Business or Private?

d.ross_2

macfly wrote: »

No they don't. Just saying you are a private seller doesn't make the law redundant.
There's also zero evidence of tax evasion. The assumption they are on benefits is also outrageous.

I was talking in general about why many sellers often stay as private sellers. And it does help them stay below the radar.

Obviously if someone challenged them in court, then it would be revealed that they are a business seller. However may buyers of low value items don't bother.

Mrs_justjohn

d.ross wrote: »

I was talking in general about why many sellers often stay as private sellers. And it does help them stay below the radar.

Obviously if someone challenged them in court, then it would be revealed that they are a business seller. However may buyers of low value items don't bother.

Ebay / Paypal don't give a rats backside about DSR anyway. They will side with the buyer in most SNAD cases whether the seller happens to be private or business. If you are talking about outside ebay then a court would see through the 'I am a private seller' excuse.

I think as a private seller it is probably costing them more to list and sell the stuff they have up. They could probably list more (and more cost effectively) by registering as a business and getting a shop!

I think people naively think that they are escaping obligations by being a 'private seller' when in reality they aren't. I don't think you can assume that they are not paying tax or are on benefits though. BUt if they are they will get found out eventually - what goes around comes around!

soapyjoe

macfly wrote: »

No they don't. Just saying you are a private seller doesn't make the law redundant.
There's also zero evidence of tax evasion. The assumption they are on benefits is also outrageous.

Why is it outrageous, they've obviously got a reason for not being honest and declaring they are a business.

olias

macfly wrote: »

There's also zero evidence of tax evasion. The assumption they are on benefits is also outrageous.

The point is, that if a 'private' seller is operating as a business and selling an item for profit with what is obviously a tiny mark up, then that coupled with a low volume of sales can only mean one thing. That they have another means of income - either benefits, in which case they are cheating the benefit system, or another job, in which case they are almost certainly above the threshold for paying tax, but are unlikely to be declaring their ebay income, if they are selling from a private seller account, and therefore, yes, probably evading tax.

This all leads to their being able to undercut legitimate businesses and make ebay a harder platform for a genuine business seller to sell through.

Olias

techspec

soapyjoe wrote: »

Why is it outrageous, they've obviously got a reason for not being honest and declaring they are a business.

Im many cases, i imagine its cos they don't want to give out their address - ebay is full of looneys

Mrs_justjohn

olias wrote: »

The point is, that if a 'private' seller is operating as a business and selling an item for profit with what is obviously a tiny mark up, then that coupled with a low volume of sales can only mean one thing. That they have another means of income - either benefits, in which case they are cheating the benefit system, or another job, in which case they are almost certainly above the threshold for paying tax,

Or maybe they have worked all their life or are idle rich and do not need to work to pay the bills (perhaps they are living at home with Mummy all expenses paid). Possibly they just do ebay for token beer money and £40 a week will not make them liable for tax


but are unlikely to be declaring their ebay income, if they are selling from a private seller account, and therefore, yes, probably evading tax.

but you think every person that is registered as a business is declaring all their earnings? Someone registered as a business is just as likely to be evading tax.

This all leads to their being able to undercut legitimate businesses and make ebay a harder platform for a genuine business seller to sell through.

Olias

Just playing devils advocate ....LOL I agree this particular seller should be registered as a business.

(On the whole I agree with you but it isn't always the case that your first guess / assumption is correct! especially with no actual FACTS to go on)

Mrs_justjohn

techspec wrote: »

Im many cases, i imagine its cos they don't want to give out their address - ebay is full of looneys

INclined to agree - Never had as many nutcase callers as I do now, with ebay having my phone number in the auctions!!

d.ross_2

Mrs_justjohn wrote: »

Ebay / Paypal don't give a rats backside about DSR anyway. They will side with the buyer in most SNAD cases whether the seller happens to be private or business. If you are talking about outside ebay then a court would see through the 'I am a private seller' excuse.

Yes I know that ebay/paypal think they are above the law, but they aren't. In fact when you buy from business sellers on ebay, it even states that the seller may have obligations under dsr's

Mrs_justjohn

d.ross wrote: »

Yes I know that ebay/paypal think they are above the law, but they aren't. In fact when you buy from business sellers on ebay, it even states that the seller may have obligations under dsr's

No you have missed the point I am making. Ebay / Paypal do not care (from the point of view of deciding disputes) whether you are a business or private seller. Yes they advertise that business sellers have to comply with DSR but they do not up hold them. DSR's would have to be enforced by a legal route outside of ebay, and a court would look further than the selling classification on ebay when deciding a claim.

Therefore sellers who register as 'private' when thay are a business are in actual fact not getting away with anything (If a buyer pursued it).

d.ross_2

Mrs_justjohn wrote: »

No you have missed the point I am making. Ebay / Paypal do not care (from the point of view of deciding disputes) whether you are a business or private seller. Yes they advertise that business sellers have to comply with DSR but they do not up hold them. DSR's would have to be enforced by a legal route outside of ebay, and a court would look further than the selling classification on ebay when deciding a claim.

Therefore sellers who register as 'private' when thay are a business are in actual fact not getting away with anything (If a buyer pursued it).

The point I was making was actually the other way around. Ebay/Paypal may find not in favour of the buyer using their own judgement. However legal obligations of business sellers override ebay's opinion. So a buyer gets more protection if the seller is a business.