CAR BOOT SELLERS and eBay users could be liable to pay tax on their sales, ICAEW has warned.
The majority of sellers online and at car boot sales sell unwanted goods and are unlikely to interest the taxman, the institute said. However, HM Revenue & Customs could target people who trade online. This would include people who sell goods they have bought for resale, sell items they have made themselves, sell or buy items for others on commission or provide a service and receive payment.
Anita Monteith, technical manager of ICAEW’s tax faculty, said: “If you are only selling your unwanted possessions you will probably escape being taxed. If you are trading or making a capital gain, however, you might have to pay some tax on your income.”
People who sell unwanted personal items online or at a car boot will still have to take capital gains tax, Monteith added.
“You should also remember that even though you may not be classed as a trader and so not liable for income tax on your profits, you may still be liable for capital gains tax. If you are in any doubt you should speak to an accountant or contact HMRC.”