Hardware & Technical HOTAS upgrade - concerns with selling old one?

[politecyborg]

Hi! I received my current HOTAS (Logitech, lots of white and black. Not a clue what model it is, I'll check soon) as a gift a year or so back and I've decided I want to upgrade - I'm thinking of getting a Thrustmaster Warthog but open to suggestions if there's anything as good for cheaper

Anyway onto the real question-I'm worried about selling the Logitech thing, I recently stepped up my hours at my part time job so I earn just under the personal allowance amount (I do mean just - literally pocket money off it if I go by averages incl overtime). Will selling the HOTAS make me go over the personal allowance amount? I only realised I was so close after using this salary calculator thing recently, I rely on PAYE/my employer sorting everything out for me, maybe not for the best

Thanks for any replies

 

[DD_Crash]

I am sure that private sales of private own items do not attract the tax man.

 

[Shadowdancer]

You already paid for the stick, and selling it for less would technically be a loss

 

[Para Handy]

You already paid for the stick, and selling it for less would technically be a loss

Which unfortunately you can't claim as an offset on your income as it isn't essential for your business.

Seriously, selling stuff does not count as income for taxation purposes and the only possibility for taxation on selling personal stuff is capital gains tax which is not applicable 'cos you won't have made a profit and even if you did it would be well under the allowance of over £11,500.

TL/DR - flog what you like, don't worry about it.

 

[Bill Clement]

Your concern is well founded, politecyborg. Tax evasion is a serious business, with consequences for fraudulent behavior. However, HMRC are interested in pursuing those genuinely avoiding their tax responsibilities, not punishing citizens for earning a little pin money. You can earn £2500 from personal activities such as selling low value items or collecting tips before the Revenue will require you to fill in a Self Assessment Tax Return.

Here's a link: https://www.gov.uk/income-tax/how-you-pay-income-tax

You can 'phone the helpline on 0300 200 3300 for further information or clarification, but as long as you don't go over that two and a half grand total in any given year you'll be fine selling whatever you like.

Hth.

 

[TorTorden_VR]

Your concern is well founded, politecyborg. Tax evasion is a serious business, with consequences for fraudulent behavior. However, HMRC are interested in pursuing those genuinely avoiding their tax responsibilities, not punishing citizens for earning a little pin money. You can earn £2500 from personal activities such as selling low value items or collecting tips before the Revenue will require you to fill in a Self Assessment Tax Return.

Here's a link: https://www.gov.uk/income-tax/how-you-pay-income-tax

You can 'phone the helpline on 0300 200 3300 for further information or clarification, but as long as you don't go over that two and a half grand total in any given year you'll be fine selling whatever you like.

Hth.

That is still as a minor business, for example if you enjoy Pokemon cards or something to the extent you figure you might s well buy ten packs from china and you flog nine of them to friends or other interested with a small profit to pay for your own habit.

If you buy a device for $100, and pay the sales tax on that, use it for a couple of years and sell for $50.
You are fine I don't know any nation that would expect you to even report this.

 

[Bill Clement]

That is still as a minor business, for example if you enjoy Pokemon cards or something to the extent you figure you might s well buy ten packs from china and you flog nine of them to friends or other interested with a small profit to pay for your own habit.

If you buy a device for $100, and pay the sales tax on that, use it for a couple of years and sell for $50.
You are fine I don't know any nation that would expect you to even report this.

Mate, no offence, but you're expressing an opinion, as was everyone else on this thread. That isn't what the OP asked for. Politecyborg expressed concern about a specific tax matter. I've given a reply about the legality of the situation. Not opinion, not reassurance, but a link to the way Her Majesty's Revenue and Customs deal with this exact situation. There is no 'sales tax' in the UK, your knowledge of other nations tax reporting systems is not at issue. I know you're trying to reassure our friend, but when someone asks for advice about a potentially serious financial matter we should really stick to the facts and the relevant policy in the place they reside.

Failure to file a Self Assessment return in the UK in circumstances where an individual is required to do so results in a £100 penalty. That's a steep price to pay for an oversight. Worse, if the individual cannot or will not pay the penalty HMRC can take action to recover the amount- typically using debt collection agencies or their power to seize goods under the Taking Control of Goods Act.

This may sound like a trivial matter, but Politecyborg seems to be aware of the potential for it to become a major headache. Fortunately, we can see from the information and guidance HMRC provide that this amount and any similar amounts earned in the current tax year won't become a concern for an employed person until the £2500 threshold is breached. Politecyborg has already stated that they are paying their personal tax via PAYE and NI, so Self Assessed rules do not (currently) apply.

Here in the UK small businesses are treated as either sole traders, partnerships or limited companies. Personal tax can be paid through the Pay As You Earn and National Insurance scheme for employees, or through various business taxes, including Self Assessment, for employers and sole traders. Navigate through the site I linked to for specifics- it's the HMRC portal on our governments official website.

Hth.