Making the most of a car boot sale

Lots of people spend a weekend morning at a car boot sale, as a buyer, a seller or both.

Most of the time it is simple. A few rules sit behind it, though. They cover when a seller has to tell HMRC, what anyone holding a sale has to do, and what a buyer can expect.

Finding good things to buy

A seller at a car boot may be a private person or a trader. Citizens Advice suggests checking an item carefully before you buy. You can also ask the seller to show you that something works.

Selling your own things

GOV.UK says you are unlikely to pay tax when you sell personal items from your home, like the contents of a loft or garage. HMRC says that selling unwanted belongings from time to time does not usually need to be reported, whether you sell in person or online.

A single item or a set sold for £6,000 or more is different. You may have to pay Capital Gains Tax on the profit. HMRC's examples include jewellery, paintings, antiques, coins and stamps.

When selling becomes trading

Some sellers buy things to sell on for more than they paid. HMRC gives the example of someone who buys at car boot sales or charity shops to resell, and does it regularly. That person is likely to be trading.

Making things to sell for a profit counts too. Crafts, food and upcycled furniture are among HMRC's examples.

Traders get a tax-free trading allowance of £1,000 each tax year. The tax year runs from 6 April to 5 April. The £1,000 is your income before expenses, and it covers all your side earnings together. Above it, you need to register for Self Assessment and tell HMRC.

HMRC says traders are responsible for keeping full records of their sales, income and costs.

Selling online as well

Some sellers also sell online. New rules began on 1 January 2024. Online platforms now report some sellers' details and earnings to HMRC each year.

A platform reports a seller who makes 30 or more sales of goods in a calendar year, or receives about £1,700 or more for them. HMRC says a report does not mean you owe tax. The usual rules decide that.

Holding a car boot sale

In England, landowners can use open land for a market for up to 14 days a year without planning permission. This sits inside a wider limit of 28 days a year for temporary uses of land. The rule excludes land within the grounds of a building. Council guidance, such as South Staffordshire's, applies this rule to car boot sales. A council can also remove the right in its area, and then a sale needs planning permission.

Some councils in England and Wales have adopted a rule on temporary markets. Where they have, the organiser and the landowner must give the council at least one month's notice. A temporary market here means five or more pitches, held outdoors and off the road. Sales for charitable, social, sporting or political causes are exempt from the notice. Your council can tell you whether the rule applies in your area.

Your rights as a buyer

Citizens Advice says you have far fewer rights when you buy from an individual.

If the goods are as the seller described them, you have no right to return them. A buyer from a trader has more rights. Citizens Advice says you may be entitled to a repair or a replacement for faulty goods, or a full refund if you can prove the fault.

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