Multiple Income Streams - selling on Amz and tax

iamrj

Hello

I was talking with my wife this evening about multiple income streams. If we really want to get financially secure then having multiple income streams seems like a good idea. The conversation turns towards Amazon and Ebay and how they make selling very easy. The conversation then turned towards tax on these earnings and I realised I had very little know-how here so I thought I'd ask here in case anyone could give some points or some free, non legally binding advice

If I were to sell on Amazon as a 3P seller then do I need to have a registered company?
If I were to sell printers (can you guess what is next to me as I type this ) would the tax on any profit be at my own personal marginal tax rate if I didnt have a company?
How "professionally" set up do I have to be to start selling things? I'm assuming if I am selling a lot then setting up a company would be worthwhile (?) but for a smaller amount (whatever that is) do I need one?

Sorry for the basic questions - I am a complete novice here!

Thanks
RJ

CKhalvashi

iamrj wrote: »

If I were to sell on Amazon as a 3P seller then do I need to have a registered company?

No, you do need to register as self-employed thoughmif you don’t.

If I were to sell printers (can you guess what is next to me as I type this ) would the tax on any profit be at my own personal marginal tax rate if I didnt have a company?

Yes, with some exceptions. There are trading allowances for those with less than £1k of ‘additional’ income from odd jobs such as this one. That is only £20 a week though, so not a serious income stream.

How "professionally" set up do I have to be to start selling things? I'm assuming if I am selling a lot then setting up a company would be worthwhile (?) but for a smaller amount (whatever that is) do I need one?

There is no need to have a company at all. There are benefits to doing so (the ability to structure tax, limited liability) but also downsides (your accounts are on public record, part of your date of birth is on public record).

It isn’t up to you to decide whether the downsides outweigh the upsides.

Sorry for the basic questions - I am a complete novice here!

No problem, we all have to start somewhere and there is no harm in asking.