Paypal: Asked to Provide Business Information

Sugar_Coated_Owl

The OP said:

BusinessStudent wrote:

I have earnt £4,500 in the year and a half of trading on eBay

Surely by saying 'earnt' he/she is implying that is the profit made.

BusinessStudent

However, For a student you can make about £4,500 per year BEFORE paying anytax.

I have made £4,500 in a year and a half

Sugar_Coated_Owl

Surely you still have to declare that you are making this money though.

samanthaknd

YvonneCrossland wrote:

I'm sorry but if you are making £4.5k in 18 months for a hobby then you should be paying tax anyway.

erm maybe you are wrong?. if you are selling products at a loss then you don't have to pay tax, (thats what inland revenue told me)for eg. I went into office and said I sold books on amazon which i bought full price and then once read i sold them on for at least £3 less than what I paid. I was told that this is classed as selling at a loss and would not have to pay tax on this.

Sugar_Coated_Owl

The OP has said that he buys to sell though.

carrie483

BusinessStudent wrote:

However, For a student you can make about £4,500 per year BEFORE paying anytax.

I have made £4,500 in a year and a half

And didn't you say in a previous thread that you have another job? Working in a supermarket?

soolin

LULUBELLE wrote:

You can earn up to £900, before you have to pay tax on a hobby.

I think this has been debunked on different threads already. There was certainly no hobby exemption last time I saw the IR regulations.
If however anyone can post a link that confirms this exemption I am sure several users would be greatly interested.

Soo

soolin

The £4500 paypal limit is total money passing inwards through the account, it is not therefore profit it is turnover.

A basic set of accounts for ebay (or indeed any such pastime) would be total income, less all original purchase costs (including items bought but remaining unsold), less postage, ebay and paypal fees and all other incidental expenses. It is quite possible that turnover of £4500 could still equal a loss at the end of it, or ineed a minscule profit (have you seen what we are paying in fees?) :eek:

However the IR are more concerned with the business and regardless of whether it will ultimately be taxable or not, legally all sources of income should be declared.

Soo

jamminjamaica

i wasnt aware of this. how can you find out how much you have made off ebay in a year?

jenniferpa

soolin wrote:

The £4500 paypal limit is total money passing inwards through the account, it is not therefore profit it is turnover.

Soo

I'm still not certain that this is what the OP meant, he keeps saying "made" which to me equals profit, or does Paypal automatically generate this message when total volume reaches £4500? That I wouldn't be surprised by.

Jennifer