Ebay trading assistant help needed.

Crowqueen

Pembroke wrote: »

Well actually I was thinking of it both ways. If the item is for sale at more than £2.34p and the 30,000 items is per year then that's over the £70,000 threshold and they will have to charge VAT on the item price (which if I remember Ebay rules has to be included in the advertised price) and if the item is selling for more that £23.40p the OP will have to charge the seller VAT on her fee as well.

Then in January the VAT amount charged increases (does the threshold increase as well ?). I think I would have employed an accountant a long time before then.

You're right, I posted based on the 10% commission thinking £30,000 was the likely turnover, but of course, reading one of the links Soo provided, your turnover is calculated based on the actual sale price of the goods, so that does take you over £70K just on this job alone.

I think you do need professional advice.

EDIT - thanks, Soo, the link was very illuminating.

mobile48

Crowqueen wrote: »

VAT threshhold is £70K pa (£17,500 per quarter), so if the OP is only getting £3,000 out of this (and is certain it's not a scam), then there's no need to worry about that aspect of it, though obviously combined with other trading income it's something to think about.

I am not an expert so talk to an accountant. Do Postage and packing charges count as turnover if so if the items costed around £2 to post then you may be over the threshold. Does an agent need to charge buyers VAT on behalf of a client? I have no idea but these are the type of questions I would be asking.

Crowqueen

Yes, turnover is takings before any costs, so P&P charges will count towards your turnover.

e.g. an item sold for £2 + £2 postage = £4 turnover.

The link Soo provided stated that the way trading assistant turnover is calculated is not solely on the commission you end up earning but on the price you sell the goods for.

Off what figure is your commission based?

BillTrac

Excuse my ignorance, I don't use ebay. But why would someone want you to sell possibly £70k+ worth of goods for them. Why wouldn't they do it themselves unless it was a bit dodgy? I mean it isn't like they would have to open a store and pay rent etc, all they have to do is post it up surely?

Crowqueen

BillTrac wrote: »

Excuse my ignorance, I don't use ebay. But why would someone want you to sell possibly £70k+ worth of goods for them. Why wouldn't they do it themselves unless it was a bit dodgy? I mean it isn't like they would have to open a store and pay rent etc, all they have to do is post it up surely?

There may be a lot of reasons. OP seems to be fairly sure this is legitimate, so we're treating it as if it was.

I was once employed as a typist because my boss, who ran a couple of small charity funds, couldn't/refused to use a computer. She could have taken a course, but she was happier to pay someone else to do that for her. Likewise, the person with all this stock may want to hire someone who knows eBay more intimately than they do because they only have this job lot to sell there.

mobile48

10% for storing, selling, posting and dealing with after sales why would they not do it?

amcluesent

>would they not do it?<

Plus if OP is not a business seller, they can get around the Distance Selling Regs so buyers rights are reduced?

BillTrac

Thanks for replies. I was just curious how it would work, and why you would let someone else get a cut for what looks like not too much input.

bris

amcluesent wrote: »

>would they not do it?<

Plus if OP is not a business seller, they can get around the Distance Selling Regs so buyers rights are reduced?

Any one selling 30,000 items as a business deal is a business seller though.

soolin

amcluesent wrote: »

>would they not do it?<

Plus if OP is not a business seller, they can get around the Distance Selling Regs so buyers rights are reduced?

I think this is one instance where we can be quite certain seller is a business.