eBay and HMRC

PaddyC1234

Hello folks, as new eBay seller, I have collaborated with a guy who has a lot of "random stuff" to move from his garage. Basically, he has offered me 40% of any sales we make if I deal with the workload of eBay photos, descriptions, and deliveries etc....fair enough, however, as I will be taking care of the transactions also, I will have to pay him somehow his 60% via a bank transfer......This leads to a question about whether this is the correct thing to do in this situation or would someone start to "notice" this regular transfer from my account to his??

ballisticbrian

Have you worked out what your fees are and who will be liable for customer refunds and returns? It's not going to leave much profit in it.

soolin

PaddyC1234 said:

Hello folks, as new eBay seller, I have collaborated with a guy who has a lot of "random stuff" to move from his garage. Basically, he has offered me 40% of any sales we make if I deal with the workload of eBay photos, descriptions, and deliveries etc....fair enough, however, as I will be taking care of the transactions also, I will have to pay him somehow his 60% via a bank transfer......This leads to a question about whether this is the correct thing to do in this situation or would someone start to "notice" this regular transfer from my account to his??

Run a mile , you’ve been had. You take all the risks, spend all the time and send him money via a means that you cannot get refunded, you meanwhile end up paying for any items not delivered or returned due to change of mind etc. 

I know this is common in the US but they tend to want 60 or 70% of the net profit if they are expected to take all the risks . 

If you’ve done your research and you think there is money in the stuff he has, give him a price for the lot , one off, and sell it all yourself and take control. 

RFW

PaddyC1234 said:

Hello folks, as new eBay seller, I have collaborated with a guy who has a lot of "random stuff" to move from his garage. Basically, he has offered me 40% of any sales we make if I deal with the workload of eBay photos, descriptions, and deliveries etc....fair enough, however, as I will be taking care of the transactions also, I will have to pay him somehow his 60% via a bank transfer......This leads to a question about whether this is the correct thing to do in this situation or would someone start to "notice" this regular transfer from my account to his??

40% of gross or net? IE 40% of what you get in your bank account after paying fees and postage and packing, or 40% of sales. There's a big difference. I wouldn't really do either, the latter you're likely to lose money.
Your business is the profit, what you declare to HMRC is what you make. I doubt you'd be making anything for them to care but you should be declaring it. What the other person declares is their problem.
As others have pointed out, do you know what will happen if you get a return or a claim for a lost item, a month after you've paid your friend?