ebay starter tax help needed please!

taxNoob

Hi all
I'm going to start (hopefuly) selling some things on eBay, and will have no more than £1000 profit per year.
I believe under the new tax rules I am allowed this much per year before i have to pay tax, even if i work full time too.

I am bit confused as to whether I need to register myself as a business, and if so...do i need to complete self-assesment forms or tax returns.

00ec25

that would class as self employment, note carefully it is gross income, not profit that is counted for the £1,000.
From what you say it is unlikely you'll meet one of the 4 reasons when you must do a tax return if <£1,000 - see below:

"Self-employed
If you’re starting a new self-employed business and expect your annual gross income to be no more than £1,000, you may not have to register for Self Assessment but can voluntarily if your gross income for 2018 to 2019 will go above £1,000 and you want to be in Self Assessment.

You must register for Self Assessment and declare your income on a tax return when:

1. you’ve made a loss and want to claim relief on a tax return (Help Sheet 227 has more information about losses)
2. you want to pay voluntary Class 2 National Insurance contributions to help qualify for some benefits
3. you want to claim Tax Free Childcare for childcare costs based on your self employment income
4. you want to claim Maternity Allowance, based on your self-employment

You can still use the trading allowance but you’ll need to complete a Self Assessment return using the guidance that helps you fill out the tax return.

If your gross income for a tax year is more than £1,000, you must register for Self Assessment by 5 October in the following tax year. If you’re already registered for Self Assessment, you can use the allowances by deducting them from your gross property or trading income on your tax return. You can’t deduct any other expenses or allowances if you claim the allowances.

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

pearl123

taxNoob wrote: »

Hi all
I'm going to start (hopefuly) selling some things on eBay, and will have no more than £1000 profit per year.
I believe under the new tax rules I am allowed this much per year before i have to pay tax, even if i work full time too.

I am bit confused as to whether I need to register myself as a business, and if so...do i need to complete self-assesment forms or tax returns.

What are you selling? Are you buying to sell?

taxNoob

I have some decent kit to be able to print posters, i will be printing and selling these, just to make a few extra £££.

taxNoob

so its gross income that counts towards the £1000 allowance, that doesnt allow for much profit after costs