Starting a New eBay Business

jabbawoki

Hiya

Can anyone help me?
I have purchased stock for selling on ebay but due to the fact that it is multiple items n a regular basis I believe I need to set up as a sole trader. I have a full time job. I understand that tax is paid at my applicable personal tax rate.

What other obligations do I have as an ebay trader?

1. Insurances - do I need any?
2. Accounting - I understand that I have to complete a self assessment form and just fill in 3 lines, Not provide detailed accountants.
3. I need to keep all my receipts from anything I have purchased.
4. I currently have a personal ebay account which is 100% positive feedback from over 180 transactions, Would it be beneficial to reference this as I start the business account so that people have an indication of my personal ebay track record.

Thank you for reading this and I just hope some successful ebay entrepeneur can share some pearls of wisdom with me.

regards

James:D

scbk

TBH I'd use your current ebay id for selling as you already have feedback, then set up another id for your personal buying where you don't need feedback

jabbawoki

Thanks buddy for that. Anyone got any advice on the finer points detailed?

Mnay Thanks

James

jabbawoki

Hello, anyone feedback would be much appreciated :-)

cazmanian_minx

jabbawoki wrote: »

What other obligations do I have as an ebay trader?

1. Insurances - do I need any?
2. Accounting - I understand that I have to complete a self assessment form and just fill in 3 lines, Not provide detailed accountants.
3. I need to keep all my receipts from anything I have purchased.
4. I currently have a personal ebay account which is 100% positive feedback from over 180 transactions, Would it be beneficial to reference this as I start the business account so that people have an indication of my personal ebay track record.

Hi James,

1. That's up to you. If you're working from home, you may want to tell your contents insurance people, otherwise if your stock is stolen, they may refuse to pay out. Depending on what you're selling, you may also want to look at product liability insurance, plus public liability insurance if you're going to be allowing customers onto your premises. I have to say, I've never had either, but then bead-buying customers are generally very nice people and don't cause me hassle.

2. You only get to do the 3-line accounts up to a certain amount of turnover. It used to be £15k, but judging from my 07/08 self-assessment form, it's gone up to £30k.

3. Correct.

4. I agree with scbk, change your personal account into a business one. eBay has certain requirements for business sellers as of 1st May - have a read of:
http://www2.ebay.com/aw/uk/200804.shtml#2008-04-11101040
and make sure that your account complies. You'll also need to change your account type to Business in My Account ->Personal Information.

Good luck!

Caz

soolin

Also just one other hting to add, when you register with HMRC, assuming you have not done so already, you often get offfered free workshops and even a personal manager you can contact by phone. Say yes to those options as you can pick up some useful tips about what is allowable and the strange little things you can claim against tax.

My poor manager had to help me sort out my voluntary NI contributions as I was really struggling to get the DD set up properly.

jabbawoki

cazmanian_minx wrote: »

Hi James,

1. That's up to you. If you're working from home, you may want to tell your contents insurance people, otherwise if your stock is stolen, they may refuse to pay out. Depending on what you're selling, you may also want to look at product liability insurance, plus public liability insurance if you're going to be allowing customers onto your premises. I have to say, I've never had either, but then bead-buying customers are generally very nice people and don't cause me hassle.

2. You only get to do the 3-line accounts up to a certain amount of turnover. It used to be £15k, but judging from my 07/08 self-assessment form, it's gone up to £30k.

3. Correct.

4. I agree with scbk, change your personal account into a business one. eBay has certain requirements for business sellers as of 1st May - have a read of:
http://www2.ebay.com/aw/uk/200804.shtml#2008-04-11101040
and make sure that your account complies. You'll also need to change your account type to Business in My Account ->Personal Information.

Good luck!

Caz

Thanks Caz, Great advice

jabbawoki

jabbawoki wrote: »

Thanks Caz, Great advice

........and Soolin :A