how many phones can we order online? HELP

u2o

sarahlouise210 wrote:

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 ??

Because you said "As long as he is not making more than £61000 a year "

making = profit surely.

soolin

sarahlouise210 wrote:

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 ??

Turnover is easy to ascertain, just look at the bottom line figure. It doesn't need to be calculated really.

Soo

blue_haddock

sarahlouise210 wrote:

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 ??

Well if he is doing over 50 phone a week that equates to approx 2500 a year, now even an old brick of a mobile will fetch £30 so 2500 x 30 = £75000 in turnover. Now if the phones are new good spec ones then they could be worth £100 each so now we have £250,000.

Unless he's fibbing on the quantities it won't take many mobiles before the VAT man gets curious.

tigrul

Selling 50 phones a week is definitely a business activity. If caught by the taxman, there will be hefty fines. He needs to register as self-employed within 3 months of starting up. If he's on a student visa, though, he may well be prohibited from working, in which case what he's doing is illegal.

MUHAMID

He is on student visa and he is not working anywhere else.
as we know international students are allowed to work 20hrs/week in term period and 40hrs/week in holidays.
Its bit cofusing: can he do this business as his 20 hrs allowed work or it is illegal?

phanco

MUHAMID wrote:

He is on student visa and he is not working anywhere else.
as we know international students are allowed to work 20hrs/week in term period and 40hrs/week in holidays.
Its bit cofusing: can he do this business as his 20 hrs allowed work or it is illegal?

I'm afraid it is nothing to do with the hours he works - it is the profit being made that would be eligible for National Insurance and Income tax.

If he is buying phones for £50, selling for £100 then the £50 he makes is classed as income. As previously said there would be various allowances that could be offset against this figure but basically profit = income = taxable.

rdwarr

I think the "hours worked" question relates to Visa conditions rather than anything to do with tax. I would check with the Immigration Department on this.

tigrul

Ok, so the student visa allows you to work. That means there will be no problem with what your friend's doing, as long as he registers with the taxman.

Try reading here

http://www.hmrc.gov.uk/selfemployed/

And give them a call- they are very helpful, as long as you contact them first (within 3 months)- not the other way round!