Do I have to pay tax on my eBay sales?
Q I’VE had a sort out and decluttered my house, selling items on eBay to help raise a bit of extra cash during lockdown.
Do I need to pay tax on the money I’ve made?
A YOU don’t need to pay tax on sales of personal items. However, if you are regularly buying to sell on, then this would be classed as a business, and profits/income should be declared via self-assessment.
Q CAN you let me know what will happen to my pension if I pass away before I start to draw it? I have a final-salary pension.
A IF YOU die while you are contributing to a final-salary (defined benefit) scheme there is usually some form of life cover.
Normally this is paid as a tax-free, cash lump sum.
The amount will depend on the type of scheme – but typically it is based on a multiple of your salary or pensionable earnings.
The scheme may also provide a dependent’s pension to a spouse, or registered civil partner, and may be payable to dependent children.
You will need to contact your pension provider to find out what the scheme you are in pays out, and to whom.
Q I’M STILL working but I begin getting a pension that pays a monthly sum soon.
I want to put this into an ISA and save it for the next seven years, until I retire.
Is this the best approach?
A IT DEPENDS on your personal circumstances.
As you are still working full time, you may pay a higher rate of tax on this pension income as it will be added to your current earnings and that could push you into a higher tax bracket.
Rates on ISAs are pretty poor at the moment but if you don’t want any future tax implication on this pension income then that could be the best place to save it.