how many phones can we order online? HELP

MUHAMID

Hi everyone?
I couldnt decide where to put this thread?any way im putting it here:

My friend started selling phones on ebay and he is selling surprisingly about 50 phones a week.he orders all the phones from online.
He was asking about will there be any problem from income tax people or can we do such buying and selling privately without any business registration?
Thanks in advance
-MUHAMID

Edinburghlass_2

I'll just move it for you to the Ebay Board where the experts there can tell you what the tax man will expect

Sugar_Coated_Owl

MUHAMID wrote:

He was asking about will there be any problem from income tax people or can we do such buying and selling privately without any business registration?

As you are buying to sell then yes you do need to register for tax. I wouldn't have thought being VAT registered was required.

MUHAMID

razorbladekisses wrote:

As you are buying to sell then yes you do need to register for tax. I wouldn't have thought being VAT registered was required.

do u know wher to contact for register for tax?if he will not register then what is the possiblity?

Sugar_Coated_Owl

Are you currently living in the UK?

MUHAMID

my friend(who sells phones) lives in the Uk but he is also an oversea's student.

Sugar_Coated_Owl

It's probably best for your friend to phone and check. The number is 08459 15 45 15.

I forgot to mention that it's tax and national insurance that your friend will need to register for. There may be some kind of exemption/reduction on this if your friend is a student but I'm not entirely sure.

sarahlouise210

Ebay is monitored by HMRC - if you do not register you may be caught out! Your friend will get tax free allowances to set against the Ebay income and expenses will be allowed to cover things like the cost of the phones in the first place, listing fees, etc etc. HMRC will also want to establish his residency status. by the way...where is he getting these cheap phones?? Go on share the website with us!!!! ha! (As long as he is not making more than £61000 a year then he should not need to register for VAT)

rdwarr

sarahlouise210 wrote:

(As long as he is not making more than £61000 a year then he should not need to register for VAT)

No, that £61,000 VAT threshold relates to turnover, not profit. This equates to far fewer than 50 phones per week.

Moglex

rdwarr wrote:

No, that £61,000 VAT threshold relates to turnover, not profit. This equates to far fewer than 50 phones per week.

Yes, and it's not something you want to get wrong as the VAT people are not in the least forgiving.

sarahlouise210

I am well aware that the 61,000 relates to turnover! without knowing what he is actually selling the phones for how can you decide if turnover is more or less than 61,000 ??