Disabled Ebay Seller's Tax Credits Stopped - Advice Please!

princessdon

I have also heard that someone was refused because they were not registered as a business with Ebay, didn't have legal return policy under Distance Selling Regs (ie you can item at any time if not suitable) etc.

They said as they didn't display their address and others they were a hobby as they were not "acting" like a business, this was in addition to their small selling volume and very low sale conversion rate.

I wonder if OP falls into this (I know many disabled people are not keen on displaying your name, home address and contact details on the internet), and not everyone is aware of consumer regulations.

Icequeen99

princessdon wrote: »

I have also heard that someone was refused because they were not registered as a business with Ebay, didn't have legal return policy under Distance Selling Regs (ie you can item at any time if not suitable) etc.

They said as they didn't display their address and others they were a hobby as they were not "acting" like a business, this was in addition to their small selling volume and very low sale conversion rate.

I wonder if OP falls into this (I know many disabled people are not keen on displaying your name, home address and contact details on the internet), and not everyone is aware of consumer regulations.

This thread is just getting repetitive, and so if the moderators are not going to close it, i am going to say this once more time.

HMRC may well give reasons like you have quoted above for ending a claim. Same as they have told people because they earn less than NMW it isn't remunerative work but that doesn't mean they are right. The viability of the business is not a requirement in tax credits, neither is making a profit. There is no distinction in tax credit regulations between a hobby and a business. The only requirement is for someone to be in 'qualifying remunerative work'.

The ONLY thing that matters is the legal requirements:

1. That the work is done for payment or in expectation of payment (Fourth condition, regulation 4(1) SI 2002/2005)

2. The number of hours which a person undertakes qualifying remunerative work is, for a self-employed person, 'the number of hours he normally performs for payment or in expectation of payment' (Reg 4(3) WTC Regs SI 2002/2005).

IQ

Herongull

Regulations are subject to interpretation - particulary terms like remunerative work and expectation. This is why issues like hobbies versus real businesses are relevant.

Many posters are making important points that could be relevant to many people claiming WTC.

Perhaps the self proclaimed experts should stop trying to impede discussion?

princessdon

If they are not registered as a business how on earth can someone claim SE Tax Credits?

Surely it is relevant - if someone isn't acting or registered as a business?

50Twuncle

Anubis wrote: »

You should be able to claim ESA. Infact you may have been better doing so, as you can do permitted work of under 16 hours a week and keep your earnings providing it is not more than £95 - if they pass ebay selling as PW.

http://www.direct.gov.uk/en/moneytaxandbenefits/benefitstaxcreditsandothersupport/illorinjured/dg_172014

Whilst I can see what you are getting at - this is incorrect

The rules state that the first £95 of any earnings are unaffected by (and don't reduce the ESA) - Any amount over £95 will reduce the ESA payment at a rate of 50% - ie if you bring in £195 per week - your ESA would be reduced by £50 - so, in theory - you could earn an additional £285 per week before losing the whole of your ESA !!

Arg

Herongull wrote: »

Regulations are subject to interpretation - particulary terms like remunerative work and expectation. This is why issues like hobbies versus real businesses are relevant.

Many posters are making important points that could be relevant to many people claiming WTC.

Perhaps the self proclaimed experts should stop trying to impede discussion?

You mean point out that benefit moaning is for another part of these forums?

princessdon wrote:

If they are not registered as a business how on earth can someone claim SE Tax Credits?

Would the tax collectors or DWP ignore them if they started making lots of money?

Anubis_2

21Twinkle wrote: »

Whilst I can see what you are getting at - this is incorrect

The rules state that the first £95 of any earnings are unaffected by (and don't reduce the ESA) - Any amount over £95 will reduce the ESA payment at a rate of 50% - ie if you bring in £195 per week - your ESA would be reduced by £50 - so, in theory - you could earn an additional £285 per week before losing the whole of your ESA !!

Any reduction in earnings after £95 means they are not keeping all their earnings. Perhaps I should have used the word "all."

Simon7685

Could the OP please give us an update on what has happened with her case?

justjohn

OUT OF INTEREST OP. WHAT WAS THE MAX AMOUNT OF LISTINGS YOU HAD AT ANY ONE TIME?

With no sales, unless your stock level was growing you would have had less work day by day.

Hmrc say you must work X hours with expectation of sales/profit.

Current WTC rules do not state profit or sales levels.

However if you have 50 listing and claim you take 36 hours too keep it running, hmrc will know you are swinging the lead.

I am assuming they have said you are a hobby seller due to the amount of listings you had.