eBay income tax

2fat2slow

Dear mrcol1000,

thank you on your replay regarding home expenses and travel expenses.

well usually this is same weekend trips, mainly same routes, excluding major antique fairs, which is up live few time a year.

is it enough just to provide record of mileage or is it needs to be backed up by receipts for petrol, etc. ?

Dear THEONLYWAYISUP,

great answer, well i read somewhere about VAT limits i think yesterday, so i guess might be that i am a little bit out of the date..as it was not my main subject on £81k or £83k now annually if be honest i didn't paid any attention to it, just seen it somewhere.

thank you for your link to the accountants, i hope that in will be able to resolve my all questions, hopefully with your help..you known, how is it everything at very beginning?

people say that i am organized in life, so book keeping is not my issue, my issue is to understand law and where i am with law in my case.

i want to quote this part of your replay:

"If you don't have receipts you need to keep comprehensive notes as to what you bought, where you bought it and what you paid"

when claiming expenses back what i paid for something what was sold, will it be enough as evidence to taxman "comprehensive notes as to what you bought, where you bought it and what you paid" ?

another conflict with law in my case, majority almost everything was purchased as part of my personal collection, for example most of the items been sitting in my house for years, all over my house, this is second hand stuff we are talking about, and in real, i am thinking to sell it, as unwanted items, no matter what price is..This is real situation, i read somewhere that if something been purchased with no intentions to sell in my case, most of my collection, qualifies as "selling as unwanted personal belongings" how it would be a trade? Like i said, i don't have any issues to pay taxes on profits, but if i will be taxed without a chance to claim what i paid..not very good start, this is means that i am starting my business in loss straight away because taxman tool when collecting money not perfect? Let they deal with antiques fairs and car boots sales and issue will be resolved

theonlywayisup

2fat2slow wrote: »

another conflict with law in my case, majority almost everything was purchased as part of my personal collection, for example most of the items been sitting in my house for years, all over my house, this is second hand stuff we are talking about, and in real, i am thinking to sell it, as unwanted items, no matter what price is..This is real situation, i read somewhere that if something been purchased with no intentions to sell in my case, most of my collection, qualifies as "selling as unwanted personal belongings" how it would be a trade? Like i said, i don't have any issues to pay taxes on profits, but if i will be taxed without a chance to claim what i paid..not very good start, this is means that i am starting my business in loss straight away because taxman tool when collecting money not perfect? Let they deal with antiques fairs and car boots sales and issue will be resolved

If you have sold items that were your own and weren't bought in order to sell, then those should be totally separate and do not form part of your business.

You may want to open a second Ebay account. You could then have one for your personal items being sold and another for your business.

To be clear. If you BUY or MAKE an item in order to SELL it, that is a business.

The items you have had for many years that you no longer want and sell, are private and do not need to be declared for income tax purposes, to HMRC.

Pennywise

Your problem is that you've not done any book-keeping. That's a fundamental part of running a business and you'll have great difficulty in preparing your accounts/tax return and satisfying HMRC (in case of enquiry) without book-keeping. ALL businesses need to keep records of their business transactions and HMRC have the power to levy fines for not keeping records. At the very least, you need to start recording your in's and out's from now on, that's your first job. Next job is to start working backwards. You have sales records if you've sold everything via ebay. You have purchase records for everything you've bought via ebay. For anything sold that you don't have proof of purchase, you'll have to use your best judgment/memory as to how much you paid for it, and hence the profit made.