Advantages of a business account ?

soolin

Harry_Flashman wrote: »

Regardless of should. Can't see anyone registering to pay even more tax than they already do.

I think that depends on how honest a person is and possibly upbringing and peer pressure. Like most other sellers on here I am registered with HMRC and pay tax on my ebay busiiness (also on my small amounts fo income from Amazon)

Your suggestion that we MSE'rs are crooked is a little out of order.

Harry_Flashman

soolin wrote: »

Your suggestion that we MSE'rs are crooked is a little out of order.

Ah, that's where we part our ways then. I see nothing wrong with minimising what the thieves at Westminster take from my pocket.

lovinituk

Harry_Flashman wrote: »

Ah, that's where we part our ways then. I see nothing wrong with minimising what the thieves at Westminster take from my pocket.

So someone robbing from Tescos, for example, to minimise what the superstore takes from their pocket is ok in your book too is it?

At what level is it ok to dodge taxes - £10, £100, £1000? Where do you suggest the cut off is before people should own up and start paying taxes?

A small part of the reason the economy is the way it is, is because of people with the same attitude as you. Benefit cheats, tax dodgers - all the same.

Oh wait, your dealings are such a paltry amount (your words) they obviously don't count!!!

Hammyman

Harry_Flashman wrote: »

Ooooo - does that put me up there with Big Business ???? :money:

I don't think I'll be reporting to the tax office anytime soon over my paltry dealings. It's very rare I buy to sell and the earnings really wouldn't be worth their while investigating.

Well there is where you are wrong. How can you prove that you only do it rarely? For all we know, you could be at the car boot every Sunday. After all, you're already buying goods to sell at profit on Ebay and you could just be shifting stock on there you didn't sell that weekend. If you have no accounts and no proof, how can you back up your claim? You can't and when you can't they use what the average business in the same market makes and you get a bill based on that, regardless of how little you made.

Say you make garden sheds. You do one a week and make around £30 on it. You don't bother keeping receipts from suppliers nor do you give the buyers a bill. Shed companies in your local area make an average of £500 a week profit. HMRC get wind of what you're doing and do an audit. You have no proof so they look at what companies doing the same are doing in your area. You get a bill for tax based on £26,000 income backdated for as long as they can prove you've been doing it and you can't dispute it as you have no proof of income and expenses.

But it gets worse. DWP then get wind of it so any benefits or tax credits you were claiming get reviewed and then you get a bill for that as well. And DWP pass info onto the council so if you were getting HB and CTB, they'll have a go as well......

Hammyman

Harry_Flashman wrote: »

Ah, that's where we part our ways then. I see nothing wrong with minimising what the thieves at Westminster take from my pocket.

Neither do I which is why I made a loss on paper in year 1 on a turnover of £17k but put money in the bank every week.

I minimise what Westminster take from my pocket however the difference between you and I is that I do it legally. If you think you're so clever, I can always forward a link to this thread where you've bragged to tax evasion to HMRC fraud office and it is trivial to find out who you are when you have the power to request IP addresses...

marie-20

Sorry to 'piggy-back' onto this thread but I'm going to be setting up my own business in the next few weeks once redundancy is paid out however I don't want to upgrade my Ebay account to a business one even though I will be selling some of my stock on it as I won't sell enough to make it worth while but I will be declaring all of income and expenditure from my personal account to the HMRC but the way I'm reading this thread is that I have to have a business account on Ebay or am I just being dumb?

Thanks in advance!

lovinituk

marie-20 wrote: »

Sorry to 'piggy-back' onto this thread but I'm going to be setting up my own business in the next few weeks once redundancy is paid out however I don't want to upgrade my Ebay account to a business one even though I will be selling some of my stock on it as I won't sell enough to make it worth while but I will be declaring all of income and expenditure from my personal account to the HMRC but the way I'm reading this thread is that I have to have a business account on Ebay or am I just being dumb?

Thanks in advance!

The two things have become a little mixed up here.

If you are selling as a business you must be registered as self employed and declare your earnings yearly via a tax return. This is a legal requirement.

If you are selling as a business then you should have an ebay business account. This is not technically a legal requirement in its self but is in the T&C's you agree to by having an ebay account. I say 'technically' because if you are selling as a business then you are legally required to display your contact details which is done automatically on an ebay business account, but not on a personal account.

I know you said you won't sell enough to warrant a business account but this is the problem - where does anyone draw the line as to what constitutes enough before they feel they should register a business account or pay taxes or whatever? This is what laws, rules, T&Cs and the like are there for - they define the lines in black and white. I don't think it is really for an individual to decide that they can move those well defined boundaries!

marie-20

lovinituk wrote: »

The two things have become a little mixed up here.

If you are selling as a business you must be registered as self employed and declare your earnings yearly via a tax return. This is a legal requirement.

If you are selling as a business then you should have an ebay business account. This is not technically a legal requirement in its self but is in the T&C's you agree to by having an ebay account. I say 'technically' because if you are selling as a business then you are legally required to display your contact details which is done automatically on an ebay business account, but not on a personal account.

I know you said you won't sell enough to warrant a business account but this is the problem - where does anyone draw the line as to what constitutes enough before they feel they should register a business account or pay taxes or whatever? This is what laws, rules, T&Cs and the like are there for - they define the lines in black and white. I don't think it is really for an individual to decide that they can move those well defined boundaries!

Thanks for your reply - I will only sell around 5 items a week with a profit of around £1.10 each on Ebay at a £3 cost which is why with a £14.99 fee it seems pointless and really eats into my profit (will leave me with around £7 profit!) - the main of my business will be through my website. I know that I will be making pin money but as a full time carer I don't have the time or inclination to be a big seller but after working full time from home and caring for my hubby at the same time I feel that I need to do something to keep my mind ticking over.

I am comfortable with registering myself as self employed and I am ready to submit the forms as soon as I started trading on around 4th July.

I wasn't aware of the T&C's on Ebay so I'm glad I asked

I will look into upgrading my personal account on that basis and have it all ready for next month.

soolin

marie-20 wrote: »

Thanks for your reply - I will only sell around 5 items a week with a profit of around £1.10 each on Ebay at a £3 cost which is why with a £14.99 fee it seems pointless and really eats into my profit (will leave me with around £7 profit!) - the main of my business will be through my website. I know that I will be making pin money but as a full time carer I don't have the time or inclination to be a big seller but after working full time from home and caring for my hubby at the same time I feel that I need to do something to keep my mind ticking over.

I am comfortable with registering myself as self employed and I am ready to submit the forms as soon as I started trading on around 4th July.

I wasn't aware of the T&C's on Ebay so I'm glad I asked

I will look into upgrading my personal account on that basis and have it all ready for next month.

Do not mistake a business account with a shop. I am a powerseller with TRS and do not have a shop at all but I obviously do have an ebay business account.

If you upgrade your current private account to a business your insertion fees will not change at all, except that you don't get the free 99p listings.

Harry_Flashman

Hammyman wrote: »

Neither do I which is why I made a loss on paper in year 1 on a turnover of £17k but put money in the bank every week.

I minimise what Westminster take from my pocket however the difference between you and I is that I do it legally. If you think you're so clever, I can always forward a link to this thread where you've bragged to tax evasion to HMRC fraud office and it is trivial to find out who you are when you have the power to request IP addresses...

Crack on old chap. If threats are the only way you can make an argument work for you, then you perhaps whould be looking at your personal issues.

I'm not a business, I don't have to prove it to you or anyone. Endex.