Tax on selling on ebay

chja

Don't forget, the tax is on the profit, so if you are selling for £1600 but it costs £1000, only £600 is taxable income.

HMRC have produced a guide for those that sell online or at boot sales - http://www.hmrc.gov.uk/guidance/selling/index.htm

soolin

livelyred wrote: »

So how do you delare it and if i dont what happens ?

There is a dedicated number to declare self employment, don't know what it is off hand. Just phone them and explain that you are strating a small business but are unlikely to turn over more than a few hundred every year.

You are supposed to register within 3 months of starting to trade otherwise there are fines and penalties levied.

livelyred

Thanks for telling me all this i new nothing about having to pay tax for selling a few items on ebay so if i phone up the local tax office they will sort all this out for me and i wont pay tax will i for selling not alot on ebay ?

chja

livelyred wrote: »

Thanks for telling me all this i new nothing about having to pay tax for selling a few items on ebay so if i phone up the local tax office they will sort all this out for me and i wont pay tax will i for selling not alot on ebay ?

They will probably flag you as needing to do a tax return - not the end of the world, but a bit inconvinent.

If you get someone nice at the tax office, they might just say that in view of the amounts involved, forget you ever had the conversation

livelyred

chja wrote: »

They will probably flag you as needing to do a tax return - not the end of the world, but a bit inconvinent.

If you get someone nice at the tax office, they might just say that in view of the amounts involved, forget you ever had the conversation

So i would still have to fill in a tax form if they dont flag it ?

soolin

livelyred wrote: »

So i would still have to fill in a tax form if they dont flag it ?

Yes, that is what is meant by a requirement to advise the revenue. If you tell them you are trading then they will expect a return at end of year but that does not mean you will pay tax if your income is less than your personal allowances.

Go read the link supplied by Chja.

chja

livelyred wrote: »

So i would still have to fill in a tax form if they dont flag it ?

You only have to fill in a tax return if you are asked to, but you are supposed to tell them if you think you need one.

Best bet really is just to call the helpline - they are quite human (or possibly Wookie).

StaffsSW

It is not only the tax issue to consider as a business seller - it is your legal responsibilities under a number of regulations - You must offer returns, you must show your contact details, your customers have the right to return for no reason within 7 days - meet all requirements of Distance Selling Regulations, E-Commerce Regulations, Sale of Goods Act, Consumer Protection Act, Unfair Commercial Practices Directive, Supply of Goods and Services - although this may seem daunting at first, it is all pretty much straight forward and a lot of common sense. More details are here - http://pages.ebay.co.uk/help/policies/business.html

When ebay enforced business registration on the site, it was, in my opinion, one of the best moves that they could have/had to make.

Many people try to fly under the radar, claiming to be a "hobby seller" - but there are plenty of Norris's out there actively looking and happy to press to report button.

It is easier to comply, than it is to duck and dive between regulations.

soolin

Absolutely Steve, no such thing as a hobby seller although the term gets used an awful lot.

I read somewhere that most reports to HMRC are made by persons known to the person, so that nice aunt or next door neighbour that takes in your purchases or mailing bags for your 'hobby selling' when you are out gets fed up and reports you anonymously.

livelyred

Thankyou all for your advice i will phone monday for advice.