Ebay email upgrade to business account

November2

Just received an email saying I have until Dec 8th to upgrade my account to a business account. I usually only sell on free listing days and because there have been so many lately I've sold a lot more than usual this apparently has caused my account to be flagged by Ebay - so beware of taking advantage of free listings!


So can anyone give me any advice, when I upgrade what should I be aware of, are there hidden charges, what do I need to make sure is 'unticked' in my account, what exactly does it mean to be a business account?


I'm just a person with a laptop in my bedroom trying to make a little extra money which I put away for Birthday/Christmas presents. I fully understand and accept why I have to upgrade (I do sometimes buy items to resell) so any help and advice to keep listings and costs down would be appreciated.

martindow

November2 wrote: »

I'm just a person with a laptop in my bedroom trying to make a little extra money which I put away for Birthday/Christmas presents. I fully understand and accept why I have to upgrade (I do sometimes buy items to resell) so any help and advice to keep listings and costs down would be appreciated.

I can't comment on Ebay's classification of your account, but from HMRC's point of view you are a business. Profits from this are income and subject to income tax.

You may consider the volume of these is trivial, but if your business takes off you will have a problem. It may be best to contact HMRC and come clean sooner rather than later.

soolin

November2 wrote: »

Just received an email saying I have until Dec 8th to upgrade my account to a business account. I usually only sell on free listing days and because there have been so many lately I've sold a lot more than usual this apparently has caused my account to be flagged by Ebay - so beware of taking advantage of free listings!


So can anyone give me any advice, when I upgrade what should I be aware of, are there hidden charges, what do I need to make sure is 'unticked' in my account, what exactly does it mean to be a business account?


I'm just a person with a laptop in my bedroom trying to make a little extra money which I put away for Birthday/Christmas presents. I fully understand and accept why I have to upgrade (I do sometimes buy items to resell) so any help and advice to keep listings and costs down would be appreciated.

I agree with martindow, make sure you are properly registered with HMRC as well as a matter of urgency, you really don't want any nasty surprised further down the line.

As you are a business you will need to comply with business rules, ie have a proper returns policy clearly stated and display your geographic address . You will also no longer be entitled to free private seller listings (and should not have been entitled to them in the past either) . Listing fees though can be cheaper than private listing fees.

You can also open a private account purely for your private unwanted items, now though that eBay have flagged you as being improperly registered I would express caution about what and how much you list as a private seller. Make sure the stuff you list on a private account is truly your own unwanted items, and if there is any doubt, don't list them.

Lastly, lots of us here are merely small sellers trying to make a bit extra, myself included , so you may find that those people who have been properly registered may perhaps be unsympathetic to you having Been caught by eBay. On a side note though I am extremely surprised to hear that you have been caught, I thought eBay had just about given up - and I've actually stopped reporting my competitors who trade under a private account as thought there was no point in doing so.

mrcol1000

When you upgrade to a business account you will need to register for Self Assessment with HMRC. Just go on their website. You will need to keep a record of every penny you spend in connection with buying and selling on Ebay. Not just stock but envelopes, postage, stationary, packaging and obviously you will need to keep a record of sales.

On Ebay you will need to offer returns. You will also have to give your contact address.

Personally I find being a business on Ebay easy. List items accurately and you will have few returns. Fees are now lower than on a personal account. Get Top Seller Status and you will get a discount on fees if you meet the criteria. You also will get better visibility in listings.

Ignore the people on here criticising you for not registering as a business. We all do things that we shouldn't in life. It just the bigger people admit to them.

November2

Thank you for your advice and replies. Having read through some of Ebays help pages I'm not sure if I'll keep using Ebay as it's just so much hassle and trouble. I do not have piles of stock or ever had any idea of running a business, I obtain most of my items from the local car boot and am happy if I make a couple of pound profit, usually I only list on free listing days. As for HMRC I'll check out their website but surely they are only interested in proper businesses selling in large volume.


Can anyone tell me what will happen to my current listings if I upgrade, they were listed on a free listing day, will I now get charged for them? Will I have to update them in any way?


The forced return policy for buyer changes mind is something I am definitely not happy with, how can I sell a cd or dvd knowing there's a chance they'll just ask for a refund after they've copied it! Cd, dvd, video game, book, clothing all seem to be open to abuse.


Another question I need help on is, I have a second account registered with Ebay, this was opened when Ipoints once offered a point incentive to open an account many years ago. I have only used it once, it's basically dormant but I do still receive emails from Ebay now and then urging me to start selling on it. I registered using the same name and address as my main account. Can I still use this to sell used items and take advantage of free listing days, or will it too have to be upgraded?


The one overall impression I have got from reading Ebay community pages is that being a business seller is one of the worst things that can befall an Ebay user!

theonlywayisup

November2 wrote: »

Thank you for your advice and replies. Having read through some of Ebays help pages I'm not sure if I'll keep using Ebay as it's just so much hassle and trouble. I do not have piles of stock or ever had any idea of running a business, I obtain most of my items from the local car boot and am happy if I make a couple of pound profit, usually I only list on free listing days. As for HMRC I'll check out their website but surely they are only interested in proper businesses selling in large volume.

It isn't about piles of stock. It's about buying or making to sell plain and simple.

November2 wrote: »

Can anyone tell me what will happen to my current listings if I upgrade, they were listed on a free listing day, will I now get charged for them? Will I have to update them in any way?

They should remain, but I am not entirely certain.

November2 wrote: »

The forced return policy for buyer changes mind is something I am definitely not happy with, how can I sell a cd or dvd knowing there's a chance they'll just ask for a refund after they've copied it! Cd, dvd, video game, book, clothing all seem to be open to abuse.

You can't but as a business legally you have to give the customer a change of mind return. If you don't, the law will.

November2 wrote: »

Another question I need help on is, I have a second account registered with Ebay, this was opened when Ipoints once offered a point incentive to open an account many years ago. I have only used it once, it's basically dormant but I do still receive emails from Ebay now and then urging me to start selling on it. I registered using the same name and address as my main account. Can I still use this to sell used items and take advantage of free listing days, or will it too have to be upgraded?

You can have more than one Ebay account. If you are using this to sell items you have made or bought in order to resell, you need to change it. Most of us have more than one account. I have 7 or 8. Some used to buy some sell as a private individual, but some used to sell as another business.

November2 wrote: »

The one overall impression I have got from reading Ebay community pages is that being a business seller is one of the worst things that can befall an Ebay user!

I don't agree.

soolin

November2 wrote: »

Thank you for your advice and replies. Having read through some of Ebays help pages I'm not sure if I'll keep using Ebay as it's just so much hassle and trouble. I do not have piles of stock or ever had any idea of running a business, I obtain most of my items from the local car boot and am happy if I make a couple of pound profit, usually I only list on free listing days. As for HMRC I'll check out their website but surely they are only interested in proper businesses selling in large volume.


Can anyone tell me what will happen to my current listings if I upgrade, they were listed on a free listing day, will I now get charged for them? Will I have to update them in any way?


The forced return policy for buyer changes mind is something I am definitely not happy with, how can I sell a cd or dvd knowing there's a chance they'll just ask for a refund after they've copied it! Cd, dvd, video game, book, clothing all seem to be open to abuse.


Another question I need help on is, I have a second account registered with Ebay, this was opened when Ipoints once offered a point incentive to open an account many years ago. I have only used it once, it's basically dormant but I do still receive emails from Ebay now and then urging me to start selling on it. I registered using the same name and address as my main account. Can I still use this to sell used items and take advantage of free listing days, or will it too have to be upgraded?


The one overall impression I have got from reading Ebay community pages is that being a business seller is one of the worst things that can befall an Ebay user!

Unfortunately as far as both ebay and HMRC are concerned no one has the luxury of choosing whether they consider themselves a business or a private seller. The law is quite clear , if you buy or make things to sell then you are a business.

There are many successful businesses that work purely by picking up odds and ends from various places like car boots- you don't need to be a limited company or have staff or premises to be a business. I know of many people that make quite a nice living out of doing it properly, and it is certainly a way of earning a little extra that can be enjoyable as well as profitable.

I am a tiny seller compared to many on here, in fact I consideit a hobby from which the tax man takes a cut and which pays for a good few extra holidays a year.

November2

Hi, can you tell me if I can use the same email and paypal details on my 2nd account that I'm currently using with my other account? I keep coming across conflicting information. I opened the account years ago will this put people off buying from it as I will be a zero rated seller with a very old registration date. Can I advertise or mention my other account on this private account so people will know I'm not a newly registered newbie?





Also how will I know what can and cannot be listed on it, can all 2nd hand used items be listed under private? How on earth can Ebay police private accounts, how do they know if an item is just unwanted or bought to be resold? What about a jumper with a tag still attached? an ornament still in its box, or a sealed cd?



The only thing I can find on Ebay regarding my existing listings is that they have to be updated with return info and contact details. As many would actually come under 'private' should I end them and relist as private or just let them run their course? They were all free listings.



Any advice appreciated.

forgotmyname

If your buying to sell then they are all business sales. Whether new or used.

HMRC do check on ebay and do get reports. All it takes is an unhappy buyer to report you.

If your selling tagged and boxed new items i would see you as a business seller. And any problems with the purchase i will push that in the complaints.

lovinituk

November2 wrote: »

Hi, can you tell me if I can use the same email and paypal details on my 2nd account that I'm currently using with my other account? I keep coming across conflicting information. I opened the account years ago will this put people off buying from it as I will be a zero rated seller with a very old registration date. Can I advertise or mention my other account on this private account so people will know I'm not a newly registered newbie?





Also how will I know what can and cannot be listed on it, can all 2nd hand used items be listed under private? How on earth can Ebay police private accounts, how do they know if an item is just unwanted or bought to be resold? What about a jumper with a tag still attached? an ornament still in its box, or a sealed cd?



The only thing I can find on Ebay regarding my existing listings is that they have to be updated with return info and contact details. As many would actually come under 'private' should I end them and relist as private or just let them run their course? They were all free listings.



Any advice appreciated.

What you are suggesting is trying to get round eBays requirement for to you change to a business account. If you're not careful, eBay may suspend all of your accounts.

Also it doesn't matter if you list stuff on your 'private' account - if you have bought it from a car boot sale to sell on at a profit you are still a 'business' in the eyes of HMRC and still need to register as self employed.

eBay don't police sellers on behalf of HMRC. The only reason eBay want you to change to a business account is primarily so you don't get your free listings every month. They want to make more money from you.

Forget about the link between an eBay 'business' account and being a business in the eyes of HMRC. They are 2 separate issues.

soolin

Each eBay account will need a different email address and selling accounts used to need a different card registered as well (not sure if that has changed). One PayPal account though can be linked to 8 email addresses.

As for your other questions, now that you have come to ebay's attention I would express extreme caution with what you list on a private account. If in doubt, don't list , as has been said above you risk losing all your accounts if eBay think yu are trying to get round the business upgrade.