Advice Needed. Self employed and not paid tax for 3 years

dancingfairy

I would consider consulting an accountant to get you on the straight and narrow. They will be used to deali g with hmrc so can help in that respect and can make sure your claiming the right expenses so you don't have to pay more tax than you have to. Good luck
Df

ryan871

hi,
is selling virtual goods also taxable? i used to sell (levelling services) on ebay prior to 2013 but not sure how much profit.
Also i can't seem to view my bank statements before 2013 even when my bank was opened in 2007.

This could be trickier than i expected to resolve.
What is the deal with ebay selling? personal items require tax to be paid aswell?

thanks for any help

ryan871

bump for the above

ASingleParent

As far as I'm aware selling off personal items on ebay, i.e having a clear out of old clothes etc doesn't have to be declared and isn't liable for tax. Selling services and buying items for reselling on ebay (or elsewhere)is taxable and has to be declared, even if no profit is made.

theoretica

ryan871 wrote: »

hi,
is selling virtual goods also taxable? i used to sell (levelling services) on ebay prior to 2013 but not sure how much profit.

Almost certainly yes as you talk about 'profit'. HMRC don't care how you make your income - you need to pay tax on it.

ryan871

hi, if i see an accountant is there any chance they could report me to HMRC before i get the chance to contact them? and would an online accountant be sufficient or should i meet one locally? any recommendations?

Also i may have recieved some income before 2013 from some stuff i sold on ebay but i cant get my old statements online. If i went into bank could they send me old copies?

I started selling on ebay around 2011, so would there be big fines for anything that long ago?

thanks again

ASingleParent

I can't see why an accountant would report you, you would be hiring them to sort your finances out, it will be left to you to contact HMRC, they will only be interested in your profit, your bank would have all your statements re ebay and there should be no charge for getting them sent to you.


Best to just bite the bullet and register for self assessment and also pick up the phone and talk to someone in HMRC and just be honest and tell what you have told on here. It'll be a weight off your shoulders once you get everything in order and it probably won't be half as bad as you are worrying about.

Takingmytime

Ask around and see if you can get a few recommendations for good accountants in your local area and meet with them. I believe you would be far happier being able to discuss any ongoing concerns in person rather than trying to communicate with an accountant solely virtually.
The accountant won't report you unless you are trying to get away with something illegal. Your accountant will work for your interests first, not the HMRC's and a good one will more than make their fee worth it.

Take positive action and make a move: If you are too worried to contact HMRC right now (which you appear to be), then make a list of accountants and set up some appointments. This inertia is causing you to panic, it will reduce your stress significantly to just act.

nkkingston

Go into the bank and ask for statements. They may charge for them, but they should have the records (if they don't, something's gone very wrong there!). I'm surprised you can't get them online, actually - I can go through mine online for the better part of a decade.

Registering for self assessment can be a bit of a faff because of the levels of security (being sent certain codes by post etc) so it's worth starting the process now. It's fairly straightforward once you're in. Every year I think it's going to take me hours and hours, but the longest part of the process is waiting for my ancient computer to boot up!

lauzt1987

OP I would definitely get yourself an accountant. If your income was paid in a foreign currency then it may have to be converted at average exchange rates etc. I would gather up all your invoices and receipts as well as your P60s for 12/13 onwards and let the accountant sort it out for you. Assuming they apply for the relevant mandate, they should also be able to contact HMRC on your behalf. You are likely to incur penalties but these should be reduced to the minimum if you come forward.