Is it illegal to...?

[parrotlover]

if you are claiming job seekers and you are looking for work BUT dont get any replies and you decide to start selling bits and bobs on ebay or gumtree and you make around £400 each month from doing it, is it against the law to still claim JSA? These are used items that are being sold, not new, and its not a business BUT makes good enough money to live a proper life off whilst not working

[maclarencat]

Yes you are supposed to declare this income. It is no different to selling second hand items in a shop. Sorry. I dont know how anyone survives on jobseekers allowance.

[parrotlover]

exactly thats why we have restored to selling our bits and bobs in our home to make some extra money xx

[hc4361]

Are you buying goods to sell on?

[ummmm]

Good point hc. I would have thought you were able to sell things. Just not buy to sell...

[sara3]

just to let you know, we're currently prosecuting someone for selling goods on Ebay, but it is someone who appears to be making quite a good income.

you do need to be careful. in my opinion (this is not professional advice as I'm unsure), selling bits from around your house may be acceptable, but Ebay will provide (if asked) a statement of transactions.

[hc4361]

I've been doing a mental check of my home and I would be very hard put to raise £400 per month over a period by selling my non-essentials.
I'd get several thousand for my cars, which if I were claiming JSA, I would not declare to them, unless it was income-based JSA and not the 6 month contribution based.

If you are on any means tested benefit you should declare all monies you receive, but really would that include money raised from selling you car, or flogging your XBox and games to Cash Converters?

I don't know the answer, but have hopefully raised a question for those that do know.
As far as I am concerned selling your unwanted items on eBay is no different to flogging them to a second hand shop.

[hc4361]

Eddie51 - a surprising number of people DO get caught at car boot sales, via their registration plates, even if the car is hired.

[Skyline D]

It would come down to an opinion based on a balance of probabilities I expect. I know nothing about JSA and how income affects benefits but I do know a bit about what the Revenue considers "trading as a business" and what it doesn't and I'd expect the judgement process to be the same really.

As others have said you can sell whatever you like from around your house, your car, etc and not be taxed on it. Theoretically it might fall under Capital Gains Tax but only if the item raises more than it originally cost plus inflation which seems unlikely (except with gifts which would have cost you nothing of course). Even then there is a significant exempt band of capital gains you can make before it would be taxed.

If you are buying to sell then you are trading and the Revenue would seek to tax you on profits accordingly. If you bought a single item as Eddie describes then no-one would care in reality as there'd be nothing to attract attention to it and it would be easy to claim you bought it for own use and then decided you didn't like the colour or something. It's about a pattern. If someone is making £400 or so profit every month for several months and buying the things in regularly within a short period before hand then it will be taken to be a "badge of trade" and presumed as such.

I would imagine if you were deemed to be trading then by definition you can't be Job seeking?

[parrotlover]

i dont buy in anything, its clothes clothes and more clothes! I have managed to hoard so much stuff over the years that ive started to sell it now, and also i sell on carboots sometimes, and sometimes i buy used clothes on carboots and sell them if i dont want them on ebay or privately to friends or on gumtree. £400 is nothing and its not all profit as i have to pay all the ebay fees and paypal fees. I just wanted to check if it was not allowed or can you be caught about it as its only a low amount? Sometimes its only £150-200 a month as ive been selling my items that are mine from home for around 5 months now

[parrotlover]

and also sometimes i get given items from friends and family and freecycle so technically im not buying to sell, i am being given items to gift to sell on to make some money, is that wrong?

[sara3]

I'd say it's enough for you to be prosecuted, if you're caught.

[parrotlover]

youre kidding? wow even though i am still looking for work and sending off applications and cv's all the time and not getting any responces?

[sara3]

you're making money.. people are even helping you to make money.

thin ice..

[AlBags]

If you are TRADING .. then don't claim.
If you are selling things you pre-own .. ok.
If you are selling things you are given .. dodgy ground .. I would say you will be done if caught.

[parrotlover]

i find that awful to think you cant even sell your own pre owned items on ebay without getting done just because your on JSA - i could understand if i made a full time wage on it or was buying to sell on to make money! Crazy times...

[sara3]

"i am being given items to gift to sell on to make some money"

you said it yourself!

[hc4361]

Are you on national insurance contribution based JSA or means tested JSA?

[parrotlover]

ahhh not to worry i just saw that the account is all in my partners name as he uses it to sell his playstation games and he works full time so its not too bad