HMRC sent online marketplace letter for undeclared sales.

Nomunnofun1

TheSpectator said:

Nomunnofun1 said:

mancmanc said:

Bookworm105 said:

mancmanc said:

Ayr_Rage said:

Sounds absolutely bonkers, she is the one that should be paying any tax on her account.

That can of worms may result in a bigger audit by the tax man, hope you have kept all of your records.

Would they not just look to see I have submitted the relevant amount of sales in my tax and move on?

that is not how the UK tax system operates. The days when women were taxed as adjuncts of their husbands are long gone.

You and you wife may or may not be in the same tax bracket, that is the whole point of reporting income according to whose it is. Selling in her name but "taking" the money yourself is just wrong.

it is all my income, not my wife's income. its my purchases, my stock, my sales, my business. I just didnt think it was overly important where I sell it/ who's account I sell it on

You understand that and your intentions may have been honourable. Your problem is not in convincing posters on this thread. 

You must now convince HMRC 

Not so sure HMRC will see it any differently as a few posters her either HMRC employees (or ex) and others are accountants/tax advisors.

For my sins I have had two entries on that short list! Professional advice needed. 

DRS1

Just a thought - is it possible to say the OP's wife was acting as his nominee in setting up the online accounts and facilitating the sale of his assets via her accounts?  You then look through the nominee to the OP.

TheGreenFrog

DRS1 said:

Just a thought - is it possible to say the OP's wife was acting as his nominee in setting up the online accounts and facilitating the sale of his assets via her accounts?  You then look through the nominee to the OP.

Yes I agree.  It sounds as though, as a matter of fact, the business is that of the OP and the only role of OP's partner has been willingly to act as undisclosed agent.  I don't see why that should give rise to any tax issues if OP has been making a full declaration.

mancmanc

TheGreenFrog said:

DRS1 said:

Just a thought - is it possible to say the OP's wife was acting as his nominee in setting up the online accounts and facilitating the sale of his assets via her accounts?  You then look through the nominee to the OP.

Yes I agree.  It sounds as though, as a matter of fact, the business is that of the OP and the only role of OP's partner has been willingly to act as undisclosed agent.  I don't see why that should give rise to any tax issues if OP has been making a full declaration.

This is exactly the case. Although I must admit, everyone's opinions have got me panicked, but it is literally a case of this. I am just selling on various different ebay accounts. Everything in my business is bought and sold by me, there is absolutely no attempts to avoid any tax, I declare everything every year from any ebay account I sell on and I pay the tax

Ayr_Rage

However ebay will report the account activity to HMRC and the owner of the account isn't you.

You seem to be burying your head in the sand.

TheSpectator

mancmanc said:

TheGreenFrog said:

DRS1 said:

Just a thought - is it possible to say the OP's wife was acting as his nominee in setting up the online accounts and facilitating the sale of his assets via her accounts?  You then look through the nominee to the OP.

Yes I agree.  It sounds as though, as a matter of fact, the business is that of the OP and the only role of OP's partner has been willingly to act as undisclosed agent.  I don't see why that should give rise to any tax issues if OP has been making a full declaration.

This is exactly the case. Although I must admit, everyone's opinions have got me panicked, but it is literally a case of this. I am just selling on various different ebay accounts. Everything in my business is bought and sold by me, there is absolutely no attempts to avoid any tax, I declare everything every year from any ebay account I sell on and I pay the tax

So who would the buyer take any action against if need be- you or your wife. Who does ebay think has sold the goods. I'm assuming your wife provided her NINO to ebay as I believe is now a requirement.

This 'agent' thing will not wash with HMRC especially if differing tax rates are in play but you seem determined to find reasons to ignore the advice of the many so will leave you to it.

mancmanc

TheSpectator said:

mancmanc said:

TheGreenFrog said:

DRS1 said:

Just a thought - is it possible to say the OP's wife was acting as his nominee in setting up the online accounts and facilitating the sale of his assets via her accounts?  You then look through the nominee to the OP.

Yes I agree.  It sounds as though, as a matter of fact, the business is that of the OP and the only role of OP's partner has been willingly to act as undisclosed agent.  I don't see why that should give rise to any tax issues if OP has been making a full declaration.

This is exactly the case. Although I must admit, everyone's opinions have got me panicked, but it is literally a case of this. I am just selling on various different ebay accounts. Everything in my business is bought and sold by me, there is absolutely no attempts to avoid any tax, I declare everything every year from any ebay account I sell on and I pay the tax

So who would the buyer take any action against if need be- you or your wife. Who does ebay think has sold the goods. I'm assuming your wife provided her NINO to ebay as I believe is now a requirement.

This 'agent' thing will not wash with HMRC especially if differing tax rates are in play but you seem determined to find reasons to ignore the advice of the many so will leave you to it.

What advice am I ignoring? I just replied to HMRC saying what the situation is, I didnt know what happens next, I was asking this. 

MattMattMattUK

Using another person's eBay account is a breach of eBay's terms and conditions, one this is confirmed to them they may well to choose all accounts for both parties, some accounts or just the ones on breach.

To sell on eBay you need to provide your NI number, those sales are reported to HMRC, I suspect that HMRC are very unlikely to take the "pragmatic" view and instead they will tale the position as it exists within legislation which is that partners/spouses cannot unilaterally transfer income to each other. 

How many years have you been doing this? HMRC can go back and charge your wife for the unpaid tax, as well as penalties and interest. They may allow you to refile, but possibly only one year at most.

Ayr_Rage said:

You seem to be burying your head in the sand.

I totally agree with this, it is not just going to go away, you will both likely be audited for several years, you will likely need an accountant to assist you.

mancmanc

MattMattMattUK said:

Using another person's eBay account is a breach of eBay's terms and conditions, one this is confirmed to them they may well to choose all accounts for both parties, some accounts or just the ones on breach.

To sell on eBay you need to provide your NI number, those sales are reported to HMRC, I suspect that HMRC are very unlikely to take the "pragmatic" view and instead they will tale the position as it exists within legislation which is that partners/spouses cannot unilaterally transfer income to each other. 

How many years have you been doing this? HMRC can go back and charge your wife for the unpaid tax, as well as penalties and interest. They may allow you to refile, but possibly only one year at most.

Ayr_Rage said:

You seem to be burying your head in the sand.

I totally agree with this, it is not just going to go away, you will both likely be audited for several years, you will likely need an accountant to assist you.

Since they introduced having to put NINO I have changed all the accounts to my name. but this goes back 12 years

MattMattMattUK

mancmanc said:

MattMattMattUK said:

Using another person's eBay account is a breach of eBay's terms and conditions, one this is confirmed to them they may well to choose all accounts for both parties, some accounts or just the ones on breach.

To sell on eBay you need to provide your NI number, those sales are reported to HMRC, I suspect that HMRC are very unlikely to take the "pragmatic" view and instead they will tale the position as it exists within legislation which is that partners/spouses cannot unilaterally transfer income to each other. 

How many years have you been doing this? HMRC can go back and charge your wife for the unpaid tax, as well as penalties and interest. They may allow you to refile, but possibly only one year at most.

Ayr_Rage said:

You seem to be burying your head in the sand.

I totally agree with this, it is not just going to go away, you will both likely be audited for several years, you will likely need an accountant to assist you.

Since they introduced having to put NINO I have changed all the accounts to my name. but this goes back 12 years

Do you have an accountant, if you do, do they offer tax advise?