Tax on £1000 side hustle

[Bods]

Question

How long do you have to own something before it's not considering trading when you decide to sell it?

And even if you bought something a year ago and you sold it now at a profit, it should go up with the line of inflation like everything else has, ie Car Tax
everything your paying for costs more now so if it's gone up in value less than inflation it's worth no more than it was the year before

Rishi claiming he's brought inflation down while food prices still what 25% higher, so if you spent the money from something you bought 3 years ago and make 25% profit and spend it on food to feed your family now, you haven't made any money on it at all, or am I talking nonsense

 

[CMYKhazi-Dan]

started buying old Technical Lego sets like Car Chassis and space stuff, wish I hadn't bothered now as i haven't time for any of it

I sold my vintage Lego Chassis plus other Technic and Space stuff plus loads of other old shit a couple of years ago! No need for it, can't wait to get to a place where all I have is a few things I need, sell the house, buy some land somewhere remote and live in a converted storage container on it 😆

 

[bbz149]

O F@CK think I've gone over my 1K limit on my Wife's account!! LMFAO!! Most of that was my Son's Meta Quest 3 sales! Oh well, he can do the self assessment bollox as he's at college with no job!!

Date range: 01/12/23 00:00 - 31/12/23 23:59 GMT
Generated: 02 Jan 2024
Transactions summary
Opening funds (on 01 Dec) £99.03
Orders (Total minus fees) £6,121.71

 

[Flinnster]

Just bit

How long do you have to own something before it's not considering trading when you decide to sell it?

This is one I've also found no answer for. There's a bit of urban myth about it being trading within something like 12 months from purchase to sale but other places have stated 'there's no such thing as the 12 month rule' so genuinely who knows.

 

[TheDaddy]

Just read this from Sage - Seems to me that if its just crap you are selling and you are not buying and selling stuff you should be ok ?? Or am I reading it wrong ?


Dave.

 

[Bods]

Sounds like it, I could be selling loads of Blurays I bought and look like i'm trading but I bought job lots to get ones I had on DVD, selling what I didn't want to save me money buying individual, but selling at less than paid so nothing to pay tax wise but some one seeing you sell 700 of could think i'm trading

Like I said, think they just want to scare more people into owning up to crap I made a profit on this stuff better pay tax.

 

[pooman2084]

If you bought stuff recently then resold it, surely that IS trading, albeit for leisure purposes.

It looks like longer term tut from the loft or your old collections would be ok, but not job lot recent buys. Who knows until someone gets done I guess?

 

[Bods]

If you bought stuff recently then resold it, surely that IS trading, albeit for leisure purposes.

It looks like longer term tut from the loft or your old collections would be ok, but not job lot recent buys. Who knows until someone gets done I guess?

If your selling at a loss though and got some free or cheaper items there is no profit to pay tax on, just saying it could look like trading when reselling it

 

[Vorbis]

I'm presuming buyer regret isn't taxable.

Not arcade related but for example I bought a Navitimer at auction last year, then saw an older model I preferred so bought that as well. I'm guessing I won't be liable for tax when I come to resell the first one, coz if I am I'm going to be pissed 😄

 

[kingtreelo]

im about 28 items and about £700 for the last year, the wory is everything has been FDS Games, but the tax office can go fuck themselves as i pay more than my fair share

 

[Rog69]

I just filled in my first ever tax return, my side hustle went over the £1000 turnover limit but I spent more than I earned gearing up to make it a proper business and ended up registering a loss of over £1000. Even though that carries over to next years books I still have to stump up £850 payment on account for next year!

Sombody please tell me that this will be worth it in the end

 

[adammoogle]

I just filled in my first ever tax return, my side hustle went over the £1000 turnover limit but I spent more than I earned gearing up to make it a proper business and ended up registering a loss of over £1000. Even though that carries over to next years books I still have to stump up £850 payment on account for next year!

Sombody please tell me that this will be worth it in the end

Pre paying is a crime, you're guessing your earnings and anyone who run's a business knows how hard that can be.

 

[CMYKhazi-Dan]

I just filled in my first ever tax return, my side hustle went over the £1000 turnover limit but I spent more than I earned gearing up to make it a proper business and ended up registering a loss of over £1000. Even though that carries over to next years books I still have to stump up £850 payment on account for next year!

Sombody please tell me that this will be worth it in the end

You don't have to pay in advance if you think you won't make any profit next return. You can add that to the end of your self assessment. All good 👍

Isn't it also split into two payments.

They'll let you know if you need to pay. Doing the self assessment return is the main thing to get done 👍

 

[Vorbis]

I've had to do one for the last 20 years. Never pay anything in advance if you don't have to, getting money back is a pain in the arse. Also hate the threatening letters if you don't pay instantly. Given the amount of tax I pay them monthly I think they'd cut me some slack but no such luck

 

[CMYKhazi-Dan]

I paid £6K upfront when I went self employed in 2005. Pretty sure I never recovered 😆

So now I play video games and do art with a glass of wine if I can afford it 😍

 

[Rog69]

You don't have to pay in advance if you think you won't make any profit next return. You can add that to the end of your self assessment. All good 👍

Isn't it also split into two payments.

They'll let you know if you need to pay. Doing the self assessment return is the main thing to get done 👍

I will be recording a profit next year, just!

I thought it would be split into two payments too, but I am wondering if it is because it is a relatively small amount vs what many businesses pay there is a threshold amount before it gets divided into two?

It told me at the end of the assessment that I had to pay £850 but then when I click to make a payment there isn't anything to pay, it did say to wait 72 hours for it all to update though so I will revisit it in a couple of days,

I must admit that as a tech head with ADHD that just wants to make and sell cool stuff, the tax and admin side of things is a bloody nightmare! I am gradually getting my head around it all though thanks to some helpful Youtube videos.

 

[CMYKhazi-Dan]

I will be recording a profit next year, just!

I thought it would be split into two payments too, but I am wondering if it is because it is a relatively small amount vs what many businesses pay there is a threshold amount before it gets divided into two?

It told me at the end of the assessment that I had to pay £850 but then when I click to make a payment there isn't anything to pay, it did say to wait 72 hours for it all to update though so I will revisit it in a couple of days,

I must admit that as a tech head with ADHD that just wants to make and sell cool stuff, the tax and admin side of things is a bloody nightmare! I am gradually getting my head around it all though thanks to some helpful Youtube videos.

Don't pay until they ask. The return is more important. I'm not accountant th9

 

[big10p]

So, eBay have decided to tackle the issue by introducing a new, additional fee. 😆 I guess everyone got the email...

Learn about the new regulatory operating fee
Hi big10p,
At eBay, we value you as a seller and want to inform you about a change to our fees.
To address the rising costs associated with the increasing number and complexity of regulations impacting eBay’s marketplace - including consumer and environmental protection, as well as new taxation and customs measures - we're introducing a new regulatory operating fee.

What’s changing?
From 8 April 2024, this new regulatory operating fee will apply to all sales from listings on the following sites: UK, Austria, Belgium, France, Italy, Ireland, Netherlands, Poland, Spain, and Switzerland.

How the regulatory operating fee is calculated
This fee is calculated as a fixed percentage rate (0.35%) of the total amount of the sale (which includes the item price, postage, taxes and any other applicable fees), and is subject to Value Added Tax (VAT), where applicable. This fee is in addition to any final value fees and selling-related fees you currently incur.
For more information on the regulatory operating fee and to see how the fee will be calculated, please visit our Seller Centre page.

Thanks for being part of the eBay community.

 

[stevebm1]

I wonder how many sellers won't even realise this,and get stung once something sells,I know someone who sells stuff on ebay,and only makes 10p profit on each item,but she does sell 1000's each month,so it soon mounts up for her

 

[big10p]

I wonder how many sellers won't even realise this,and get stung once something sells,I know someone who sells stuff on ebay,and only makes 10p profit on each item,but she does sell 1000's each month,so it soon mounts up for her

Probably end up making a loss and having to pay eBay just for the privilege of using them, which seems to be the goal they're working towards. 😆