Selling conversion kit - tax question?

[Furuuaye]

Hi! I was given a conversion kit by a friend and it doesn't fit great on my bike & doesn't quite deliver the power I want so I'm looking to sell it and use that money for an upgrade. However I am concerned about tax - I make around the personal allowance amount (just under this year) however with selling the kit I will be put in the lower tax band according to this after tax calculator. I've heard eBay sellers being investigated for undeclared income and would rather not have to deal with that - so should I be worrying about this or not bother? Normally I wouldn't care as I have paid tax for buying the item anyway, but I didn't pay any VAT on this as I was given it.

Thanks in advance

 

[danielrlee]

Hi! I was given a conversion kit by a friend and it doesn't fit great on my bike & doesn't quite deliver the power I want so I'm looking to sell it and use that money for an upgrade. However I am concerned about tax - I make around the personal allowance amount (just under this year) however with selling the kit I will be put in the lower tax band according to this after tax calculator. I've heard eBay sellers being investigated for undeclared income and would rather not have to deal with that - so should I be worrying about this or not bother? Normally I wouldn't care as I have paid tax for buying the item anyway, but I didn't pay any VAT on this as I was given it.

Thanks in advance

You don't have to worry. Non-business sellers are not liable for any tax on the value of a sale. The only VAT you will be liable for is the VAT charged by ebay on the final value fees (20% on top of ebay's selling fee).

 

[tommie]

So a kit worth a few hundred pounds is going to attract the wrath of HMRC?!

Aren`t you being a tad paranoid?

Sell the thing on here for cash ........ what is it btw??

dear `o dear......

 

[Deleted member 4366]

Let's make it simple: There's no tax to pay when you sell your own used stuff on Ebay.

 

[danielrlee]

Let's make it simple: There's no tax to pay when you sell your own used stuff on Ebay.

Not true. Ebay UK charge VAT on their fees, but this is collected directly by ebay at the time of invoice payment.

 

[DynatechFan]

HMRC do take a very dim view of people pretending to be selling personal items (perfectly legitimate by the way ) when they are actually traders - you are safe on 2 levels; one its a single personal item, and two there are plenty of personal "traders" on ebay, gumtree and the rest who escape HMRC's gaze despite really obvious dealings - one person on gumtree near me has at least a dozen kids bikes permanently listed for "private" sale, they even have amazingly cheap adult bikes that appear late on Saturday night only to be sold by morning - but no one seems to are very much . . .