Using private ebay as a business.

extrafisher

So im registered to pay tax I have a private and business ebay account going through same paypal account.

My question is can i sell business items on the private account to benefit from offers. Ebay probably wont like it but as long as i report earnings to hmrc im not dodging tax.

If that is ok how many single items can i sell on private account a year before ebay would force me to upgrade

ballisticbrian

If that is ok how many single items can i sell on private account a year before ebay would force me to upgrade

Our private account wasn't even being used for business and got changed by eBay to a business account (and we already had one of those).


This used to happen because of x many sales in a certain category, but on further investigation, the tax office had simply written to eBay with 1000's of accounts demanding they be changed to business, for no apparent reason.

19lottie82

extrafisher wrote: »

So im registered to pay tax I have a private and business ebay account going through same paypal account.

My question is can i sell business items on the private account to benefit from offers. Ebay probably wont like it but as long as i report earnings to hmrc im not dodging tax.

If that is ok how many single items can i sell on private account a year before ebay would force me to upgrade

I don't think there is a set number. There will be be some kind of formula and when your account flashes up, then eBay will suggest or enforce the change to a business account.

19lottie82

ballisticbrian wrote: »

on further investigation, the tax office had simply written to eBay with 1000's of accounts demanding they be changed to business, for no apparent reason.

How do you know this for sure BB? Not questioning it, just curious.

I_have_spoken

I have a private and business ebay account going through same paypal account.

Your private account is likely already on a 'watch list' for just such shenanigans.

Anyway, fees on the business account are tax-deductible so offers aren't so beneficial.

extrafisher

I_have_spoken wrote: »

Your private account is likely already on a 'watch list' for just such shenanigans.

Anyway, fees on the business account are tax-deductible so offers aren't so beneficial.

So would fees on a private account

soolin

extrafisher wrote: »

So im registered to pay tax I have a private and business ebay account going through same paypal account.

My question is can i sell business items on the private account to benefit from offers. Ebay probably wont like it but as long as i report earnings to hmrc im not dodging tax.

If that is ok how many single items can i sell on private account a year before ebay would force me to upgrade

Technically you should be declaring yourself as a business to potential buyers so that they benefit from all the buying protection requirements that UK law allows them. So selling as a business but not telling your buyers that would be an issue.

ballisticbrian

How do you know this for sure BB? Not questioning it, just curious.

We phoned eBay and asked them to change it back to personal and they said they couldn't because they had acted on instructions from the tax office but couldn't comment on the actual criteria used.

extrafisher

soolin wrote: »

Technically you should be declaring yourself as a business to potential buyers so that they benefit from all the buying protection requirements that UK law allows them. So selling as a business but not telling your buyers that would be an issue.

Thats interesting thanks, is there anywhere i can read about that? The private account has all the protections that the business does i think. return for change of mind, seller pays return postage if sellers fault, refund if item lost. I dont believe buyer is entitled to anything else

19lottie82

extrafisher wrote: »

The private account has all the protections that the business does i think. return for change of mind, seller pays return postage if sellers fault, refund if item lost. I dont believe buyer is entitled to anything else

Private sellers don not have to accept non fault returns. Business sellers do.

soolin

extrafisher wrote: »

Thats interesting thanks, is there anywhere i can read about that? The private account has all the protections that the business does i think. return for change of mind, seller pays return postage if sellers fault, refund if item lost. I dont believe buyer is entitled to anything else

It's mainly cars that seem to attract the attention of trading standards like here:

http://www.tradingstandardswales.org.uk/prosecutions/2016MarTorfaen.cfm

But I think this is the legislation you need to check about falsely claiming not to be a business:

Consumer Protection from Unfair Trading Regulations 2008.
http://www.which.co.uk/consumer-rights/regulation/consumer-protection-from-unfair-trading-regulations-2008

It is also unlawful for traders to mislead consumers about their legal rights or for a trader to give false or deceptive information about his business, status or qualifications.!