Some very basic setting up an ebay business questions

chickaroonee

I should know the answer to some of these as I had a very small shop on ebay a few years ago, but it's been a while..

I'm going to register as an ebay business seller, basically selling a few things I can buy at car boots/jumble fairs etc, hopefully for a few pounds more. It's basic stuff and I'm almost certain will make a loss on paper, but I'm keen to do everything properly again. I'm currently ill and a SAHM after being made redundant earlier this year, waiting for an operation in a couple of weeks - hoping to start after this, recovery permitting. Questions are:

- Can some of my costs pre-date my self-employment registration? E.g. I bought a new laptop last week and I'd really like to put this on my costs if at all possible

- I think I have 3 months to register with the HMRC, if I remember correctly. Is that 3 months from buying stock? I bought a couple of things at the weekend.

- Can I use my personal account and turn that into an ebay business account? I've had it for 8 years and it has 1000+ feedback so hopefully looks good to buyers.

- If I can turn my personal account into a business account, do my personal sales from the last year count towards powerseller status?

- What do you do for HMRC for items you cannot get receipts for? Most things I'll buy I won't be able to so don't know what to do about them.

- For DSRs am I right in thinking I don't have to pay buyers' postage for items correctly described?

- Is there a good guide anyone can recommend for calculating reasonable self-employment costs e.g. elec/council tax/car maintenance etc.

I know I have a great deal to read up on, so apologies for trying to short cut some of that here. I'm a bit too ill just now to concentrate properly, but want to try and make sure I get everything in place now so I can start it when I've had surgery and feeling better.

Thanks very much

Oliver14

chickaroonee wrote: »

- I think I have 3 months to register with the HMRC, if I remember correctly. Is that 3 months from buying stock? I bought a couple of things at the weekend.

That is a bit of a grey area. I think the 3 month thing used to be listed years ago. Now all they say is you need to register as soon as possible. So I would register as early as possible. Just because you register doesn't change anything if your not trading yet.

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

chickaroonee

Oliver14 wrote: »

That is a bit of a grey area. I think the 3 month thing used to be listed years ago. Now all they say is you need to register as soon as possible. So I would register as early as possible. Just because you register doesn't change anything if your not trading yet.

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

Thanks for that, I will do it this week in that case. You can tell it's been ages since I did this!

I've thought of another question, does anyone know how this affects tax credits? Obviously I know any income will affect it, but just wondering how they calculate what we will be entitled to, as my income will be an estimate.

payless

laptop... can you show its used exclusively for ebay business?

chickaroonee

payless wrote: »

laptop... can you show its used exclusively for ebay business?

No, does that mean I can't include it? We do have another laptop which I suppose I could use for personal stuff although who doesn't use their work laptop for other things?

hermum

There's a cutting tax board, http://forums.moneysavingexpert.com/forumdisplay.php?f=22
Also a small business board, http://forums.moneysavingexpert.com/forumdisplay.php?f=27
If you're on any benefits the benefits board may be a good one to look at as well.
Business Links run free courses as well as HMRC http://www.businesslink.gov.uk/bdotg/action/home
Good luck, I will hopefully be following you soon, in setting up a business on ebay, not the surgery.

hermum

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/index.htm
This may give some answers re benefits. At some point the Government are (talking) about working on the assumption that anyone self-employed is earning at least the NMW, but I think that's April 12 or 13.

chickaroonee

Thanks hermum, hope you will too! (business not the surgery that is!)

We only get a very small amount of tax credits anyway, I haven't claimed any incapacity benefits as couldn't face it really. I don't think I will make any money at all doing this, but it hopefully will be a good experience for me and I can hopefully continue it if I start paid employment again.

RFW

Much as the advice on here can be good and useful, you will probably be better off calling HMRC, they have new business start-up helplines and even free workshops/courses you can attend. As every tax case can be a bit different they would be best placed to advise you, plus they are nice and friendly these days. Essentially they give you free and helpful advice and will point you in the direction of more help you can get.

Best of luck.

hermum

chickaroonee wrote: »

Thanks hermum, hope you will too! (business not the surgery that is!)

We only get a very small amount of tax credits anyway, I haven't claimed any incapacity benefits as couldn't face it really. I don't think I will make any money at all doing this, but it hopefully will be a good experience for me and I can hopefully continue it if I start paid employment again.

Plenty of people do make money still, if you've spent a while trawling through ebay to see what sells then you should hopefully have a good idea on what to buy.
I wish I had a hobby so that I could use that knowledge, unfortunately I'm just about the most boring person in the world & you can't sell links to MSE, else I'd definitely be on to a winner.

chickaroonee

hermum wrote: »

Plenty of people do make money still, if you've spent a while trawling through ebay to see what sells then you should hopefully have a good idea on what to buy.
I wish I had a hobby so that I could use that knowledge, unfortunately I'm just about the most boring person in the world & you can't sell links to MSE, else I'd definitely be on to a winner.

Oh I'm completely the same! Only hobby is competitions really, and you can't sell them unless you're completely dodgy.

To be honest I've found this by accident - something I've sold a few things of my own for good prices, and had no idea they were sought after. I know I can buy these kind of things fairly cheaply, but it's very hard to estimate a price for them. I think if you buy enough you can make a few pounds, but there are a few other sellers and people no doubt catching on to its potential as I have. Still, it'll keep me out of mischief and hopefully I'll learn some new skills.

I sold books before despite not really knowing a lot about the collectible side of things, I wasn't great at it, but did enjoy it.