Hi all, hope you're doing well.
A few months back I went to America and bought a new camera - an RX 100 VI - on a great deal at a local camera shop to where I was (OH). Now I'm looking to sell it in the UK as it's just not for me as I prefer the bigger and easier to handle chassis' of full sensor DSLRs. I didn't pay VAT on the camera when entering the UK as I don't have the box for the camera, and so selling the camera will be profitable. Should I be worrying about this or just keep my head down? This after tax website says I am in the 40% tax band - will I pay that on the sale? Really not sure what to do here so any help will be much appreciated
+ Reply to Thread
Results 1 to 3 of 3
Strictly speaking, with any item sold at a profit you declare the profit (not the sale) and pay Income Tax at your highest tax band, in your case 40%, on the profit.
If you complete a self-assessment tax return there would be a place to show that. If you do not complete a self-assessment return then, legally, you should inform your Income Tax Office of the profit. In practice, I would guess that many, Ebay traders for example, do not declare such earnings. Ultimately the risk is yours.
Trust that you can sleep well having 'smuggled' that camera into the UK thus avoiding VAT and any import duty.
IMHO if this is new camera never used after purchase plus you doing this regularly (i.e. buying and selling) then you should pay tax with all that stuff, but if camera is used, you not doing this in regular way then i think you should only tax your profit within annual tax declaration... of course no declaring anything and pretend that you are stupid (not aware of tax regulation) is a option - not sure how tax office work in UK - in my country you are guilty by definition and you must prove lack of guilt - even delaying declaration by few hours make you serious tax offender - no mercy, guilty and fined also placed in register of tax offenders.