FAO SC and others who don't declare eBay income to tax office

Hoddie_2

I received a communication from HMRC today, advising that they've successfully completed a trial of a new piece of software. They set loose a robot seeking web pages where UK citizens advertised holiday lettings for rent where the owners hadn't previously declared 'income from property'. The results were passed to the compliance department for review, the expected net yield is believed to be within the six-figure region.

Their next stated target was the 'group who trade on eBay and other auction sites who don't declare their profits'. They can use the user contact information provided by the auction sites to cross reference the details held by HMRC. The manpower involved in the initial sweep is nil, as the work is carried out by an automated piece of software that has been created in conjunction with the Dutch tax authorities.

soolin

This was mentioned in the Mail on Sunday as well, it is apparently a straight forward BOT that sits online and does the work that the old investigators used to do.

One more reason to worry about your job if you happen to work for HMRC. It used to be a good job if you got into a tax office, but now it is getting to be just number crunching what with dozens of 'report' lines and now automated bots catching the fraudsters.

Snooze_Control

Hoddie wrote:

I received a communication from HMRC today, advising that they've successfully completed a trial of a new piece of software. They set loose a robot seeking web pages where UK citizens advertised holiday lettings for rent where the owners hadn't previously declared 'income from property'. The results were passed to the compliance department for review, the expected net yield is believed to be within the six-figure region.

Their next stated target was the 'group who trade on eBay and other auction sites who don't declare their profits'. They can use the user contact information provided by the auction sites to cross reference the details held by HMRC. The manpower involved in the initial sweep is nil, as the work is carried out by an automated piece of software that has been created in conjunction with the Dutch tax authorities.

:rotfl: :rotfl: :rotfl:

Now where did I put my scare-mongering icon......

SC

nightswimmer

Hoddie wrote:

Their next stated target was the 'group who trade on eBay and other auction sites who don't declare their profits'. They can use the user contact information provided by the auction sites to cross reference the details held by HMRC.

Just curious, but how does this work with the data protection act? Are the HMRC exempt from it?

Avoriaz

I suspect HMRC are exempt from most of the restrictions affecting everyone else.

They are entitled to get information from banks and building societies, employers etc and are presumably empowered to get information from ebay and other auction sites.

Did anyone notice the slight tremble in SC’s typing above?

zappahey

Avoriaz wrote:

I suspect HMRC are exempt from most of the restrictions affecting everyone else.

No, they are not. All of their activities must be within the bounds of the law.

Amazombie

zappahey wrote:

No, they are not. All of their activities must be within the bounds of the law.

http://www.accountancyage.com/accountancyage/news/2174065/four-banks-offshore-disclosures

rose_sparky

I'm sorry to digress a little but as this is the current thread running regarding tax etc please bear with me.

I have to admit that I'm getting worried regarding all this tax man stuff and would like help with a couple of queries regarding this.

I thought I would start some sort of paperwork/excel exercise on my sales and outgoings etc. However, over the years I've been registered on ebay I've also sold many things for family and friends, including expensive items. Would I be liable for the tax on those even though they weren't mine? What about the items I've sold for my husband?

Sorry to sound a numpty but if doing a favour and selling for others is going to make me liable to tax then I may have to say no.

JohalaReewi

If you are selling stuff on ebay for others, you are effectively offering a service and could be liable for tax on any profit you make on the sales.

Items you have sold for your husband could be treated as you selling your own items (your husband can freely transfer the items to you so they become yours which you then sell).

kriss_boy

Pitty theres virtually no way of them proving some sellers arent just selling their personal belonging though.

my_gorgeous_ellie-belle

Ok, im prob sounding very thick here but i have a massive habbit of buying thiings for myself and then never wearing or using them.

I do also sell used bits n bobs like baby stuff and just my junk that others might have a use for so i know the used bits wont be liable for tax.

Im just worried because of the heaps of stuff that still has tags on that i list, even though it was origionally bought for me or my family. What would you say my situation is here?

I do also have stock from my Ann Summers rep days that was all fully paid for by me but all has labels and pricetags intact.

Do you think i am just being silly here or do i really need to be concerned?

Thank you!!!!!!

PS..Im not registered as a business though as i only list about 10-15 items absdolute max per month.