Email From Ebay Asking If Private Or Business Seller

soolin

A quick Google search confirms that Mr Piggott got 3 years for an alleged tax fraud of 3 million pounds

http://news.bbc.co.uk/onthisday/hi/dates/stories/october/23/newsid_3755000/3755282.stm

freddysmith

Mr Piggott and Mr Freddysmith are not in the same league, thankfully.
It is starting to make me think more about the tax implications and if/when Ebay (traders) are going to get asked questions on possible income from sales.
The shine has been taken off Ebay since Christmas for me, maybe its reality kicking in about the whole selling aspect surrounding Ebay and that I am losing the fun factor I once had.

soolin

Mr FreddySmith, I am very disappointed that you are not in the same league as Lester Piggot. I'm not either.....

3 million ...wow

Agent_Cooper

Unlikely, unless it is deliberate tax evasion on a relatively large scale. If they investigate you and owe Tax, they will usuallly make you pay back that money and hit you with fine on top.

There seems to be a lot of scaremongering going on at the moment about this subject. Do you honestly think that the HMRC have got the inclination (or the manpower) to go chasing the thousands of Ebay sellers up and down the country who buy the odd item specifically to sell on and haven't registered with them as Self-Employed?! It will only happen if you have been making a lot of money via Ebay which you haven't declared or somebody reports you.

Time2Go_25

Agent_Cooper wrote: »

Unlikely, unless it is deliberate tax evasion on a relatively large scale. If they investigate you and owe Tax, they will usuallly make you pay back that money and hit you with fine on top.

There seems to be a lot of scaremongering going on at the moment about this subject. Do you honestly think that the HMRC have got the inclination (or the manpower) to go chasing the thousands of Ebay sellers up and down the country who buy the odd item specifically to sell on and haven't registered with them as Self-Employed?! It will only happen if you have been making a lot of money via Ebay which you haven't declared or somebody reports you.

I'm sure they wont, but surely it would not be responsible for people on this board to advise people who are trading NOT to register with HMRC.

RFW

moneysavingchicken wrote: »

I am 100% in favour of compliance with leglislation; however, note that in America there is no such rule enforced by eBay for declaring busines status/address on eBay and meanwhile the American economy and US tax collection system are not collapsing as a result. So it seems peculiar that of all the laws which arguably can be better enforced, this one affecting little micro-businesses run by minor market players only looking to make a little bit of money (and arguably reduce their prospect of having to rely on public funds) is being so scrutinized at this time. As eBay has said this is due to European business regulation, it would also be interesting to see if only the UK is pressing for the enforcement or if other European countries are equally concerned.

If the Taxman is going to hunt down tiny eBayers, shouldn't it also deploy it's reconaissance teams among bootsales at school carparks and similar locations throughout the country?

The US doesn't have a benefit system, so its not always the best comparison. AFAIK Germany has introduced similar changes.

Customs regularly send people to carboot sales as do trading standards. There are plenty who slip through the net but the risks of trying it are too great.

For those thinking this is scaremongering......

http://www.gazetteandherald.co.uk/mostpopular.var.2043356.mostcommented.ebay_trader_in_court_for_benefit_fraud.php

MyUserNamesTaken

Strangely enough, I've been on Ebay since 1998 and I've never had to specify which type of account I had. I've just logged in to take a look and I'm already showing as a Private account. I wonder if those getting the email are down as private sellers, but their sales would indicate that they are more likely traders?

soolin

I think they will ask us all eventually as some of those who have already received the email are not even sellers.

Like you I registered in 1999 and whilst I am registered for tax I am still showing as a private seller, quite legitimately under the old rules, on ebay. I think when we registered we weren't even given the option..

MyUserNamesTaken

soolin wrote: »

I think they will ask us all eventually as some of those who have already received the email are not even sellers.

Like you I registered in 1999 and whilst I am registered for tax I am still showing as a private seller, quite legitimately under the old rules, on ebay. I think when we registered we weren't even given the option..

Yep, I don't remember being asked when I registered all those years ago! Just check ed again...I'm in my 10th year now...registered in 1998 on Ebay.com (not 99, as I thought), as ebay.co.uk wasn't about at that time from what I can remember...back in the day when I had to use escrow to pay sellers in the US, as paypal didn't exist either! Yahoo auctions were good back then, too...shame about them

Thing is, people getting this email seem to be saying they are showing as neitgher private or business, hence Ebay asking for clarification. Will wait to see if I get this email.

moneypooh

I had to clarify my status when I tried to list 25 items at the beginning of the month. I do sell quite a bit - but I'm having the biggest clearout ever, and it's no more than a really good bootful, but when listed individually looks huge!!

I haven't bought anything to sell on, it's just the stuff I don't need anymore.
I guess ebay aren't going to hassle me as they'll see that selling a DVD for 99p isn't good business sense!
I sell the children's old clothes/shoes/toys/games & books. This can be a reasonable amount over a year, but as none make a profit & 99% are 2nd hand I can't see me needing a business account quite yet.

It's still a great way of getting things 'out the door'.