![]() What happens if I don’t declare my eBay earnings? Other things you can also consider expensing include PayPal fees, postage fees, courier costs, and packing supplies like parcel tape and boxes. For example, you can include your eBay selling fees as a business expense in your Self Assessment tax return. The Personal Allowance currently sits at £12,570 for the 2023/24 tax year.Īs an eBay seller, there are a few things you can expense as part of your business operations. The Trading Allowance enables you to earn self-employment profits tax-free, not to be confused with the Personal Allowance which is the tax-free portion of your full-time earnings. If you make up to £1,000 a year from your eBay sales – assuming that they don’t account for your full-time income – this is completely tax-free with the Trading Allowance. The tax that you owe on eBay profits depends on how much profit you make. The big question is, once declared, what tax do you owe on these profits? How much tax will I owe? Profits are more clear cut when you either make or buy goods specifically to sell on eBay, but you should be mindful of your liability even if you’re selling second-hand tat. And if profits are the goal, this needs to be declared. The more you sell, the more it will appear to HMRC that you are doing so to make a profit. That said, the tax implications of selling on eBay are very much real. Ok, eBay tax isn’t a thing in the eyes of HMRC. But, as with many other things in this life, your eBay profits are not always totally free. ![]() The idea of ‘eBay tax’ isn’t necessarily one of our considerations before we list our clothes, bric-a-brac, furniture, antiques or anything else that we might be selling. For others, it is your main source of income. For many of us, selling second-hand ‘treasures’ on eBay is a side gig to our full-time employment.
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