Ebay and paying tax

edited 30 November -1 at 1:00AM in Cutting Tax
4 replies 851 views
cooldudecolcooldudecol Forumite
784 Posts
edited 30 November -1 at 1:00AM in Cutting Tax
Do I still need to pay tax if I'm only making about £100 profit a month by selling goods on ebay?

It's also been more than 6 months, so I'm worried I'll have to pay a fine. Has anyone managed to talk them round this?

Replies

  • mrkbrrwsmrkbrrws Forumite
    337 Posts
    ✭✭
    You should be able to avoid a penalty as long as you pay any tax due on time, i.e. by 31 January 2010 for the year ended 5 April 2009.

    I assume you are making or buying goods to sell, rather than simply selling items that you bought for your own use.

    Any profit will be added to any other sources of taxable income and tax will be due if this totals to more than your personal allowance.
    I am an Accountant. You should note that this site doesn't check my status as an Accountant.
    All posts on here are for information and discussion purposes only and should not be seen as professional advice.
  • I didn't start till late April 2009 - does that mean I won't need to pay tax until the following year?

    And yes, I am buying new goods to sell on.
  • soolinsoolin Forumite, Board Guide
    67.9K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
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    Unfortunately you need to register as self employed the moment you start, so phone HMRC ASAP and get registered and if you grovel a bit they may well overlook any fines. You will also need to complete your return online now before the end of January with this years trading figures.
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I volunteer to help get your forum questions answered and keep the forum running smoothly. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
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  • Provided you started after 5/4/09 then you will not have a tax return to do this year and your first tax bill will be due by 31/01/11. Make sure you are saving towards this. Depending on your other income, at this level you will owe either 20% or 40% of your profits.

    You should register as soon as you start but I don't think there will be a penalty as lon as you register before the tax is due. You are best to do ot now though and the easiest way is to phone the Revenue - 0845 915 4515. As your profit is low you will also probably want to apply for exception from class 2 national insurance. Make sure you ask for this when you contact them.
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