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Posted Mon, 23 Sep 2024 13:14:39 GMT by everythingharmony
I'm employed full-time and have been earning a bit of extra money on the side selling online services. My earning from this have been about £940, so I'm just below the £1,000 trading allowance. I've also sold some items online (not really for profit, and only about 10-15 items) that would push me over £1,000 if they counted - but I'm not sure if they do? Is it best to declare what I've earned now, or do I not need to if I think I'm under the allowance? Is there a way to work out what my penalty would be if I was over?
Posted Wed, 02 Oct 2024 07:07:22 GMT by HMRC Admin 19 Response
Hi,
Are these items your own personal property or are they acquired for the purpose of disposing for profit? If they are your personal possessions, then there is the potential for Capital Gains Tax. You can see guidance here:
Capital Gains Tax on personal possessions 
If they are acquired as part of your trade to dispose for profit, then they should be included in your gross turnover from self employment. If you exceed £1000 trading allowance, then you will need to register for Self Assessment as self employed and complete Self Assessment tax return.
Check how to register for Self Assessment
Thank you.
Posted Wed, 02 Oct 2024 21:35:30 GMT by everythingharmony
Hi, They are digital goods so I'm not sure what they are classified as. I'm also not self employed - I am employed full time. I haven't exceeded £1000 from the sale of digital goods but if I include selling items on Vinted, Ebay etc (not for profit though) then I'd be over £1,000. Just not sure how it works and if HMRC would see the combined transactions and assume I've gone over
Posted Wed, 09 Oct 2024 22:55:34 GMT by HMRC Admin 18 Response
Hi,

To advise you correctly, we may need to confirm what you've been selling. To allow us to do this, contact us by webchat or phone via:

Self Assessment: general enquiries

Thank you.

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