been discussed
It is right over time that HMRC will start to have access to more people’s online accounts and monitor individuals actions to assess whether that as their main source of income or additional income should have been declared for taxes but it has not been
Please note if an individual is selling old items/unwanted items/second hand items as no longer need then it is not clearly trade regardless of whether online promotion is being carried out as these items usually sold a) Less than the cost purchased for most likely no profit gain
b) Sale probably in total less than £1,000 in a year which can be offset against £1,000 trading allowance
c) Not main trade or regular action or say as example not bought huge number of stock as a batch to then sell individually to make huge profit
It is always advisable even if non trade to keep history of transactions should HMRC enquire just randomly
If you would like further advice on this matter please feel free to reach out for a free initial consultation and we can assess your position
Tel: 01212852534
Web: www.secureaccountsltd.co.uk
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