Do I need to pay tax when I sell PCs on eBay and Facebook market?

[landonnate]

I'm 16 and I sell PCs as a hobby, I make around £2k of revenue a year doing this but I've never paid tax on this and just realized maybe I should ? I don't make a lot of profit per pc maybe like £100-50. Do I need to pay taxes on this? (I'm in england )

 

[ashnicole]

@landonnate You need to report your income to HMRC. This doesn't mean you will need to pay tax

 

[landonnate]

@ashnicole If i do get taxed how much will i have to pay

 

[hoahtx]

@landonnate Depends do you have any other income?

 

[landonnate]

@hoahtx Nope

 

[hoahtx]

@landonnate OK profit under £12,570 will be untaxed £12,570-£50,270 will be at 29%

 

[landonnate]

@hoahtx No chance im making 12k lol. Do i still need to report?

 

[ashnicole]

@landonnate yes, all income above 1k needs to be reported. What you don't want is a fine for not submitting a self assessment, even if you wouldn't need to pay any tax.

Its what feels like an unnecessary move, but it'll be a small task that could avoid a big issue in the future

 

[landonnate]

@ashnicole So I 100% won't be paying tax?

 

[ashnicole]

@landonnate I’m not your accountant, but you should have a tax free allowance of 12.5k a year

 

[theropod]

@landonnate Not if your income remains below your personal allowance, which is around £12k.

Still need to do self assessment if your turnover is above £1k though. Even though there’ll be nothing to pay

 

[bfall]

@landonnate No. There is an Exemption from notifying liability where you are not liable to tax on your income.

Do not get involved in Self Assessment unless you really have to.

 

[resjudicata]

@bfall This

 

[tendercarelawnservice]

@bfall Going forward all revenue over 1k generated on eBay will be reported by eBay to HMRC.

If you don't declare, you run the risk of HMRC complaining. If this is your only source of income that may be high risk. If you're turning over more than 1k on eBay going forward, you may save yourself a lot of grief by simply completing a self assesment.

 

[bfall]

@tendercarelawnservice If you had read the new rules you will have known that they don't apply to 'Auction sites'. They have been reporting transaction data to HMRC for a decade. HMRC match that data to their data. If you are not taxable they won't contact you.

 

[tendercarelawnservice]

@bfall The new rules?

As in eBay literally saying eBay will be reporting all data to HMRC?

https://www.moneysavingexpert.com/news/2024/01/online-platforms-etsy-vinted-airbnb-report-hmrc/

If you don't know what you're talking about, why are you even typing it?

"If the total amount you earn via a platform in a tax year is £1,000 or ABOVE, you LIKELY need to tell HMRC and MAY have to pay tax on this"

Stop giving bad advice.

 

[spreadinglove]

@landonnate Yes.

 

[connieandcharlesw]

@landonnate Yes. Also consider if you had a part time job. Earnings from that job PLUS profit made from selling pcs could technically max out your yearly tax free earnings.

Even if it doesn't, you should declare your earnings on the off chance they look in to your account (let's say you sell a pc to a company. That company would need some sort of receipt. That receipt is passed on to their accountant, possibly to HMRC. At that point they could easily look at you, who you are etc. better to be fully registered and declared rather than pay a penalty.

 

[gracemercy2017]

@hoahtx You mean 20%

 

[christismyking]

@gracemercy2017 20% income tax, 9% class 4 NI