ebay & tax

cafenervosa_2

Hello, I began selling on ebay 1 year ago and it has slowly build up into a part time business. However I have not registered for tax but now I feel I need to. I do have another part time job so I am paying my tax there. What is the best way of me going about it, If the Inland Revenue want all my figures from when I started then I will find it hard because I lost my record of all my sales for from the first 8 months or so. When I register will I need to backdate all my figures or is there away I can just start a fresh now?

Also I find it confusing how ebay invoice you from 15th - 15th each month but the paypal invoices are 1st - 1st each month.

thanks in advance for any advice,

Col

Raggie

if you only have a second income from e-bay then ask the inland revenue and they will send you a tax form.

When completing it decalare the e-bay business as a second income.

If however you turn over is sufficient then you will need to look at VAT and other stuff, and which point you should wait for some one more knowing to come along.. 'cos its outa my depth..

Nadia

Hi. I'm a newbie moneysaver. I am about to start selling on ebay but only on a small scale. eg: clothes that my kids have outgrown and similar small items. I have a question for the experienced ebayers out there. Should I add whatever profit I get from these sales to my tax form ( obviously they will be only small profits if at all) ??? I have a full time job so this ebay selling will only be for getting rid of things around the house. Any feedback is much appreciated.

Cheers
Nadia

Nadia

Thanks gizmoleeds. I thought so but wanted to make sure.

Cheers.

cafenervosa_2

Thanks for the advice guys. I am still a little confused as I am not a business as yet.

Here is an interesting artical that states you are allowed to earn upto £8,200 before you have to pay tax on your profit.

http://www.thisismoney.co.uk/help-and-advice/ask-an-expert/tax/article.html?in_article_id=400152&in_page_id=112

??

Angie8

cafenervosa wrote:

Thanks for the advice guys. I am still a little confused as I am not a business as yet.

Here is an interesting artical that states you are allowed to earn upto £8,200 before you have to pay tax on your profit.

http://www.thisismoney.co.uk/help-and-advice/ask-an-expert/tax/article.html?in_article_id=400152&in_page_id=112

??

This article is referring to Capital Gains tax and is a little misleading.

Because you are selling as a trader it's income tax you need to pay. You will have to pay tax on all of your profits because you already have a job and will have used up your tax-free exemption already.

soolin

cafenervosa wrote:

Thanks for the advice guys. I am still a little confused as I am not a business as yet.

Here is an interesting artical that states you are allowed to earn upto £8,200 before you have to pay tax on your profit.

http://www.thisismoney.co.uk/help-and-advice/ask-an-expert/tax/article.html?in_article_id=400152&in_page_id=112

??

What a very odd article...Capital Gain tax is not the tax a trader would pay. Like Angie8 says traders pay Income tax and national insurance contributions (if appropriate). Selling on ebay is just like selling on a market stall, or running a little shop, you pay income tax on your profits, ie profit after taking into acocunt all expenses.

Capital gains tax is what you would pay if you were selling your own items as it represents a tax on the gain in price between buying and selling an item for your own personal use, and would be indexed to take into account inflationary uplifts. In reality it would be very difficult to end up with a CGT bill , unless of course you were selling off several thousand pounds worth of valuable antiques or something!

It looks like the person writing the article has missed out a paragraph explaining the difference between selling for profit, and selling personal items.

Soo

shohaib

As im 18 and a student does that mean i have to pay tax for selling on ebay, hate the word TAX if it was up to me i would not have any sort of tax and just keep the money flowing from the bank of england. I would have Upma Lumpas as my workers at the bank of england and would send money to every person in the UK. You know the way you collect your letter, the dog goes running to the front door, Postman throws the letters in. Instead of finding £300 phone bills, You get fresh £20's totalling £300 everyday of the week. Apart from Sundays thats the day the umpa lumpas go to church. That would solve the whole issue but then again everything would be either let me think . . . . really expensive or cheap. Well it is a good dream. Oh yeah its cheap duh . . . LoL

shohaib

Can i make my own tax "Umpa Lumpa Tax" where everyone pays a penny, twice in a year. That would make me about £2 million. Or someone could just write out a cheque, much easier less time consuming. Any offers . lol Gizmo fanx for the info

barriejohn69

I have got a spreadsheet that is widely available for sale on ebay(not by myself). It is by an accountant and seems to work. As I don't sell enough to worry about it I don't use it but I can explain any problems anyone has with the spreadsheet. PM me with your email address and I will forward it asap. Also I can point you in the right direction with regards to tax.

Contains_Mild_Peril

soolin wrote:

It looks like the person writing the article has missed out a paragraph explaining the difference between selling for profit, and selling personal items.

A bit off topic, but I'd just like to point out that bad editing is not necessarily the writer's fault; the error is probably the editor's.