Sole trader, buying from amazon business account... declare it?

mt25810

Hi there, i am a small ebay seller where i make to sell, i do not make much bit over the amount where i pay tax to HMRC and a registered sole tradei have been getting emails from Amazon about having a free business account to buy things which are cheaper being a sole trader..so ove registered and waiting for it to go through.

I am still new to everything and no idea how most things work as i was doing this and still am for extra money and thats all it is....a little extra money. So im not super business minded

What i do and find best for me when filing my taxes is using the £1k trading allowance and dedicting it from my earnings from ebay etc and then oay tax on the rest as thats just easier for me to work out.

So with me doing this....if i buy items cheaper via amazon business account which i presume are just with the VAT or something removed do i need to do anything as far as HMRC when i buy anything 

Do i declare it to them or can i just buy cheaper items and thats it. Just making sure i don't mess up and end up owing tax people or something lol

mt25810

Hope anyone can help 

pramsay13

It's either or. If you use the £1000 trading allowance you can't claim expenses as well.

MyRealNameToo

mt25810 said:

Hi there, i am a small ebay seller where i make to sell, i do not make much bit over the amount where i pay tax to HMRC and a registered sole tradei have been getting emails from Amazon about having a free business account to buy things which are cheaper being a sole trader..so ove registered and waiting for it to go through.

I am still new to everything and no idea how most things work as i was doing this and still am for extra money and thats all it is....a little extra money. So im not super business minded

What i do and find best for me when filing my taxes is using the £1k trading allowance and dedicting it from my earnings from ebay etc and then oay tax on the rest as thats just easier for me to work out.

So with me doing this....if i buy items cheaper via amazon business account which i presume are just with the VAT or something removed do i need to do anything as far as HMRC when i buy anything 

Do i declare it to them or can i just buy cheaper items and thats it. Just making sure i don't mess up and end up owing tax people or something lol

Registration as a sole trader is based on revenue not profits. If you are generating £2,000 of sales but its costing you £2,500 to do it you would still need to register as a sole trader even though you'd have no tax to pay having made a loss. 

You can claim trading allowance or expenses not both, just add up your expenses, if its more than £1k claim that, if its less claim the allowance. 

It's therefore a simple win win if you can get your supplies cheaper. Even if you were massively over the £1k trading limit you'd make more profit and so pay more tax but would still be up on a net basis.