Ebay seller , need to disclose profit

soolin

As the OP talked about ‘trading’ so many times in their post it never really occurred to me that they were just selling unwanted items. If they were a private seller and can demonstrate the items were unwanted personal items then all they would need to do in the first instance is to reply saying they have no additional business income to declare. 

Obviously this will result in more questions and some requirements to prove their statement, but no need for any worry about accounts , as long as they can demonstrate their statement was correct. 

tightauldgit

soolin said:

As the OP talked about ‘trading’ so many times in their post it never really occurred to me that they were just selling unwanted items. If they were a private seller and can demonstrate the items were unwanted personal items then all they would need to do in the first instance is to reply saying they have no additional business income to declare. 

Obviously this will result in more questions and some requirements to prove their statement, but no need for any worry about accounts , as long as they can demonstrate their statement was correct. 

I wouldn't suggest anyone to try it of course, and I'm not quite sure which way the burden of proof lies in law but I suspect it would be very hard for HMRC to prove that a private individual was actual trading rather than just selling stuff they own unless they incriminated themselves.

I suppose there's probably some kind of materiality test as well where they assume that you didn't make £18k profit in a year selling your unwanted nik-naks and clothes you no longer fit?  

Spoonie_Turtle

tightauldgit said:

soolin said:

As the OP talked about ‘trading’ so many times in their post it never really occurred to me that they were just selling unwanted items. If they were a private seller and can demonstrate the items were unwanted personal items then all they would need to do in the first instance is to reply saying they have no additional business income to declare. 

Obviously this will result in more questions and some requirements to prove their statement, but no need for any worry about accounts , as long as they can demonstrate their statement was correct. 

I suppose there's probably some kind of materiality test as well where they assume that you didn't make £18k profit in a year selling your unwanted nik-naks and clothes you no longer fit?  

That did cross my mind as well before commenting in the first place, but if they're selling, e.g. some cars for family and friends and counting everything as 'profit' after listing fees etc., or several bits of specialist equipment from a past hobby or business (past business meaning it's long since ceased trading), then it might be possible.

I definitely acknowledge the OP does say trading but they need to be really clear and absolutely sure they were trading.  Otherwise they'd end up going through all the hassle for nothing, if they don't actually need to pay tax on their eBay payments.

RFW

FFHillbilly said:

from my experience with accountants and claims with HMRC, they will just do whatever is necessary (or even some stuff that isn't necessary) and add it to your bill, which will be a lot more than £300

You've had some bad accountants then. Mine's worth far more than I pay them. As a one off for finite accounting I don't see that £300 was too low. It's only a few hours work for a competent accountant.

RFW

tightauldgit said:

OP did say they were 'trading' so not just a private seller selling their excess bits and bobs. 

It may be right but I've been on here long enough to know that not everyone knows the difference. It works the other way too, those thinking they aren't trading because they only earn £20/week or whatever.

comeandgo

RFW said:

FFHillbilly said:

from my experience with accountants and claims with HMRC, they will just do whatever is necessary (or even some stuff that isn't necessary) and add it to your bill, which will be a lot more than £300

You've had some bad accountants then. Mine's worth far more than I pay them. As a one off for finite accounting I don't see that £300 was too much. It's only a few hours work for a competent accountant.

There are at least 5 year accounts to do, complete returns, sort out fines and penalties, help with payment plan, I’d say bill nearer £1,000, but I’d still say get one as if OP makes mistakes I think it could cost a lot more.  HMRC do not take things lightly.  

RFW

comeandgo said:

There are at least 5 year accounts to do, complete returns, sort out fines and penalties, help with payment plan, I’d say bill nearer £1,000, but I’d still say get one as if OP makes mistakes I think it could cost a lot more.  HMRC do not take things lightly.  

You may be right. From what I can see though it isn't a lot of work, albeit 5 years to do. I can't imagine there are many transactions. I've had a couple of dealings with HMRC checking me out and my accountant shuts them down quite quickly, so just for that they're worth it.
As the OP is employed there could be other things the accountants can look at.

goodfella66

OP seems to have disappeared. Comes on here, asks for help and then doesn't even bother replying, even if it's just to say thanks. Really annoys me!

RFW

goodfella66 said:

OP seems to have disappeared. Comes on here, asks for help and then doesn't even bother replying, even if it's just to say thanks. Really annoys me!

HMRC might have sent the chaps round!

soolin

goodfella66 said:

OP seems to have disappeared. Comes on here, asks for help and then doesn't even bother replying, even if it's just to say thanks. Really annoys me!

I agree, I have in the past suggested on a thread that we give a couple of responses but then stop until OP comes back to fill in the missing gaps. So many' post and ignore' threads at the moment.