HMRC sent online marketplace letter for undeclared sales.

TheSpectator

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

You better hope ebay don't provide HMRC with the info going back 12 years.

Hoenir

HMRC can be like a dog with a bone. Once they've got their teeth into something they are not going to let go. Besides which they have formidable powers. Onus is very much on the taxpayer to prove their case. Make sure that you have your ducks lined up in a row. Before engaging further. You should have retained at least your last 6 years of accounting records for this very scenario. If you do actually have undeclared sales of any kind.  Then self declaration is a way of mitgating penalties and avoiding the HMRC's full wrath. 

HillStreetBlues

silvercar said:

Hopefully hmrc will be pragmatic, the income has been declared and the tax paid. People have online accounts, whether they are eBay, vinted, Etsy, Facebook marketplace etc in all sorts of names to take advantage of promotions etc I know of friends who have accounts in the name of young children, deceased relatives and of pets

I agree with your friends use of names.
A person can use any name they want as long it's not to deceive.
If OP used his pet's name doesn't mean that the dog now has to pay tax.

mybestattempt

HillStreetBlues said:

silvercar said:

Hopefully hmrc will be pragmatic, the income has been declared and the tax paid. People have online accounts, whether they are eBay, vinted, Etsy, Facebook marketplace etc in all sorts of names to take advantage of promotions etc I know of friends who have accounts in the name of young children, deceased relatives and of pets

I agree with your friends use of names.
A person can use any name they want as long it's not to deceive.
If OP used his pet's name doesn't mean that the dog now has to pay tax.

I would view setting up an account with a false name (wife, deceased person or pet) in order to take advantage of a promotion (which is a essentially a financial gain) as deceitful.

In this case even if HMRC decided there was no overall loss of tax, it remains that eBay has been deceived.

Bookworm105

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

but the subject of this thread says it all, HMRC contacted your wife for details of her sales, not yours.

the names on the ebay accounts are what matters and it is that which ebay reports to HMRC, who then check if that person has declared tax. She hasn't, hence the enquiry.
Seller-tax-information | eBay.co.uk

I think all of us in this thread accept that in total all income has been declared and tax paid on it, but that is not how HMRC must view it on the info given to them .

You started this thread by confirming you have already written to HMRC to explain. So the answer to your question "how long" is: wait and see.

In the cost conscious world we now move in (and if you are lucky) you may get an intelligent HMRC person who will see there is no overall tax loss and therefore it is not cost effective for them to investigate further (or you may get a jobsworth or a junior looking to make their mark). Will be interested in knowing your outcome...

eastcorkram

As someone else said, I'm another one who thinks this is an absolutely bonkers way of doing things. I am intrigued though, as to how it will develop. Hopefully the OP will keep the thread updated. Also intrigued as to whether or not they will carry on the same way in future. 

MattMattMattUK

Hoenir said:

HMRC can be like a dog with a bone. Once they've got their teeth into something they are not going to let go. Besides which they have formidable powers. Onus is very much on the taxpayer to prove their case. Make sure that you have your ducks lined up in a row. Before engaging further. You should have retained at least your last 6 years of accounting records for this very scenario. If you do actually have undeclared sales of any kind.  Then self declaration is a way of mitgating penalties and avoiding the HMRC's full wrath. 

Isn't the problem going to be that legally the OP's wife legally has a bunch of undeclared sales, perhaps going back several years and HMRC do not allow spouses to unilaterally transfer income between themselves for tax purposes? The fact that the OP has declared these probably matters little to HMRC.

TheGreenFrog

MattMattMattUK said:

Hoenir said:

HMRC can be like a dog with a bone. Once they've got their teeth into something they are not going to let go. Besides which they have formidable powers. Onus is very much on the taxpayer to prove their case. Make sure that you have your ducks lined up in a row. Before engaging further. You should have retained at least your last 6 years of accounting records for this very scenario. If you do actually have undeclared sales of any kind.  Then self declaration is a way of mitgating penalties and avoiding the HMRC's full wrath. 

Isn't the problem going to be that legally the OP's wife legally has a bunch of undeclared sales, perhaps going back several years and HMRC do not allow spouses to unilaterally transfer income between themselves for tax purposes? The fact that the OP has declared these probably matters little to HMRC.

If spouse acting as agent then there is no transfer of income.  If agent does not charge commission then income is that of the principal.  

HillStreetBlues

mybestattempt said:

HillStreetBlues said:

silvercar said:

Hopefully hmrc will be pragmatic, the income has been declared and the tax paid. People have online accounts, whether they are eBay, vinted, Etsy, Facebook marketplace etc in all sorts of names to take advantage of promotions etc I know of friends who have accounts in the name of young children, deceased relatives and of pets

I agree with your friends use of names.
A person can use any name they want as long it's not to deceive.
If OP used his pet's name doesn't mean that the dog now has to pay tax.

I would view setting up an account with a false name (wife, deceased person or pet) in order to take advantage of a promotion (which is a essentially a financial gain) as deceitful.

In this case even if HMRC decided there was no overall loss of tax, it remains that eBay has been deceived.

I agree with ebay could take action, butt not the tax man

sheramber

Wife has sales recorded against her but has no expenses as husband bought the stock.  

Depending on the level of taxable profit wife may have been due to pay higher rate of tax due to PAYE  income  and/ or class 2 /4 NIC.

So correct tax and NIC may not have been paid.