Ebay and Tax

chevalier

Hi all
Just wondering what the tax situation is with buying and selling on ebay? I am unemployed but not signing on as I am not allowed. So that isn't an issue. But I do wonder what the income tax implications are of doing some small time selling. So if there are any accountants out there who could help, then that would be great.
Thanks

angelcake

I expect someone will come and either correct or confirm for me but I think that the tax is included in ebay fees?

divadee

As far as I am aware then the tax rules are (and im not a tax accountant) that if you are buying products to sell on at aprofit then you are a trader and usual self employed tas rules apply. If you are selling stuff from round the house (that you might normally car boot etc...) then you are not a trader but a private seller.

I dont think the tax man has got time to deal with trader on e-bay though unless you were raking in millions

doubledark

Actually if you read the community boards on eBay it seems quite well known that the Inland Revenue are aware of people making a living from it but not declaring tax.

Even heard they have teams of investigators checking out sellers with high feedbacks, don't know if this is true ???

johnllew

Even heard they have teams of investigators checking out sellers with high feedbacks, don't know if this is true  ???

It's bound to be true or the Revenue wouldn't be doing their job properly.

laurence2163

I am an accountant and have done a bit of small scale buying and selling on ebay as a lunch break hobby. Whilst it is true that tax liabilities would be payable on profits from such ventures the likelihood of an investigation is very small. I would say that your likelihood of investigation goes up along with your feedback status. So consider running a couple of seperate ID's going at the same time (with your wife's details being on the second one) so as to keep your feedback scores at levels less likely to arose suspicion.