jollyjayne
11th August 2007, 18:30
Like a number of others on this forum, from time to time, I do some trading on ebay and other areas. As I intend to develop this area, I decided it best to do it legally and inform the tax people as I believe this should be done within 3 months of starting up, even if not a lot of money is made, and it is more of a hobby. There is a lot of business set up software available out there covering basic accountancy and book-keeping. Can any members recommend what sort of things I should be looking out for. I attach some info I found on another site.
Thank you
JJ
If you sell on auction sites (eg ebay, ebid etc) or anywhere else for that matter and holding stock you are a business. Pure and simple. You should be registered with HM Revenue & Customs as a self employed person and either claiming the 'low earnings' exemption or paying self employed National Insurance on a monthly basis. You will also be liable for tax on any 'profit' you make (total income less cost of sales). So for the many eBayers who think they can sell and not pay a penny in tax because it is second hand goods or whatever are totally wrong and the Revenue will not be smiling when/if it finds out. The Revenue is aware that it is losing mega £ in taxes from the likes of eBayers and I believe it will only be a matter of time before they actually get around to taking action.
Thank you
JJ
If you sell on auction sites (eg ebay, ebid etc) or anywhere else for that matter and holding stock you are a business. Pure and simple. You should be registered with HM Revenue & Customs as a self employed person and either claiming the 'low earnings' exemption or paying self employed National Insurance on a monthly basis. You will also be liable for tax on any 'profit' you make (total income less cost of sales). So for the many eBayers who think they can sell and not pay a penny in tax because it is second hand goods or whatever are totally wrong and the Revenue will not be smiling when/if it finds out. The Revenue is aware that it is losing mega £ in taxes from the likes of eBayers and I believe it will only be a matter of time before they actually get around to taking action.