Tax and NI split thread

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This discussion was created from comments split from: Tax and N.I. Ebay.

TimeLord1

Quick question: are you paying monthly for a shop as a private seller? 


Your Situation: You mentioned selling more than 30 items with a total value of around £500. While your sales value is below the approximate £1,700 threshold, you do meet the criteria for the number of items sold. This is likely why eBay is requesting your information.

And will probably restrict your account until it is provided. 

soolin

TimeLord1 said:

Quick question: are you paying monthly for a shop as a private seller? 

I don’t see that OP mentioned a shop at all and I can’t see it being cost effective if they were on their level of sales they mention. Both business and private sellers can have eBay shops, so it is immaterial anyway. 

TimeLord1

soolin said:

TimeLord1 said:

Quick question: are you paying monthly for a shop as a private seller? 

I don’t see that OP mentioned a shop at all and I can’t see it being cost effective if they were on their level of sales they mention. Both business and private sellers can have eBay shops, so it is immaterial anyway. 

You would be surprised how many there are; many did so after the vouchers for packaging materials and better options for selling. 

He also stated more than 30 items in the last year? That would be January depending on whenever he joined. But how many more than the 30 items again he could be way over?

soolin

TimeLord1 said:

soolin said:

TimeLord1 said:

Quick question: are you paying monthly for a shop as a private seller? 

I don’t see that OP mentioned a shop at all and I can’t see it being cost effective if they were on their level of sales they mention. Both business and private sellers can have eBay shops, so it is immaterial anyway. 

You would be surprised how many there are; many did so after the vouchers for packaging materials and better options for selling. 

He also stated more than 30 items in the last year? That would be January depending on whenever he joined. But how many more than the 30 items again he could be way over?

Private shops are completely different to shops for business sellers, for a start they only have one type of shop and don’t get any of the packaging supplies or such like. 

I would find it strange that a seller who is selling as a private seller and entitled to 300 new free listings a month would willingly change their account to a business account and pay an expensive shop subscription , surely they would gain nothing, and since the packaging voucher only applied to higher level shops, paying around £90 a month more to get a £10 voucher for packaging supplies that were overpriced and mostly out of stock anyway. 

For people reading this thread and unsure about shops this is the link for private shops (all you gain is 100 free extra listings a month) 

https://www.ebay.co.uk/sub/subscriptions


Here’s the link for business seller shops, the basic shop is £27 plus VAT, if you want a £10 packaging voucher then it’s £77 plus VAT 

https://www.ebay.co.uk/help/selling/ebay-stores/ebay-shops?id=4071

however, I think this is off topic as OP never mentioned a shop at all, just that they were a private seller.

TimeLord1

@soolin A lot of that was down to YouTube bloggers promoting cross listing and perks and generally telling people how they make the money they do. So that's why I was asking him the question because I know a lot of people decided to follow that advice. 

soolin

TimeLord1 said:

@soolin A lot of that was down to YouTube bloggers promoting cross listing and perks and generally telling people how they make the money they do. So that's why I was asking him the question because I know a lot of people decided to follow that advice. 

I think there must be a lot of people out there who need to be referred to sites like this! 

TimeLord1

@soolin I think a lot of it came down to the items used to start reselling online. Use this method, these items, and these tips. All with affiliated links.

I remember seeing one on claiming on a damaged item in transit vlog; although quite informative, they claimed to have done this successfully lots of times previously. Hadn't actually ever used it. 

Have you ever donene a step-by-step guide for selling online essentials needed and best-priced cost-effective items?

soolin

TimeLord1 said:

@soolin I think a lot of it came down to the items used to start reselling online. Use this method, these items, and these tips. All with affiliated links.

I remember seeing one on claiming on a damaged item in transit vlog; although quite informative, they claimed to have done this successfully lots of times previously. Hadn't actually ever used it. 

Have you ever donene a step-by-step guide for selling online essentials needed and best-priced cost-effective items?

I've never done anything formally although I have helped individuals and some smaller groups in the past. I certainly wouldn't be telling private sellers though to open business accounts, display all their geographic details and give up free listings and the ability not to pay FVFs in order to pay fees, pay to list, have to accept change of mind returns etc and deal with HMRC as appropriate. I have never seen the benefit of paying loads of money to sell a few personal items, surely the reason to sell  is to make money, not spend it on unnecessary upgrades? Even though I have a business account, I still use a private account to sell my own private items, why would I want to pay loads extra to sell when I can list for free?

I do completely agree though that it is possible to trade on an ebay business account and not be liable to pay tax, but it does rather complicate matters when dealing with HMRC when they get the 'business' return and wonder why the seller isn't registered. 

Obviously re sellers and all other  businesses need to be properly registered but I see no reason in the OP to suggest this is in any way a person running a business. 

petunia100

Spoonie_Turtle said:

petunia100 said:

So I have a banner on my private account telling me to give Ebay my N.I. and Tax info. Why should I when I am a private seller only selling things and clothes that I no longer want? Although I have sold more than 30 items in the last year, they are all small amounts and totall approx. £500 in the last year and a lot less in actual profit. I don't know what my profit is anyway as I don't keep accounts. I thought that you only had to declare these details if your profit was over a £1,000 per year.
Why should I give Ebay highly sensitive info about me, which I believe could put me at risk of identity theft if there was a data breach? 
Can anyone advise me please?

If you are trading then the £1,000 threshold for reporting is based on gross receipts not profit.  But obviously you would only potentially be taxed on profit.

If you're not trading then you don't need to report anything to HMRC.  You do still need to comply with what eBay request of you though in order to continue using their platform.

So if they have a data breach surely my identity could be stolen. 

Spoonie_Turtle

petunia100 said:

Spoonie_Turtle said:

petunia100 said:

So I have a banner on my private account telling me to give Ebay my N.I. and Tax info. Why should I when I am a private seller only selling things and clothes that I no longer want? Although I have sold more than 30 items in the last year, they are all small amounts and totall approx. £500 in the last year and a lot less in actual profit. I don't know what my profit is anyway as I don't keep accounts. I thought that you only had to declare these details if your profit was over a £1,000 per year.
Why should I give Ebay highly sensitive info about me, which I believe could put me at risk of identity theft if there was a data breach? 
Can anyone advise me please?

If you are trading then the £1,000 threshold for reporting is based on gross receipts not profit.  But obviously you would only potentially be taxed on profit.

If you're not trading then you don't need to report anything to HMRC.  You do still need to comply with what eBay request of you though in order to continue using their platform.

So if they have a data breach surely my identity could be stolen. 

Perhaps, but the same could be said for HMRC, or DWP if you've ever claimed anything like even Child Benefit.