Extra income

sjh101

I want to set up a business account selling items on ebay. I was just wondering if someone on here could clear a few things up for me before I go ahead with things. 

I am currently employed part time 33 hours a week on a salary. Obviously this means I don't have to worry about declaring tax as it is automatically deducted from wage. So if I were to be successful selling my items, where would I stand in terms of declaring tax? Am I right in thinking that I don't have to declare anything below £1000 per annum? Also, if above that how does it work in relation to my normal salary earnings. Does this get taken into consideration? 

Thanks in advance. 

Dazed_and_C0nfused

If you need to register as self employed then you will have to complete Self Assessment returns.

You declare all of your taxable income on the return and the tax* due is calculated.  Any tax already deducted, such as that from your employments, is deducted leaving you with what you need to pay to HMRC

*depending on the amounts involved and your personal situation you may also have some National Insurance (Class 2 & 4), student loan and High Income Child Benefit Charge to pay as well.

Jeremy535897

sjh101 said:

I want to set up a business account selling items on ebay. I was just wondering if someone on here could clear a few things up for me before I go ahead with things. 

I am currently employed part time 33 hours a week on a salary. Obviously this means I don't have to worry about declaring tax as it is automatically deducted from wage. So if I were to be successful selling my items, where would I stand in terms of declaring tax? Am I right in thinking that I don't have to declare anything below £1000 per annum? Also, if above that how does it work in relation to my normal salary earnings. Does this get taken into consideration? 

Thanks in advance. 

If your total receipts from sales are £1,000 or less in a tax year, they don't need reporting. The £1,000 is sales, not profit.

sjh101

OK. Thanks for the advice so far......I'm still a little confused regards it all though. 
So in my situation, like I say I'm currently employed and earn approx 21,000 gross so around 18,000 net. I obviously already pay tax on this through my salary. 
My vision regarding earning a bit extra through ebay,  I'm thinking prob won't be a earning and selling every month. So not really treating as an extra steady income. Maybe one month I'll buy and sell and then the next maybe not. How would that work with regards tax?   I will be earning some extra through making and selling and then buying things to sell on......so fully aware I need to pay tax and go as a registered business on ebay, even it it will be sporadically. 

So I'm still really confused how I will be taxed when taking into account my salary. At first I just thought because I already pay tax on my salary this gets left alone, and I would only need to declare tax on the sales I make through ebay. Now I'm not sure. 

Also, I get conflicting information regarding tax and total sales. Some people say you only have to declare tax on the profit you make and give a detailed breakdown of a hypothetical example, where others say you have to pay tax on whatever you receive, irrespective of over head costs. 

I'm pretty ignorant with this sort of thing so have absolutely no idea. Apologies for that. 

Does it have a fools guide to paying tax online anywhere that would help me with my sort of scenario? 

Thanks 

[Deleted User]

If you are required to self-assess you declare all income AND tax deducted. The calculation will work out the tax due on all income and give credit for the tax that you have paid e.g. on your employment. If you have paid the correct tax at your employment on earnings of 21000, obviously any further liability will be entirely based on your self-employed earnings.

Jeremy535897

This guide is comprehensive:
https://www.litrg.org.uk/tax-guides/self-employment

sjh101

[Deleted User] said:

If you are required to self-assess you declare all income AND tax deducted. The calculation will work out the tax due on all income and give credit for the tax that you have paid e.g. on your employment. If you have paid the correct tax at your employment on earnings of 21000, obviously any further liability will be entirely based on your self-employed earnings.

OK. How would I know if I was required to self assess. What does this mean ? 

Dazed_and_C0nfused

HMRC would send you a notice saying you needed to file a Self Assessment return.

This would be necessary if you register as self employed.