Sole trader ebay accounts or tax

magic57

John_Pierpoint wrote: »

None of this is rocket science, it only needs primary school maths skills.
You have to understand that there is a weekly tax called National Insurance for which you will be liable and from which you can probably claim exemption:
Here is the link:
http://www.hmrc.gov.uk/working/intro/class2.htm

One of the purposes of this tax registration is to trigger the issue to you of a notice to complete a tax return for the annual tax called Income Tax.
This annual income tax can be paid using a simple on-line system that does all the calculations for you and on which you can play "what if" games before you decide you have finally got it right and submit you final figures.

It is really simpler that using Ebay, once you have got the idea clear in your head.

All you will have to tell the tax man is how much you were paid. How much you were forced to spend by way of costs and expenses. Take one from the other to get your taxable profit.

Have you kept your receipt and payment paperwork?
Did you hopefully put your Ebay business money through its own account?
The accountancy angle comes into its own by pointing out that you might be able to claim extra expenses and if you need to buy things for your business then you have choices about how to do it to save the most tax.

Just get started, the people on here will help out as you go along.

Thank you very much for your helpful reply. Yes I keep all my receipts and have written everything down. Everyone on here is a great help. :A

John_Pierpoint

One last thought, when you do get the on-line self assessment tax system going, there is no need to pay the tax until next Xmas - January.
BUT when you do the system is likely to want you to get up to date by paying another 6 months on account - based on the theory that you are still make the same level of profits. Then it will demand another 6 months payable in July and correct its guestimates when you submit the next annual tax return.