Sold some guitars to deal with costs of moving, now worrying about tax?

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passionslay

New member
Hi! I've recently sold a few of my guitars, most online and another to a local shop. I've been told by someone that because it was a large amount of money I'll have to pay tax on it?? Surely this can't be right. I know basically nothing about what's taxable & isn't automatic any further than income tax, VED and VAT! I've had a look at this income tax calculator and figure out what I would pay with the money from the guitars and it's kind of saddening. Can someone put me out of my misery please?

Cheers
 
Re: Sold some guitars to deal with costs of moving, now worrying about tax?

As long as you don't post that info online you'll be okay .... oh wait.
 
Re: Sold some guitars to deal with costs of moving, now worrying about tax?

Not a tax advisor here. In the US if you made a profit (ie sold higher than you bought) you would have to pay taxes on it.

I hope you don’t ask a tax advisor which pickups to buy...
 
Re: Sold some guitars to deal with costs of moving, now worrying about tax?

If you are in the business of selling guitars, then any money you make has to be declared. If you are not in the business then you don't.
The only caveat would be something like vintage guitars where you might (due to amount) get into a capital gains tax scenario. But I doubt regular guitars would tip over the threshhold.
 
Re: Sold some guitars to deal with costs of moving, now worrying about tax?

Accountant here in the States so not an authority on taxes in the UK; however, my research found these:

From this Gov.UK page, you will have to pay Capital Gains Tax if you make a profit/gain when you sell/dispose a personal possession for £6,000 or more.

This article here also gives some help on if/when to pay or not pay.



Did you sell any item for £6,000 or more? If so, find out your costs if you can–if not try to find sale listings/MSRP data or anything else to help prove a cost basis. If not, I wouldn't worry about it as you haven't met their threshold.

That being said, your best bet is to check with a UK tax adivsor/accountant. Best of luck!
 
Re: Sold some guitars to deal with costs of moving, now worrying about tax?

How they going to pay for the next royal wedding you cheapskate!
 
Re: Sold some guitars to deal with costs of moving, now worrying about tax?

Blille said:
Not a tax advisor here. In the US if you made a profit (ie sold higher than you bought) you would have to pay taxes on it.

I hope you don’t ask a tax advisor which pickups to buy...
Click to expand...

This is the general idea of taxation, which I'm pretty sure is quite similar through Europe/North America. Though there can be caveats.

You pay tax when your profit tips over the threshold: So if unless you bought those guitars for something 10000 and got around 15000, hence making 5000 profit, I wouldn't worry about it.

I've been reading about taxation here in Finland flipping cars. The threshold for tax free profit per year here is around that 5000. And there has to be several deals, only couple does not make it taxable yet for individual person (company would be different) even if you do go over that.

But it may differ in UK surely.
 
Re: Sold some guitars to deal with costs of moving, now worrying about tax?

All Taxation is Theft.
Ooops.
 
Re: Sold some guitars to deal with costs of moving, now worrying about tax?

Demanic said:
All Taxation is Theft.
Ooops.
Click to expand...

I wouldn't go as far as to say ALL. You need to somehow pay for the roads you drive on, etc. That is paid with your taxes.

However, I do agree that most taxes that you pay as a business owner in Calif. is nothing less than legal theft.
 
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