Self Assessment - Small Ebay business from home?

shanks84

Hi. I hope someone can help me. I started running my ebay business from home on 01/07/11. My profit form then up until 31/12/11 was just over £4,000. That's including all of my costs - materials, postage, ebay/paypal fee's etc. Do I need to fill out a self assessment before the end of January for this? I know - before anyone says, I've left it far, far too late - I twigged when I heard the advert on the radio today I was on incapacity benefits up until 01/07/11

Do I include utilities/rent/petrol costs in my expenses? If so, I haven't taken those into account. I have received my NI contributions charge (£35) which needed to be paid before 31/01/12. However, looking at the self assessment website, I need a Unique Taxpayer Reference, which I don't have

Can anyone help me? I'm in a bit of a hole with this, and know I should have looked into it much earlier!

Thanks in advance

InsertWittyName

No, you'll need to fill one in next year

I'd suggest doing some research now online (there's bound to be lots of guides for eBay business stuff) and putting aside the tax & NI you will have to pay.

shanks84

So as it stands, I don't have to do anything? Will I have to do anything in April?

I'll take this as a wake up call lol

Mouse1812

To clarify. The tax returns due in by 31 January 2012 are those for the year ended 5 April 2011. As your ebay business started after this date you do not need to worry about this. You are correct however to realise that ebay profits can be taxable.

You have plenty of time to sort this out. If by 5 April 2012 your profits (and other taxable income) exceed £7,475 you must notify HMRC that you need to complete a tax return, I think you need to do this before 31 October 2012?

Yes you can include costs, but only those costs which you incur in running the business, not those which you would have anyway. Some use of home is allowable, to cover the time you are using your home to actually run the business. Any travel to post office @45p a mile if by car also OK.

If your total income is however less than £7,475 then you will have no tax liability and there is no obligation to tell HMRC anything. Just keep your records to show your profits are below the tax limits in case anyone asks.

skater_kat

you will still need to register though and declare all self emplpyed earnings? even if no tax will be due - surely HMRC calculate that, not the Self employed person? you would have to submit a return which states the income and expenditure for the tax year, and if you are below the threshold you would recieve a bill for £0 / no tax to pay.

the person could be earning other income in the tax year which may have put them over the threshold?

also, people need to register in order to pay the NI stamps...

if it was me and i was earning below thresholds I should still register and apply for small earnings exemptions.

mildred1978

Did you register as self employed with HMRC on 1/7/11? If you didn't within 3 months you'll be liable for a £100 fine.