Tax on £1000 side hustle
- Thread starter sukhbir
- Start date
Phils Arcade
Senior Member
It can be worse. If HMRC see this as an extra income and class it as a second job that pushes your income above the lower tax bracket, you're taxed at the higher rate. This was one of the reasons I created a company and all my hobby equipment, materials, machines, computers, etc... are all paid out through that so the company pays the tax and not me personally. Also you can write off the machines and equipment over a set number of years.
I think the £1000 it total profit , I am unsure how they are going to govern things when people are genuinely selling there own rubbish. I have like £1000's of pounds of new computer stuff I need to shift , I guess they will be targeting people with new stuff to sell. But most people sell things at a loss. I sort of understand Business sellers to be fair.
The way I see it is if you purchased a Hoover for £200 and then sold it 2 years later working for £100 - You have lost £100 not made any money - I wonder if you can put that down as a loss ! lol. You get what I mean though.
The winners will be Government , Like the Mare of the town where I work who gets driven around in a Long wheel based 3.0 Jaguar XJ. And the other A Holes who get 10's of thousands of pounds a year to run a council that just fails to deliver.
Anyway I could go on all day about these idiots !
Dave.
The way I see it is if you purchased a Hoover for £200 and then sold it 2 years later working for £100 - You have lost £100 not made any money - I wonder if you can put that down as a loss ! lol. You get what I mean though.
The winners will be Government , Like the Mare of the town where I work who gets driven around in a Long wheel based 3.0 Jaguar XJ. And the other A Holes who get 10's of thousands of pounds a year to run a council that just fails to deliver.
Anyway I could go on all day about these idiots !
Dave.
kingtreelo
Active member
is this for everyone or just people with ebay stores?
i dont think i sell more than 1k worth of stuff but i wont be using it to sell anymore, how do they link my account to me as a person, they dont know my NINO or anything like that
i dont think i sell more than 1k worth of stuff but i wont be using it to sell anymore, how do they link my account to me as a person, they dont know my NINO or anything like that
I think its going to cover all forms of income, i.e. rent a house or room out on AirBnB and not declaring the income they will now get you for it.
Its not new rules to make you pay taxes on sales, it new rules for make sure you are declairing the income and paying the taxes you should be paying for years.
Hopefully it wont effect privately selling a few items and more targeted at people selling in bulk on eBay/Etsy/etc or renting loads of rooms out.
Pretty sure paypal have reported peoples account activity for years to HMRC, but under the guise of Money Laundering, I guess it depends how much you are receiving into your account.
Its not new rules to make you pay taxes on sales, it new rules for make sure you are declairing the income and paying the taxes you should be paying for years.
Hopefully it wont effect privately selling a few items and more targeted at people selling in bulk on eBay/Etsy/etc or renting loads of rooms out.
Pretty sure paypal have reported peoples account activity for years to HMRC, but under the guise of Money Laundering, I guess it depends how much you are receiving into your account.
L_____E_____T
Active member
Does anyone know if it covers PayPal as well? There goes my plan to sell on eBay - I'll be listing stuff here instead.
kingtreelo
Active member
ive not heard that, but it wont be too far behind i shouldnt imagine, not a problem if you are selling under F&F though
John Bennett
Senior Member
Yeah, the £1000 thingy has been around for years, it's just going to be easier for them to work out who's coining it in now.
It did seem kinda obvious that if you were making many thousands in income from arcade stuff, you probably should've had a word with a tax advisor.
I would expect what tax you pay will depend on how you break it down on the self-assessment tax return into profit vs allowable expenses etc.
www.thetimes.co.uk
How you determine what's 'allowable', I guess it needs someone who's done it before, or a tax advisor to suggest - not something you want to screw up.
It did seem kinda obvious that if you were making many thousands in income from arcade stuff, you probably should've had a word with a tax advisor.
I would expect what tax you pay will depend on how you break it down on the self-assessment tax return into profit vs allowable expenses etc.
'How much can I earn on my side hustle before paying tax?'
We explain how side hustles and tax work in the UK including when you need to let HMRC know about your extra earnings and the £10,000 rule
www.thetimes.co.uk
How you determine what's 'allowable', I guess it needs someone who's done it before, or a tax advisor to suggest - not something you want to screw up.
John Bennett
Senior Member
To quote the above:
"Since September 2016, HMRC has had access to sites such as PayPal and can request extensive information from them. This came as 870,000 people in the UK, including online sellers, failed to do a self-assessment return in 2016 – so the taxman is keeping an eye on this market."
I don't know what would prompt HMRC to look at the PayPal of a random person - is there a red flag when you put through loads of similar transactions on friends and family that get into the £1000's?
L_____E_____T
Active member
Read the BBC article but it's very topline - it's certainly got me thinking.
HMRC are really on everyone's case this year - doesn't matter if you follow all rules, they're desperately trying to plug a massive, massive hole that is in the billions.
I don't understand why we pay tax on everything multiple times over. I agree with bigger tax like they do in the Nordic countries, but it seems 'one rule for thee, no rule for me' policy lately. Paying big tax for big public services I'm fine with. Paying big tax for Michelle Mone I am not.
Not veering off topic but I'm considering moving abroad and going non-dom at this rate. Hence selling some heavy hitter items for sure.
But it doesn't take much to push you over a grand of sales in this hobby does it - that's a handful of Super Famicom games these days
HMRC are really on everyone's case this year - doesn't matter if you follow all rules, they're desperately trying to plug a massive, massive hole that is in the billions.
I don't understand why we pay tax on everything multiple times over. I agree with bigger tax like they do in the Nordic countries, but it seems 'one rule for thee, no rule for me' policy lately. Paying big tax for big public services I'm fine with. Paying big tax for Michelle Mone I am not.
Not veering off topic but I'm considering moving abroad and going non-dom at this rate. Hence selling some heavy hitter items for sure.
But it doesn't take much to push you over a grand of sales in this hobby does it - that's a handful of Super Famicom games these days
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John Bennett
Senior Member
Yes, you can be many times over a grand selling a single arcade machine these days. But I don't know what tax you actually would pay on such things - there must be a taxable profit difference between selling something you've owned for 25 years, vs. importing a container's worth of machines to upsell Or so you'd hope - I hope it doesn't involve needing receipts from 1998 . Worth finding out from a reliable source.
I've got to admit, while the threshold is lower than I'd like, it's not fair if there's actually folk making tens of thousands flipping stuff from side-hussles without paying tax. Not that today's news changes that - it's been dodgy for years, it's just easier for them to work it out now.
. Worth finding out from a reliable source.I've got to admit, while the threshold is lower than I'd like, it's not fair if there's actually folk making tens of thousands flipping stuff from side-hussles without paying tax. Not that today's news changes that - it's been dodgy for years, it's just easier for them to work it out now.
kingtreelo
Active member
meanwhile the prime minister is avoiding paying tax, yet kingtreelo who wants to sell some of his Famicom games is going to get stung big time if he wants to try and claw back some cash from his overseas purchases, i really need to start reading up on what i can claim back and what i cant, seems completely lobsided this thing unless you are a Tory benefactor
Cash is and always will be king, Bitcoin isn't far behind now.
I like convenience as much as the next man, but anyone who takes the time to look at where things are heading should realise there's usually a gotcha when 'convenience' is listed as a selling point. Micromanagement using AI is one thing that springs to mind.
There's many legal ways of avoiding tax, and the people who use those methods don't want people like us to know. So anyone who has a generic side hustle gets a pass from me, as long as it's not criminal in the sense of people being hurt emotionally or physically.
I've said it before and I'll say it again, they can stick their digital ID's and their state backed digital wallets where the sun don't shine. If people don't call it out, just how long will it be that you won't be able to buy or sell on eBay without a digital ID or wallet?
I like convenience as much as the next man, but anyone who takes the time to look at where things are heading should realise there's usually a gotcha when 'convenience' is listed as a selling point. Micromanagement using AI is one thing that springs to mind.
There's many legal ways of avoiding tax, and the people who use those methods don't want people like us to know. So anyone who has a generic side hustle gets a pass from me, as long as it's not criminal in the sense of people being hurt emotionally or physically.
I've said it before and I'll say it again, they can stick their digital ID's and their state backed digital wallets where the sun don't shine. If people don't call it out, just how long will it be that you won't be able to buy or sell on eBay without a digital ID or wallet?
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kingtreelo
Active member
ive actually started taking a decent amount of cash out of my bank each payday now and stashing it under my bed, ive not even told my wife about it, if i ever croak it and they start to go through my things, they may now be stung with a stupid tax bill for all my stuff they can sell, but they will have nice little amount of cash there they knew nothing about
In other VAT news, 20% VAT abolished on new goods!
https://www.bbc.co.uk/news/business-67855869
I have a small emergency cash stash too.
https://www.bbc.co.uk/news/business-67855869
I have a small emergency cash stash too.