Make £5k in 12 weeks? who is up for a game?

Hannah_10

So let me get this right, I have got to register not even as a self employed sole trader, but as an actual business, with HMRC for two 50p purchases because I have listed those items for sale?

The cost to the country of HMRC even printing that form would be greater than anything they would ever recover and at some point in thier lifetime virtually every person in the UK will have bought something with a view to selling it on, so everyone's involved in tax evasion? In order to process the annual tax returns required we would end up like the former East Germany when every 7th man woman and child worked for the state. It wouldn't be workable.

NiceGuyEddie_2

Hannah_10 wrote: »

So let me get this right, I have got to register not even as a self employed sole trader, but as an actual business

I'm not sure what you mean by this?

And with regards to the rest of your post, there's a difference between £1 of stock, and trying to raise several hundred/thousands.

Hannah_10

Well having just come from the Business Link site they say that a new sole trader (self employed, no staff) has a lot less forms to fill in with HMRC than a new business.

That there is a difference between £1 and thousands of pounds would seem utterly logical, but what I really want to know is what IS that difference and most importantly where is the dividing line?

taxsaver

OK. I own an accountancy practice so I will try to help here.

Firstly as far as HMRC are concerned it's very simple. You must declare ALL income; end of story.

Now, as has been mentioned already, it is perfectly fine for you to sell chattels (that is goods that you own and have used personally) and there is no need to declare this, mostly because almost always (yes there are always exceptions) you will be selling those for less than you originally paid for them anyway. However, even there issues can arise with Capital Gains Tax, but there is no need to explore that here now.

In essence there are only three business types; Sole Trader, Partnership and Limited Company (there are a few other variants but they are far less common and not relevant here).

This game will only realistically involve sole traders or perhaps a couple working together as a partnership. ANY profit that you make from these activities MUST be declared if you wish to remain legal and above board.

Remember though that profits arise after the deduction of not just the initial purchase price of the items which you sell at a profit, but also any expenses which you incur 'wholly and exclusively' (HMRC speak)for the purpose of the business, such as listing fees or if car-booting then pitch fees and the costs of travelling to and from the site of the sale etc., etc..

Strictly, you should also advise HMRC within three months of commencing trading and may be subject to a fine of £100 if you do not. Once you have advised HMRC that you have self-employed income then they will start to send you an annual tax return to complete.... which is when (thankfully for me!) most people look for an accountant to assist them.

HMRC really don't care whether YOU think you are self-employed or not or whether you think it is fair or ludicrous levels of regulation and bureaucratic nonsense. If you are trading with a view to make profit you ARE self employed and should declare that to them. In case you are wondering (as people often do), yes you CAN be both employed and self-employed at the same time.

I hope this helps.

HOLIDAYMAD_2

well im a bit thick, id def want to have a go, but i dont know where to start is there a link for ebay.
what would you get for popular books ie list as a job lot or individual in great condition soft or hard back, my house is full of rubbish i dont need to go searching its here.

How do you advertise fake copies but are great copies.

Cornish_piskie

HOLIDAYMAD - the best way to find out about how books sell and the best way to list them is to have a look at listings on eBay for books of the type that you might like to sell. That way you can guage whether it's worth your while. The cost of listing the item as well as postage, packaging and any expense incurred getting to the post office has to be taken into account and, to be honest, I don't bother selling my old books on there as it's hard to even recoup listing and postage fees. I'd rather pass them around family and friends or send them to the charity shop.

As for fake copies -don't even think about it, it's illegal!

MPH80

jimmo wrote: »

It wasn't done in 2006 when I retired and I don't know if it is done today but the technology to enable HMRC to do so is definitely there now.

BBC news article from 2007 reporting on a system called 'Xenon' HMRC were using to monitor EBay:

http://news.bbc.co.uk/1/hi/business/6354003.stm

Of course ... whether it's still in use is another matter ...

M.

HOLIDAYMAD_2

Cornish_piskie wrote: »

HOLIDAYMAD - the best way to find out about how books sell and the best way to list them is to have a look at listings on eBay for books of the type that you might like to sell. That way you can guage whether it's worth your while. The cost of listing the item as well as postage, packaging and any expense incurred getting to the post office has to be taken into account and, to be honest, I don't bother selling my old books on there as it's hard to even recoup listing and postage fees. I'd rather pass them around family and friends or send them to the charity shop.

As for fake copies -don't even think about it, it's illegal!

The hard books say current bestsellers in last 6 months id sell for say 1/2 pound i think at a car boot, so i was thinking of saying 10 books with the titles, job lot for xxx and collect only.

Bags i was going to say for EG very good look alike of LV etc , tell them its a copy but the copy is really good they came from the far east and are truely no different to the real mccoy, ive actually been stopped in the street and had stuff admired, i also have the real version and my stuff is a good copy.

NiceGuyEddie_2

Hannah_10 wrote: »

Well having just come from the Business Link site they say that a new sole trader (self employed, no staff) has a lot less forms to fill in with HMRC than a new business.

This is off the track of the original point slightly, but by 'business' do you mean a limited company? Because both a sole trader and a company are a business, they just have a different legal status Registering as self-employed is v. straightforward (even if that person then has staff, which sole traders are allowed to do) but company registration is rather lengthier.

Hope that clarifies it

jennihen

I'm up for this but have never sold on Ebay before.
I bought a sexy little black corset (brand new with tags) for 30p at a jumble sale yesterday so will register and start with that.