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Posted Thu, 29 Feb 2024 14:47:02 GMT by Clare1234
Hello, I am really hoping you can help. I am confused and worried about where I stand. I viewed the thread 'Selling Online':  Admin 32 first says, ‘If you are selling your own assets, then we are looking at capital gains, where the annual exempt allowance is £6000 for the current tax year. If the gains from the assets that you dispose of are below this figure, then there is nothing to report to HMRC.’ However the advice then changes to, 'As over £1000 it could be seen as trading income and you could claim the trading allowance if you do not hold receipts in order to claim actual expenses.' How does HMRC decide if something 'is seen' as trading or capital gains? Advice given on this thread is confusing and contradictory at times. The advice given by Vinted is also worded differently. Can you confirm if this is correct? Can you confirm where I stand please?: I’ve currently sold 144 items on Vinted since April, totally £765.65. I have another 7 pending sales which comes to £67.25. This is a total of 151 sales at £771.90 Everything belongs to me or my toddler. Mainly toddler/baby clothes and items. I just want to sell what he no longer needs so I can put the money towards new clothes. Nothing is at a profit, everything is significantly below what I paid or what it is currently selling for. For example, used t-shirts and trousers sold for 50p-£1. A toy which is selling at £40 I sold for £18. A handful or less of the items were bought for my son but not used (IE, trainers I bought in advance but then didn't fit) so sold as new but below what I paid/price online. Does this count as capital gain? Or trading? If it is capital gain - what is the limit, £6000? If it is considered trading, do I only need to report income if it is over £1000? Feeling lost and confused as everything I seem to read says something different. I really don't want to get this wrong. Help and advice is appreciated, thank you

 (Post edited by HMRC Admin)
Posted Fri, 01 Mar 2024 14:24:44 GMT by HMRC Admin 25
Please refer to guidance at:
Selling online and paying taxes - information sheet
And in particular use the online tool to confirm.
Thank you. 

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