Online sellers offered chance to settle tax bills

mrs_lds

O even if you sell your own tut you have to declare everything now.

soolin

mrs_lds wrote: »

O even if you sell your own tut you have to declare everything now.

No, we are talking 'trading' not selling your own goods. Selling your own items only gives a tax liability if you are very high end and start to run into CGT.

lovinituk

mrs_lds wrote: »

Can you sell online like gum tree or does same apply

It doesn't matter where you sell - if you are selling as a business then you pay your dues.

HMRC_representative

If you are going to make a disclosure under the HM Revenue & Customs (HMRC) e-marketplaces campaign, you have until 14 September to send us details of your disclosure and pay what you owe.

The e-Markets Disclosure Facility is a time limited opportunity for online sellers with tax to pay to put their affairs in order. The chance to register to take part in the campaign, and make a disclosure on the best possible terms, ended on 14 June. Since 14 June HMRC has increased the number of investigations into online sellers, and this will continue. Penalties of up to 100 per cent of the tax owed, or even a criminal investigation, could follow.

The campaign is aimed at people using online marketplaces to buy and sell goods as a trade or a business and who are not up to date with their taxes. People who sell only a few personal items and who are not traders are unlikely to be liable to pay tax on what they sell, and are not being targeted by this campaign.

How do I know if I’m trading?

People who are unsure whether their e-marketplace activity could be seen as trading can visit: http://www.hmrc.gov.uk/campaigns/emarket.htm and watch a supporting YouTube video for advice: http://www.youtube.com/watch?v=uptdjVD2LgI

How do I make my disclosure?

To make a disclosure under the e-Markets Disclosure Facility, online sellers can use the form on HMRC’s website at: http://www.hmrc.gov.uk/campaigns/emarket.htm

People who make a full disclosure:

• will be offered a simple and straightforward way to put their tax affairs right
• may not be charged a penalty at all, with most receiving a penalty of no more than 10 per cent of the tax they owe.

What if I missed the 14th June Deadline?

Online traders who missed the 14 June deadline are still advised to come forward, as the penalty will still be lower than it would be if HMRC comes to you first. Phone HMRC on 0845 604 2944 for help on making a late disclosure.

What do I do if I can’t afford to pay all at once?

You must make your payment to HMRC at the same time as you send in your disclosure. If you need to talk to HMRC about your ability to pay in full you must do that at an early stage to make sure you have an agreed payment arrangement in place before any disclosure and payment deadline. Phone HMRC on 0845 601 2944, where a dedicated team is available to give to information and advice.

Your feedback

We’re keen to have your questions and feedback on the campaign. We will read responses posted in this thread; however, we cannot promise to reply to every post.

ulsterbeef

I am wondering if anyone has asked a similar question but here goes anyway. First of, I do think everybody should pay tax and I cant stand these celebs who complain they are being taxed with their overseas bank account. Anyway, from 12-13 you can earn £8,105 tax free.... so can I just earn £8,105 and stop selling? I should pay national insurance and all that but this is a tax forum.

soolin

ulsterbeef wrote: »

I am wondering if anyone has asked a similar question but here goes anyway. First of, I do think everybody should pay tax and I cant stand these celebs who complain they are being taxed with their overseas bank account. Anyway, from 12-13 you can earn £8,105 tax free.... so can I just earn £8,105 and stop selling? I should pay national insurance and all that but this is a tax forum.

Your pesonal allowances need to cover all your income, so if selling is your only income and you have no other jobs, savings, investments, taxable benefits etc then if you have a net income less than your allowances you pay no tax.

However you would still need to register with HMRC and submit a self assessment tax form each year with your accounts.

lovinituk

As Soolin says, do you earn any other money? Wages, benefits?