Author Topic: Buying & selling PC parts - liable to income tax?  (Read 148 times)

Buying & selling PC parts - liable to income tax?
on: June 07, 2018, 19:08:49 PM
Hello :) I have a (fairly boring) topic I'm curious about - taxes. I buy and sell all sorts of computer parts on top of my full time job for an extra handful of cash, generally spent on more computer parts, and I am intrigued - is HMRC going to be hunting me down for unpaid taxes? I've not a clue how self assessment forms work and can't find much to help me figure them out. I've looked at this tax calculator: https://www.income-tax.co.uk/ and worked out how much tax I currently pay (a lot!!) but haven't been able to work out what the income from selling parts would be. What tax band would it go into? Hoping someone here does similar and can point me to an answer :)

Cheers!

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Re: Buying & selling PC parts - liable to income tax?
Reply #1 on: June 11, 2018, 18:12:18 PM
I believe you have an allowance each year as the parts are used, i think they are more interested in chasing Ebay traders doing £5000 a month tax free and claiming benefits full time for a non existent ankle sprain.

I know a bloke claiming full rate incapacity benefit and yet manages to walk round bootsales for hours looking for items to sell through his Ebay business which is made £20k on last year.
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  • Offline Dave

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Re: Buying & selling PC parts - liable to income tax?
Reply #2 on: July 28, 2018, 00:50:54 AM
Perhaps a bit late for a reply to this but I'm slightly bored.

I think this can be a bit of a grey area and the answer is really it depends.

Now if you were to set up a Ltd company (perhaps applicable if you were doing serious volume on Amazon/eBay) then it becomes quite clear-cut - you're subject to income tax for any salary you pay, ditto to tax on any dividend payments and if you close the company down then potentially you get entrepreneur relief.


When you're an individual doing this there are two possibilities - capital gains tax or income tax. Now if you've not got other investments etc.. and aren't otherwise using your CGT limit then you could perhaps just make use of that. If it is a few grand a year part time from sporadic buying and selling + you have no other CGT liabilities then you've probably got no tax to pay.

It might well be worth phoning up HMRC but I believe the main thing here is whether or not you're carrying out a trade. If you've gone a bit further than a bit of sporadic buying and selling for a bit of profit and have got an online shop, brand name, business bank account etc.. then you're probably looking at income tax instead (then again you have the possibility of making deductions for business expenses etc.. which could perhaps include your PC etc..).

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