UK VAT on Selling Cameras Need Advice

[Alexarai]

Hi all,

I have a quick question regarding VAT on buying and selling cameras in the UK. Besides being a full-time employee and an amateur photographer, I also buy and resell cameras (mainly Panasonic and Canon). Last year, I had an unusually good year and made a profit of just over £4K from these sales.

Do I need to charge or pay VAT on this profit? Also, does this fall under any VAT threshold or exemption? I tried using VAT calculators, but I couldn’t find an option that fits this type of income.

Has anyone else been in a similar situation and figured out how VAT applies?

Many thanks for your help!

 

[F9DOG]

If your products have vat already paid (you dont specifically say, but I assume you are buying and selling on used cameras) and your turnover is less than £90k in any rolling 12month period, then you do not need to be registered for VAT or pay it. Your turnover is treated as income for Tax purposes and you need to declare it. Are you operating as a business? I would urge caution as HMRC will take a keen interest and then the difficulties you face start to mount up. They have their beady eyes on the regular eBay seller type

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Fuji XT-3 + Fuji 16-55, 50-140, 100-400

 

[a_c_skinner]

Ask HMRC. They are usually helpful. It is income taxable of course, but on the profits not turnove. You are well below the VAT registration threashold.

You may need to register with HMRC as a trader, but that is beyond my ken. Provided you've declared the income that should be easy.

Platforms like Ebay and Amazon now have to report your trading, so HMRC urgently.

--
Andrew Skinner

 

[Alexarai]

Hi all,

I have a quick question regarding VAT on buying and selling cameras in the UK. Besides being a full-time employee and an amateur photographer, I also buy and resell cameras (mainly Panasonic and Canon). Last year, I had an unusually good year and made a profit of just over £4K from these sales.

Do I need to charge or pay VAT on this profit? Also, does this fall under any VAT threshold or exemption? I tried using VAT calculators, but I couldn’t find an option that fits this type of income.

Has anyone else been in a similar situation and figured out how VAT applies?

Many thanks for your help!

Tell me This VAT Calculator Results Accurate or Not?

 

[a_c_skinner]

Yes, obviously it just takes the 20% off or adds it. But unless you are VAT registered it is not relevant. You need a TURNOVER of £90k for that to be compulsory.

VAT isn't a choice, it doesn't stop you needing to pay tax on the income either.

If you are selling stuff you've bought, used and sold at a loss there are no tax implications.

If you buy and sell at a profit that profit is taxable like all income and needs to be declared on self assessment.

This isn't the place for tax advice any more than your accountant can help you chose a camera.

--
Andrew Skinner

 

[DustyBin]

Ask HMRC. They are usually helpful. It is income taxable of course, but on the profits not turnove. You are well below the VAT registration threashold.

You may need to register with HMRC as a trader, but that is beyond my ken. Provided you've declared the income that should be easy.

Platforms like Ebay and Amazon now have to report your trading, so HMRC urgently.

I'm not sure that's true about profits. The guidelines I read stated that any income above £1000 means you should be declaring to HMRC and registering for self assessment.

If the OP is making £4k profit, then they definitely need to declare.

 

[a_c_skinner]

For income tax it is the income, for VAT it is turnover for registration and the value added to pay (having collected it of course from the buyers).

There is a point where you need to register as a sole trader (I think) but as I've said my accountant never gave me advice about cameras so this isn't the best place to ask.

The OP's description of themselves suggest self employment and if the OP needs to ask on here they need an accountant.

 

[ahaslett]

You need to register for VAT and charge it if your annual sales are £90,000 or more.

If you are self-employed buying and selling cameras, you need to pay income tax on your profits, and you need to consider your National Insurance position. You can have more than one employment, so profits on buying and selling cameras are part of your total income.

You should consider getting tax advice from an accountant, unless you understand and fill in a Self Assessment tax return.

A

 

[softmarmotte]

You need to register for VAT and charge it if your annual sales are £90,000 or more.

If you are self-employed buying and selling cameras, you need to pay income tax on your profits, and you need to consider your National Insurance position. You can have more than one employment, so profits on buying and selling cameras are part of your total income.

You should consider getting tax advice from an accountant, unless you understand and fill in a Self Assessment tax return.

A

Not a UK Taxpayer but was...You have a Capital Gains Tax allowance where no tax is paid up to a certain limit. The question is are camera sales regulated by CGT ?

Head to that Accountants office now

 

[a_c_skinner]

That is an interesting thought. I think if you own a Leica III, use it and then sell it for profit that is a capital gain but what the OP is describing is trading.

£4k profit is enough for HMRC to be very attentive to your tax affairs for many years once you've transgressed. The OP needs, as you, I and at least one other poster has said, proper advice.

--
Andrew Skinner