Is it possible to sell on Ebay for profit and just let Ebay deduct tax at standard rate from all sal

Grumpy_chap

Gobsh said:

Is it possible to sell on Ebay for profit and just let Ebay deduct tax at standard rate from all sales. Just like they make all other deductions?
Or is that too easy?

How would eBay know what profit to apply the tax against?
How would eBay know what marginal tax rate to apply?

Gobsh

Just deduct tax at full rate on the whole sale. Yeap tax would be over and above but small sellers could opt to pay £9.80 per year instead £7.40 and save £100s hours of paperwork and hmrc would make/save £millions

Grumpy_chap said:

How would eBay know what profit to apply the tax against?

How would eBay know what marginal tax rate to apply?

Grumpy_chap

Gobsh said:

Just deduct tax at full rate on the whole sale. 

So, I sell a used thing for £10 on eBay (after eBay fees).
Under the proper rules, that is not subject to any deduction for income tax because it was my own stuff that I was selling.

The highest marginal income tax rate is 60% (£100k - £125k) so is that the rate you suggest eBay deduct from every sale?  (In fact, eBay would need to know under which UK Country your tax is processed - higher rates in Scotland).

You would have me only receive £4 for something that I currently receive £10.

It seems far from simple.

soolin

Gobsh said:

Just deduct tax at full rate on the whole sale. Yeap tax would be over and above but small sellers could opt to pay £9.80 per year instead £7.40 and save £100s hours of paperwork and hmrc would make/save £millions

Grumpy_chap said:

How would eBay know what profit to apply the tax against?

How would eBay know what marginal tax rate to apply?

I think you might be wise to get your head around how tax actually works to understand why so many of us so incredulous about this as a concept. I suspect you are pulling our leg suggesting this as a real option. 

just another point, can you imagine how much our fees would have to go up for eBay to employ all the staff to monitor all the tax and NI , ensure payments are handled correctly through Uk banking and Tax regulations etc. 

Grumpy_chap

soolin said:

Gobsh said:

Just deduct tax at full rate on the whole sale. Yeap tax would be over and above but small sellers could opt to pay £9.80 per year instead £7.40 and save £100s hours of paperwork and hmrc would make/save £millions

Grumpy_chap said:

How would eBay know what profit to apply the tax against?

How would eBay know what marginal tax rate to apply?

I think you might be wise to get your head around how tax actually works to understand why so many of us so incredulous about this as a concept. I suspect you are pulling our leg suggesting this as a real option. 

just another point, can you imagine how much our fees would have to go up for eBay to employ all the staff to monitor all the tax and NI , ensure payments are handled correctly through Uk banking and Tax regulations etc. 

OK - I had only contributed to the thread in good faith.

I'll go now

Spoonie_Turtle

Grumpy_chap said:

soolin said:

Gobsh said:

Just deduct tax at full rate on the whole sale. Yeap tax would be over and above but small sellers could opt to pay £9.80 per year instead £7.40 and save £100s hours of paperwork and hmrc would make/save £millions

Grumpy_chap said:

How would eBay know what profit to apply the tax against?

How would eBay know what marginal tax rate to apply?

I think you might be wise to get your head around how tax actually works to understand why so many of us so incredulous about this as a concept. I suspect you are pulling our leg suggesting this as a real option. 

just another point, can you imagine how much our fees would have to go up for eBay to employ all the staff to monitor all the tax and NI , ensure payments are handled correctly through Uk banking and Tax regulations etc. 

OK - I had only contributed to the thread in good faith.

I'll go now

That were responding to the person that originally suggested paying tax on everything, not you

soolin

Grumpy_chap said:

soolin said:

Gobsh said:

Just deduct tax at full rate on the whole sale. Yeap tax would be over and above but small sellers could opt to pay £9.80 per year instead £7.40 and save £100s hours of paperwork and hmrc would make/save £millions

Grumpy_chap said:

How would eBay know what profit to apply the tax against?

How would eBay know what marginal tax rate to apply?

I think you might be wise to get your head around how tax actually works to understand why so many of us so incredulous about this as a concept. I suspect you are pulling our leg suggesting this as a real option. 

just another point, can you imagine how much our fees would have to go up for eBay to employ all the staff to monitor all the tax and NI , ensure payments are handled correctly through Uk banking and Tax regulations etc. 

OK - I had only contributed to the thread in good faith.

I'll go now

I was responding to the OP, I just checked my quote and it shows their post and not yours. I completely agree with you. 

Grumpy_chap

soolin said:

Grumpy_chap said:

soolin said:

Gobsh said:

Just deduct tax at full rate on the whole sale. Yeap tax would be over and above but small sellers could opt to pay £9.80 per year instead £7.40 and save £100s hours of paperwork and hmrc would make/save £millions

Grumpy_chap said:

How would eBay know what profit to apply the tax against?

How would eBay know what marginal tax rate to apply?

I think you might be wise to get your head around how tax actually works to understand why so many of us so incredulous about this as a concept. I suspect you are pulling our leg suggesting this as a real option. 

just another point, can you imagine how much our fees would have to go up for eBay to employ all the staff to monitor all the tax and NI , ensure payments are handled correctly through Uk banking and Tax regulations etc. 

OK - I had only contributed to the thread in good faith.

I'll go now

I was responding to the OP, I just checked my quote and it shows their post and not yours. I completely agree with you. 

Thanks - a misread somewhere.  no harm done