Advice and Info needed

Martin_B_3

Sorry if this has already been posted and talked about.

Im currently working full time, and looking at starting a "part-time" business, selling on ebay, so my extra income would differ each month from £100 to £500 sales, profit, say 15-20%, maybe more, maybe less depending on demand.

Firstly, I earn over £20,000 a year, so would I have to declare this extra income and pay tax, VAT?

If so, how much extra do I have to earn before paying tax?

Secondly, would this be better by myself filling in a tax form each month, or yearly on this extra income?

Thanks for your help on this.

Flyonthewall

Regardless of whether you have other income, you must register as self employed and declare any income from the business. The amount is unimportant. If you have a business whether you make £0.01 or £1 million you must be register and declare it. Even if you break even or lose money you still need to be registered.

You need to look into VAT if you're selling a lot, I believe.

Keep a record of all that you buy and sell and the prices. You'll need to do your taxes each year.

Remember with ebay to factor in fees and any postage costs.

Martin_B_3

Thanks for your reply.

I just wasnt sure as i'm looking to bolster my income. I know I need to be earning a certain amount a year to start paying VAT, but wasn't sure if I did over £10k of sales a year then I would need to pay VAT, and below this I don't.

Kayalana99

Hiya Martin,

If you are serious about this their is nothing google can't answer for you - don't take this the wrong way, I say this because their is a lot of little things you need to know..so set yourself an hour or two..start googling book keeping and registering as self employed. Do a bit of research into it, and then if your really stuck come back here.

As for VAT you only pay this if you earn over 81k , now I'm sure if that would include your wage earnings but I don't believe it does..

asajj

Hi
Number of threads on the forums may help you

https://forums.moneysavingexpert.com/discussion/4896060

http://forums.moneysavingexpert.com/search.php?searchid=160377371

Sugarplum634

You need to be VAT registered if you turn over more than 75k a year. I think. You need to get proper advice.

comberspud

You can run your ebay side trade along side your full time work.

You will need to register with the HMRC and do tax returns each year

You only need to register for VAT if your ebay shop is hitting over £81k in takings. (Not profit) Total sales!

Although I wouldnt get too close as an increase in stock from a previous year could take you into the VAT threshold.

Might be best to get an accountant. For an ebay shop side trade they should cost more than £300 a year. Im sure an accountant friend of a friend would do it on the side simply just keep all receipts and keep a few records of your business income, expenses and profits.

So to repeat, because you are already over your personal allowance which is just over £10k profit a year you should be paying tax immediately on the ebay business.

I would try and hold back from registering for VAT as long as you can. If you need any advice with your ebay shop and costs feel free to pm me