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Ebay and tax

I’ve sold stuff on ebay. Do I have to pay tax?

If you’re doing a clearout of clutter at home, no. Even if your clutter sells for quite a lot - as far as HMRC is concerned, you only have to pay tax on what you buy to sell on for a profit, make to sell, or sell for other people.

Anything you sell that is yours - for instance, you have already used it or bought it by accident - is not taxable. Neither do you need to set up as a business.

But the moment you buy, make or take anything with the intention of selling it on you are a business and must register with HMRC as a business, whether you choose to be self-employed or even a limited company. You can of course be both a private and business seller, in which case you should use different ebay and bank accounts to keep them separate.

You need to think about VAT registration if your turnover, including postage costs to customers, looks as if it might exceed £73,000 over the year.

Read official advice on ebay trading on the HMRC website.


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