Ebay and paying tax

cooldudecol

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?

mrkbrrws

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.

cooldudecol

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.

soolin

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.

Rolo_Tomasi

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.