Dac7

Neiljones

Why do I need to fill in this form if I am a private seller. And selling off Lego that I have had for over 50 years

Lawrence

In the e-mail that you received, there should have been a link to the government website with some more information here https://www.gov.uk/guidance/reporting-rules-for-digital-platforms

SavioryBricks

Having 135,045 items and many "new" items from newest sets is really not what one would expect from a private collection/seller that you've had for 50 years... That's exactly why DAC7 was created.

Neiljones

@Lawrence yes there was but I just don’t understand what it is saying. I am not a business just trying to get some money in from all the Lego I have had for years. The grandkids have no interest in Lego anymore. Have been given back all the Lego that was given to them as gifts.

NoahsBandP

UK government has been saying they were cracking down on this for ages, you can earn £1000 tax free from selling your own possessions. However if you sell regularly (30 times a year) they class you as being a trader so expect you to file a tax return where you can use your £1000 trading allowance to offset any profit made. You also can use your personal tax free allowance and deductables to reduce the amount of tax owed if any.

I refer you to the below source as a great reference and will help you determine if you are required to register for self assessment.

https://www.gov.uk/government/publications/selling-online-and-paying-taxes/selling-online-and-paying-taxes-information-sheet

Neiljones

@NoahsBandP thanks for the information. The way I read the article is that what I am selling is my own personal property from over 50 years of collecting and given to me as a child. It is a one off sale but is taking years to list and sell.

NoahsBandP

I get what you are saying and my store is also that way as none of the things I have are purchased to sell on but the taxman adopts a one way approach for all regardless. They just care about income gained and then it's down to the individual to prove how it got there and if they are due their cut. I imagine lots of people not just on brickowl are going to be affected by this resulting in government pounds wasted chasing pennies. Good luck to us all.

Neiljones

@NoahsBandP so if I go to a car boot sale and it takes years to sell. Going by the government website I don’t have to pay tax even though for argument sake I can sell the whole lot for 50 K. Because I do it online and I sell 2k worth of Lego I have to pay tax on it? Even though it is as far as I’m concerned it’s a hobby just to keep me busy.

NoahsBandP

They're going after car booters that sell regularly as well although I have not read how they are meant to police it with them. They are relying on online marketplace operators like brickowl and eBay etc to report us with the threat of fining them to do the dirty work for them.

White Horse Bricks

Up to £1000 is classed as incidental earnings of a hobby. If you make more than that selling, you need to declare it as income.

Neiljones

@SavioryBricks just for your information all the new bricks we have, have come from sets that we have bought over the years, and never built. We still have 6 sets that are unopened and the brick count is just under 40,000 bricks. Just as you say they are from newer sets does not mean we were not collecting them. Yes we are sad to be selling them but our kids and grandkids are no longer interested in Lego. We also have 8 other sets that we have built and need to be broken up which will account for another 24,000 bricks.

P6tu

OT:
@Neiljones , if only my parents would have such amount of Lego bricks to share...

Neiljones

@P6tu when I first met neil and went into his room at his parents house I couldn’t believe what I saw. There was lego everywhere. He had a blue train track all around the floor and building around the track. I don’t remember him ever getting shot of anything until now. Over the forty plus years we have been together he must have spent tens of thousands of pounds on lego. Sadly we don’t have any pictures of it. Regards Julie

boundher

@NoahsBandP with the car booters as you say, the tax man has been collecting car registrations, has been doing for years, a friend of mine changed his number before going to car boot, then changing it back again, another way is to cover your number whilst there but that doesn't stop them watching arrivals and departures, you just can't evade the tax man... poor peeps on ebay

Jiries

@boundher I often see car booter sellers same every week but those one off ones doesn’t earn so much but how they can know how much it raised since most are cash transactions. I don’t go where I live now is rubbish compare to Hook Arena in Epsom. It also wondering if number of UK stores will be culling closing due to this now as some are one off stores. It show 2088 in BrickLink was 440 when I joined so might see a large drop back.