Setting up an ebay business from home whilst working full time!?

StriveForMillions

Hi there,

I'm not sure if this is the right area, and I apologize for any missing information you might need but here we go.

I'm currently working full time, 5 days a week, and I'm looking at running an ebay business on top for at least one year, and up to three.
The business is a proven concept, and there are no issues with it being self sustaining whilst not being too time consuming (which obviously a lot of people may think due to working full time).

I have no issues with the ebay side, setting up a shop listing selling etc. It's more laws/tax etc

I have a lot of queries/questions, but I'll try keep it to the main ones and develop later on in the thread if needed. Please presume that other than ebay knowledge, I'm a complete amateur which knows nothing as that'll make it a lot easier for me.

• Would I need to go "Self Employed" whilst working for them? Or can I work on top?
• What sort of limits of earnings will I be on? I'm currently on £6.50 an hour, averaging 44 paid hours a week. (£286 before tax)
• What will the tax brackets be? and will there by any difference on tax charges between being employed and working as a business?
• How would I go registering to the government, tax department etc as a business?
• My home would obviously be the registered address, would this bring on council tax implications or would it require planning permission, or anything along those lines?

Those are the most important ones I can think of, I have searched online but the answers differ or aren't related at all. I am very fine with ebay side of things. However (as you can probably tell) I'm a complete amateur with tax, business etc as I've never had to deal with anything like it myself.. this is a first.

I'm keen to learn, and just looking for clear advice/information. Thankyou in advance to anyone who helps.

jackomdj

You can have employed and self employed income.
As you already pay tax, everything you earn will be taxable, although it will be your net profit that is taxable not the income. You may even make a taxable loss, which can get offset against your employed income.
Go onto the gov website re notification, NI (or NI exemption) http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm should answer a lot.
Shouldn't have any council tax implications (but not an expert so not 100% sure), is it your house as some rental properties have a clause in the contract. Your household insurance may need checking.
You can sometimes get a free basic bookkeeping course for keeping your records, worth going on to see which expenses you can offset against your income, ie en element of your broadband etc

StriveForMillions

jackomdj wrote: »

You can have employed and self employed income.

That's great. (obviously saves hassle with work) I'll take a look at the website now!

jackomdj wrote: »

You can have employed and self employed income.
As you already pay tax, everything you earn will be taxable, although it will be your net profit that is taxable not the income. You may even make a taxable loss, which can get offset against your employed income.

That's also good, I was was thinking I would be getting taxed on the full amount earned, but just profit is good news.
Will the rates be on that website and do they differ % wise on amount of income?

jackomdj wrote: »

Shouldn't have any council tax implications (but not an expert so not 100% sure), is it your house as some rental properties have a clause in the contract. Your household insurance may need checking.

The house is in our ownership, not under rent which makes things easier. One of the biggest thing I'm concerned about is the council tax getting turned into a business rate which a few people have mentioned.

jackomdj wrote: »

You can sometimes get a free basic bookkeeping course for keeping your records, worth going on to see which expenses you can offset against your income, ie en element of your broadband etc

I'll take a look online now, are these government ran or funded? Did look at the princes trust, but because I'm employed they won't help out.

Thanks for the help so far, especially at this time in the evening.:beer:

StriveForMillions

Looking on their website, I have tax free income over up to £10000 which is already exceeded. I'm presuming I'll be falling into this bracket to start off with, so that's one question out the way
Basic rate: 20%
£0 - £32,010
£0 - £31,865