how much money can you make on ebay without paying tax?

soolin

I agree about the Class 2 NIC. I pay mine vountarily as they cover a lot of benefits and such like and the actual cost is quite low.

MickKnipfler

Do you still have to pay class 2 NI if you already pay class 1 through PAYE?

Also, do you need an accountant or can you do your own accounts?

blue_monkey_2

I am not sure, I think when you self assess you will be told then how much extra you have to pay (it is around 11% of your profit if already PAYE up to a capped limit, I can't remember what that is though).

I do my won self assessment, it is really easy depending on what you are earning. It is he money that comes in, less the money you pay out, less the fees (you do not deduct these first, the money in is BEFORE paypal fees and money in includes postage you charge, not just the price of the goods). You can claim traveling costs (to get stock, go to the Post office etc...) at 40p per mile and this will just be an expense, your profit will be what is left. If on PAYE you will add the figires from your P60 and if you do your return online it will tell you there and then what tax is due. You can do it yourself but if you are not sure at all then yes, you'll need an appointment, if this is a long term thing you might consider a course in book keeping as it would be cheaper than an accountant.

HTH.

MickKnipfler

Thanks,

The reason I ask is that I'm a part time musician and have just started playing in a band. I think it will be pretty easy to demonstrate a loss though. That's not a problem because it's only a business to HMRC, I call it a hobby!

RFW

MickKnipfler wrote: »

Thanks,

The reason I ask is that I'm a part time musician and have just started playing in a band. I think it will be pretty easy to demonstrate a loss though. That's not a problem because it's only a business to HMRC, I call it a hobby!

Musician's union will be able to offer advice on this.

blue_monkey_2

MickKnipfler wrote: »

Thanks,

The reason I ask is that I'm a part time musician and have just started playing in a band. I think it will be pretty easy to demonstrate a loss though. That's not a problem because it's only a business to HMRC, I call it a hobby!

Yes, I guess it would depend on how you are paid, I would ask the union, if it is extra work then you, technically you would be seld employed as you are earning but you can claim any loss against the money you are earning in your usual job and claim any tax back if overpaid, so if making a losss that is certainly something else to think about as well. Just fill in the approriate boxes on the Self Assessment form - if you do it on their online forms then it does it all for you, I can't praise the service enough but you have to register a month or so before you use it as it takes a good few weeks for the passwords to come though.

if you are going to make a loss then I would definately register as you'll be entitled to a tax rebate and if getting tax credits it'll mean you earn less so will be entitled to more.

MickKnipfler

Ironic really, I'll only be turning over about £100pm but because HMRC insist that I register, it will actually work in my favour. I certainly don't want to get caught not registering as I run a Ltd Co

BigCraigJohn

Its worth doing, when I first started I declared so much against my tax, if you work from home you can even claim a percentage of rent, internet, phone, utility bills etc.
Also car costs, petrol etc + anything you already owned such as pc's and other such bits can be claimed as expenses if your using them for your business. Ive got an accountant who goes over everything and does my tax return, cheap but saves a fortune on bits n bobs that i'd never even think about claiming but its all fair, at the end of the day you pay for the things and if you are using them more or just for business you should be able to claim them back. My first year I did get a nice tax rebate. + the sooner you get registered the sooner youve got proof of profit/turnover etc + its nice to feel legit and not be worried about getting in trouble.