Inland Revenue targets eBay traders

Accountant Saffrey Champney has warned that people trading on eBay to supplement their income are increasingly coming under the watchful eye of the Inland Revenue.

Individuals and business are being targeted. Business often use the web-based auction system to off-load unwanted inventory and office equipment, leading to tax liabilities.

Most items up to the value of 6,000 can be safely traded without any capital gains implications. But for sales over that threshold, the Revenue would be interested. Saffrey Champneys advises that individual and businesses should be aware that such activity must be declared on annual tax returns. Individuals selling high-ticket items will be liable for 40 per cent capital gains tax.