ASK AMS: Can we be taxed on car boot or eBay income?

PETER Bromiley of AMS Accountancy in Swindon answers your latest financial queries...

Q: I sell stuff at car boot sales and on eBay. This isn’t taxable income, is it?

A: It all depends on whether you are trading. If you sell unwanted presents, or items after moving house etc - you need not tell H M Revenue & Customs about this income.

If you buy or obtain items to sell on and do this regularly and if you make a profit on goods you have bought/made/grown, then you are trading.

In this case you should register as self-employed with HMRC. You may also have to prepare accounts and submit them to HMRC, and pay tax on the profits.

If you are on benefits, you should notify the benefits office of your extra income – which could affect benefit claims/tax credits.

Example: Jim buys goods at car boot sales and sells them on eBay. It is trading, even if he only does it once a month.

Peter Bromiley ACA
AMS Accountancy Ltd, Swindon SN5 7XF
01793 818400
www.ams-accountancy.co.uk/about-us/ask-ams