Employed and self employed - taxes

Penguin666

Hi all,

I’m just about to start a new job working full-time with the NHS, but in the last couple of months I decided to buy and sell some goods on eBay, which I’ve made a few hundred. I think I’ve complicated  Things for myself as I’m not registered as self employed or anything like that and want to declare it. Do I need to register as a sole trader? I want to set up a couple of eBay shops selling different items so not sure what I should do next in terms of process. I also have bought lots of bits towards the business but no real receipts and complicated things by using my personal account.

Any advise would be much appreciated.

Many thanks,

Andy

Dazed_and_C0nfused

Did your sales exceed £1,000?

If not are you definitely continuing to trade?

Unless you are going to need to be VAT registered there is no need to register with HMRC until next October.  Although it would be better to register well before then if you need to.

Penguin666

Hi, thank you. Yes I think it’s going to be around £1600 so do I need to declare anytime soon? Do I need to register as a sole trader now? I want to continue to trade part time. 

Thank you 

bris

You need to do a self assessment so yes you need to register.

martindow

Penguin666 said:

...  but no real receipts ...

You will need receipts in some form otherwise you will pay more tax than needed.  It is important to keep all of your receipts and note down all eligible expenses (mileage, postage, etc).  These are needed to justify your expenses you will be setting off against your sales to calculate your profit which will be taxed.  Inspections from HMRC are not very common but reportedly can be brutal if you have poor records.

HMRC have some good resources on their web site

https://www.gov.uk/guidance/help-and-support-if-youre-self-employed

It is good to get things set up correctly from the start.  It will be well worth speaking to an accountant to be sure you are on the right track.  Many offer free initial half hours which can be useful.