Ebay - register as business or not?

ibz75

Hi all,

Need some advice from experienced ebayer's. Basically I'm a computer geek who has collected a small fortune in computer parts over a few years. Most of the parts are specifically for enthusiasts and gamers. I've been monitoring ebay and some of these bits sell very well.

My main worry was that I may be seen as a business seller if I sell so many similar bits. I can probably gather about 100 bits from my old PC's!!!

I spoke to a New Business advisor at HMRC and was told that as long as my stuff had been for my personal use, then I can sell without registering as a business.

But Ebay fees seem lower for business sellers, so do you think it would be more beneficial to register as a business?

What are the advantages/disadvantages?

If you are a business seller, do you get taxed on total sale (item+postage) or just the item?

P.S. I have seen hundreds of 'private' ebay sellers who seem to be selling for profit; either that or they buy and sell their personal items every day!!!:)

Thanx

fengirl_2

You need to separate out Ebay's rules and the tax rules.
I dont know what Ebay's rules are on registering as a business with them, but whether you do or not does not necessarily make you a business for tax purposes.
As HMRC says, if you are selling your own stuff, then you are not trading and you dont declare it. Don't worry what you think other people are doing, if you are selling your own stuff, you dont have to worry.

ibz75

Thanks for the advice. I am working full time and the last thing I want is to be queried over tax avoidance (sackable offence in current climate!)

Once I have sold my personal items, I may look at buying and selling for a profit. I usually pick up bits from computer fairs and car boot sales.

If I was to do this as a business seller, how would I provide proof of purchase if its cash in hand? I know I could ask for a hand written receipt but some people insist its 'sold as seen' - no receipt!

fengirl_2

You can't produce prrof, you just have to make sure you record all transactions religiously.
If you were accused of tax avoidance, there is no way HMRC would tell anyone, let alone your employer.