Do I’ve to pay tax if I promote my Christmas items? DEAN DUNHAM replies

Can I promote my Christmas items and different gadgets I don’t need with out paying tax?

R.R., Chislehurst, Kent.

Dean Dunham replies: It is dependent upon what you might be promoting, why you might be promoting it and whether or not you make a revenue from the sale.

If you’re merely promoting private belongings you not need and for lower than they’d price to purchase, then such a sale wouldn’t appeal to any tax legal responsibility if you don’t make a revenue.

However, in case you are promoting gadgets you merely not need however for a revenue — comparable to work, antiques, jewelry, autos and equipment — you might have to pay Capital Gains Tax (CGT).

Unwanted items: If you’re promoting private belongings you not need and for lower than they’d price to purchase, then such a sale wouldn’t appeal to any tax legal responsibility

Your non-public automotive and particular person gadgets every price lower than £6,000 (or £12,000 for those who personal them collectively with another person, comparable to your husband or spouse) are excluded, so won’t appeal to a tax legal responsibility when bought.

‘Wasting assets’, or gadgets that the tax man accepts have a lifespan of lower than 50 years, are additionally excluded from tax legal responsibility, so you’ll not pay tax on the sale.

If you promote gadgets you bought particularly for re-sale after which make a revenue, it would set off a tax legal responsibility.

So, for those who snap up clothes or family bargains on-line then promote them at automotive boot gala’s or on websites such ebay and Gumtree, this will likely be deemed as a ‘trade’ — which means you’ll need to register as being self-employed with HMRC and pay revenue tax on any revenue you make.

Since April 6, 2017, you’ll be able to enhance your revenue by incomes an additional £1,000 a 12 months tax-free due to the buying and selling allowance. 

It consists of shopping for and promoting on-line in addition to cash made out of informal jobs comparable to dog-walking or babysitting.

You can earn £1,000 in every tax 12 months this fashion. As a common rule, this implies there is no such thing as a want to inform HMRC or pay revenue tax on the cash.

On high of the buying and selling allowance, you even have your tax-free private allowance. This is the quantity you’ll be able to earn earlier than paying tax, which is presently £12,570.

Should I signal my automotive over to my son? 

My automotive insurance coverage is simply too excessive and I don’t drive a lot so I need to signal my automotive over to my son. Are there any authorized pitfalls?

Okay.S., Lingfield, Surrey.

Dean Dunham replies: What are your long-term intentions in relation to your car? 

If you need to give it to your son as a ‘gift’, which means he’ll legally personal it and be free to do what he desires with it, together with promoting it, there are not any authorized pitfalls as long as you undergo the right strategy of transferring authorized possession with the DVLA.

However, for those who merely need to enable your son to make use of the car and subsequently retain possession your self, the place could be very completely different and will create authorized pitfalls.

You may very well be held liable, for instance, in case your son will get a parking ticket, has a visitors accident or breaks any legal guidelines of the street. You may also retain accountability for ensuring the car is insured, taxed, roadworthy and has an up-to-date MOT.

To restrict these pitfalls it is advisable to notify DVLA that your son is what known as the ‘registered keeper’ of the car and ask it to replace its information after which problem a brand new V5C doc.

This is the car logbook issued by the DVLA on registration of a car within the UK. Its major goal is to function a car registration certificates and supply the main points of a car’s registered keeper.

If you do that you’ll stay the authorized ‘owner’ of the car, successfully which means the car remains to be in your possession and you’ll retain accountability for ensuring it’s insured.

If your son is the registered keeper, which means he will likely be accountable to the DVLA and police in case of street visitors accidents, parking offences and dashing fines.

Finally, for those who nonetheless have a mortgage on the car, test that altering the registered keeper won’t contravene your settlement.

• Write to Dean Dunham, Money Mail, Scottish Daily Mail, 20 Waterloo Street, Glasgow G2 6DB or e mail [email protected]. No obligation may be accepted by the Daily Mail for solutions given.