Online sellers offered chance to settle tax bills

HMRC_representative

dangerousuk2 wrote: »

Hopefully HMRC Rep can clarify something for me.

The 32,500 letters that have been sent out;

HMRC must already have info on these sellers, so does the recent report about Ebay and Amazon handing over seller details:

http://www.dailymail.co.uk/news/article-2143972/Cracking-internet-sales-HMRC-hunt-Ebays-biggest-tax-dodgers.html?ito=feeds-newsxml

Does this relate to the individuals that have already been contacted via letter, or is the disclosure by Ebay and Amazon going to lead to more letters going out?

Steve

We are doing all we can to make sure people know about the opportunity to come forward through the e-Markets Disclosure Facility before the deadline closes on 14 June 2012, if this is appropriate to them. We are doing this in lots of ways including advertising, forums, Twitter and the press. The letters are just another way of doing this. Data gathering is continuing so there will be some people who do not get letters at this stage. That does not mean that they can assume the campaign is not for them. Anyone trading on an online auction or marketplace site, who is in any doubt about having paid the right tax, should review their affairs and consider coming forward.

After 14 June we will be looking at the data we have and contacting people where we think we do not have a complete picture of their tax affairs. These letters will be different to the letters customers are receiving now.

For further information on the e-marketplaces campaign go to: http://www.hmrc.gov.uk/campaigns/emarket.htm

HMRC_representative

Harry_Stotle wrote: »

I'm worried now, I've never considered myself a trader just a barmy compulsive collector. I've collected for over 50 years and I've amassed a collection worth over £150,000 . While I was working I had enough spare cash to finance my hobby.
After taking retirement I found my pension wasn't enough to pay all my bills and leave me a reasonable income. So I started to sell some of my collection off, duplicates and the like, No problem there as some of it I'd owned since I was young. I sold about 20 pieces a week as this was all I needed to top up my pension.
But over the years one or two pieces had been damaged or broken so I bought replacement parts etc to make them saleable. I've just looked at the HMRC video and this action makes me a trader! The problem is I have kept absolutely no records at all...what do I do now???

HMRC do not reply to questions relating to individuals personal circumstances, but have answered the general points raised:

If records are incomplete people can make their best estimate of the undisclosed income/gains and use this to make a disclosure. HMRC may ask them to explain how they have worked out any estimates used, so make sure calculations are retained.

If you are selling personal assets that you own or are exchanging them for something else and you make a gain or profit of more than £6000 there is a possibility you may be liable to Capital Gains Tax. It's the gain you make - not the amount of money you receive for the asset that's taxed.
Please see HMRC website for further information on http://www.hmrc.gov.uk/cgt/

For further information on the e-marketplaces campaign go to: http://www.hmrc.gov.uk/campaigns/emarket.htm

mememe1968

Hello, I have been following this thread and wanted to share my experiences for any guidance!


I started making a bit of money from ebay from Oct 2011, after making a spreadsheet and going through paypal/ebay transactions, I got the figure of £545 profit.

So I registered thro the emarket place campaign, got my DRN & PRN number and waited for my P60 from work.
This is where the confusion starts! When I use the calculator on the HMRC site, by putting my ebay profit, pay & tax from my employer, it tells me I owe around £330!!! If i put in no profit from ebay, it gives me I owe £220:o. I cant seem to get the £110 tax I would assume I owe ; 20% of £545.
Also the calculator is only upto 2011???

I rang the emarketplace hotline and got the response of "yeah I see what you mean" but couldnt resolve. She told me to ring the self assessment line who told me they never heard of emarketplace campaign and told me I had to register as sole trader self assessment.

So I did ring the HMRC SA registration line who again, told me she had never heard of the emarketplace campaign and registered me.

My confusion is this; when I do my SA, what happens to the emarket place stuff I got, is that deaprtment expecting me to pay or will the SA stuff be enough.

Has anyone else used the calculator and got it right??

newboy1000

I have joined the campaign and paid up a few years back taxes just to clear my mind and move forward with a clean sheet.
The letter I received said I won't know until after 12th Sept if my disclosure will be accepted.
I have also registered online for Self Assessment and put a starting date when I joined Ebay a few years back.
I hope HMRC do collate the info from different departments so that i only now need to pay for tax year 11/12 on this years SA and not end up with fines for not registering as a sole trader soon enough.
Time will tell!

dangerousuk2

Hi Newboy1000,

Did you get a letter as part of the Campaign? Or was it a voluntary disclosure without getting a letter?
Were you already registered on Ebay as a business seller?
Sorry for the questions I know at least three people who are considering registering themselves, one of which may owe a substantial sum in tax's

Steve

newboy1000

I made a voluntary disclosure using the campaign pdf online form and received a letter of receipt back after a few days.
I am a private Ebay member (at the moment).
If HMRC get access to Ebay/Paypal records in the future they could go back upto 20 years to reclaim tax at higher penalties, fines, interest, National Insurance etc..
That was my concern, so thought, sort it out now under the campaign period as I knew I had some tax to pay.

dangerousuk2

What kind of sales volume are we talking?
I myself have sold just over 250 items in 4 years on eBay (still a private member)

newboy1000

My sales volume has been higher than yours over an 8 year period.
I could have sat back and done nothing but I wanted to use the same Ebay account which has 2500+ 100% feedback to continue as I'm sure it has helped my sales.
This campaign seemed a good opportunity to work from a clean sheet and not to worry about storing up any future tax implications.
Ebay is only a small part of my income but just wanted to settle this tax situation for it to start feeling fun again.

mememe1968

newboy1000 wrote: »

My sales volume has been higher than yours over an 8 year period.
I could have sat back and done nothing but I wanted to use the same Ebay account which has 2500+ 100% feedback to continue as I'm sure it has helped my sales.
This campaign seemed a good opportunity to work from a clean sheet and not to worry about storing up any future tax implications.
Ebay is only a small part of my income but just wanted to settle this tax situation for it to start feeling fun again.

newboy, did you use the online calculator to work out the tax you owe? When I used this, it gave me silly numbers; ref#64. I didnt get any answers from helpline so am at early stages of SA
cheers

newboy1000

I have not yet received all the information I need to access online my SA form and file for tax year 11/12.
I worked out an estimated Ebay profit for each year up to 10/11 then used the online calculator inconjuction with the e-market disclosure form.
It worked out the penalties, interest, NI, owed tax correctly as far as I could determine.