Letter From HMRC Re: Ebay Account

Pennywise

listonosz wrote: »

I can only comment on coins as I have some knowledge of them, and it is very easy to spot a fake from the listing maybe on other items this might not work.
You still can't get away from the fact that eBay is unwilling to do anything to stop counterfeit items from being sold on their website.

So you think that market or car boot sale organisers should also "police" all their stallholders and check everything they're selling is bona fide?

listonosz

Pennywise wrote: »

So you think that market or car boot sale organisers should also "police" all their stallholders and check everything they're selling is bona fide?

If information is presented to the organisers of the carboot sale that counterfeit goods are being sold, they should act upon such information.

soolin

I am quite surprised to see a thread like this , perhaps a few years ago, but nowadays with so many small businesses being set up I would have thought people would be clearer about tax implications and registration with HMRC.

I have done some voluntary work, and still do a little and am often asked for basic advice about ebay usually where sellers have fallen foul of HMRC or DWP. I've heard every excuse possible as to why someone doesn't need to register with HMRC from 'I only sold used items and that means I'm not a business' to 'I have no staff of business premises so I can't be a business'. The rules are clear, if you buy to resell or you make things and sell them then you need to sell as a business on ebay and be registered with HMRC . Being registered with HMRC doesn't automatically mean you will pay tax though, that depends on your net income after expenses and what other income you have, but you are obliged to make a declaration so you can be assessed. Failure to register and submit a self assessment tax return can leave a seller liable to fines as well as any tax and NI owing.

I know someone mentioned CGT, and if people are unclear about the difference between when CGT is applicable and when it should be income tax I would suggest that they consult an accountant. In fact, if people are generally unsure about tax implications an accountant is probably not a bad idea if only for a chat.

Lastly, selling as a hobby whilst fun doesn't mean you avoid submitting a self assessment return. I enjoy my selling, I do consider it a hobby as I love going to auctions and sorting out stuff in antique shops and vintage fairs, but it all still has to be declared and my tax and NI paid on my profit.

soolin

It is also worth noting that sometimes ebay force sellers to register with them as a business seller when in fact that seller is truly just selling their own items. That forced registration doesn't automatically mean a seller is a business, so it is possible to be registered as a business seller on ebay and yet have HMRC happy that they are not in fact a business.

listonosz

soolin wrote: »

I am quite surprised to see a thread like this , perhaps a few years ago, but nowadays with so many small businesses being set up I would have thought people would be clearer about tax implications and registration with HMRC.

I have done some voluntary work, and still do a little and am often asked for basic advice about ebay usually where sellers have fallen foul of HMRC or DWP. I've heard every excuse possible as to why someone doesn't need to register with HMRC from 'I only sold used items and that means I'm not a business' to 'I have no staff of business premises so I can't be a business'. The rules are clear, if you buy to resell or you make things and sell them then you need to sell as a business on ebay and be registered with HMRC . Being registered with HMRC doesn't automatically mean you will pay tax though, that depends on your net income after expenses and what other income you have, but you are obliged to make a declaration so you can be assessed. Failure to register and submit a self assessment tax return can leave a seller liable to fines as well as any tax and NI owing.

I know someone mentioned CGT, and if people are unclear about the difference between when CGT is applicable and when it should be income tax I would suggest that they consult an accountant. In fact, if people are generally unsure about tax implications an accountant is probably not a bad idea if only for a chat.

Lastly, selling as a hobby whilst fun doesn't mean you avoid submitting a self assessment return. I enjoy my selling, I do consider it a hobby as I love going to auctions and sorting out stuff in antique shops and vintage fairs, but it all still has to be declared and my tax and NI paid on my profit.

Great post!
I don't think most people who sell on eBay realise the tax implications of selling online and they certainly do not want to unintentionally fall foul of the HMRC.
I myself like most of the population find the tax system both daunting and bewildering.

Flyonthewall

listonosz wrote: »

I can only comment on coins as I have some knowledge of them, and it is very easy to spot a fake from the listing maybe on other items this might not work.
You still can't get away from the fact that eBay is unwilling to do anything to stop counterfeit items from being sold on their website.

Your idea still wouldn't work even if for coins only.

Again, ebay DO have systems in place to deal with them. Again, some people do lie in listings so you don't know they're counterfeit until you have it. Again, ebay is limited as to what they can do.

If they're that obvious then buyers are stupid to buy them anyway. No sales, sellers won't bother. If anyone does buy them it should be easy to prove their fakes so you use the ebay system to get a refund and use feedback to warn others and then buyers are very stupid if they still buy off them when it's obvious and feedback is clearly telling them.

Flyonthewall

listonosz wrote: »

If information is presented to the organisers of the carboot sale that counterfeit goods are being sold, they should act upon such information.

So now you think that experts need to be at thousands of markets, carboots, fairs and so on across the country every week to check out possible counterfeit items?

No organisers will have the expertise to state whether something is counterfeit. You'd need someone who works in the field and has knowledge of the specific item(s) being sold.

Or do you think there is some other way to solve this problem?

SeduLOUs

I guess it's the same as the colleagues at work who do Avon or whatever fad thing is going around and genuinely believe they don't need to declare their additional income because they are 'only selling a bit of makeup'. Or the lads I know who deliver pizzas for cash at the weekends.

Some people are convinced they are right and just won't be told.

listonosz

Flyonthewall wrote: »

Your idea still wouldn't work even if for coins only.

Again, ebay DO have systems in place to deal with them. Again, some people do lie in listings so you don't know they're counterfeit until you have it. Again, ebay is limited as to what they can do.

If they're that obvious then buyers are stupid to buy them anyway. No sales, sellers won't bother. If anyone does buy them it should be easy to prove their fakes so you use the ebay system to get a refund and use feedback to warn others and then buyers are very stupid if they still buy off them when it's obvious and feedback is clearly telling them.

I have had a quick look tonight and found numerous fake Silver bars,some state that they are replicas which mean not only are they fake but also breaking copyright laws.
Quite a few of the sellers selling this rubbish have excellent feedback.

listonosz

Flyonthewall wrote: »

So now you think that experts need to be at thousands of markets, carboots, fairs and so on across the country every week to check out possible counterfeit items?

No organisers will have the expertise to state whether something is counterfeit. You'd need someone who works in the field and has knowledge of the specific item(s) being sold.

Or do you think there is some other way to solve this problem?

Trading standards quite often turn up at carboot sales and seize counterfeit items.
The organisers do not need to have expert knowledge of what is being sold,if they are told that there are counterfeit items for sale they should contact the relevant authorities.
I have now come to the conclusion that you just want to disagree with everything I post.