ebay business

prince

any seasoned ebay traders advise on what paperwork to print and keep should one wishes to start a business on ebay!

1. sales invoice and corresponding paypal confirmation receipt!
2. paypal receipt confirming sale of each item only!no sales invoices?
3. a summary of paypal receipt for collective items sold! no sales invoices?

which of the above satisfies legal requirements and are they any other methods of record keeping?

thanks

blue_monkey_2

I keep a record through Paypal and print a report at the end of the month. remember, your Income is BEFORE the fees are deducted, the fees are a business exense. It is different for me as I have external business as well but I record it as Cash In because people often add money for extras and then the Invoices via eBay are not correct.
You should keep receipts for everything, even if you buy a pen, it is all tax deductable and you have to advise the Inland Revenue within 3 months of trading else you'll get fined. Hope this helps.