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07-26-2015
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Activity: 0% Longevity: 64% | | 'Tax Crackdown' Ebay Drop shipping? Internet companies face 'tax crackdown' - BBC News
I have run a small ebay store for the past few years under a realtives name due to me needing to go semi stealth, I had to open a private ltd company to get the limits on selling removed from my paypal account but then closed the company afterwards.
Since I was drop shipping the profits per week were under £80 on a good week and sometimes minus due to returns and buyers claiming they did not receive items. I rarely withdrew money from my paypal to my bank account like <£100 per month. I would guess that if I made £4000 per year it would have been the limit.
Do I need to be worried? I logged into my paypal to see if I could change the settings and register a new business and go a little more legit but it doesn't seem to allow for it.
Worse still, I just played with the settings and looked to see if I could change the business name even and I got a notification to confirm details of my company asking
Confirm account information
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EU regulations require us to confirm your account information.
What is your ownership type?
What is your ownership type?
An individual refers to any physical person acting outside their business, trade or profession
A sole trader What's this?A sole trader is a business owned and run by one individual where there is no legal distinction between the owner and the business. A sole trader may also use a business name other than his or her legal name.
Any other type of business, not-for-profit organisation or government entity What's this?
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I am obviously ****ting myself at this point and need help :(
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07-26-2015
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Activity: 0% Longevity: 56% | | Re: 'Tax Crackdown' Ebay Drop shipping?
They did this a few years back, they like to go after the small person who cant defend themselves, unlike going after Amazon and Ebay themselves.
IF you are pretty legit, then yes, you will be in the target line. I guess its impossible to say at what level are they going to go after (i.e whats the sale threshold where they feel they can invest investigation time to). They cant investigate everyone, but it is a concern for legit accounts.
Shame they wont be able to do anything about the Chinese drop shipping from this country. That would make my day if they did.
Also remember, eBay refuses to provide the HRMC with sellers details. HMRC have to apply for a court order to gain this information, and as eBay is not 'based' in the UK, it is a bigger deal. The amount of loss to ebay to lose all the sellers not declaring their tax, well they would lose MASSIVELY, so they will probably guard this information very well.
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07-26-2015
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Activity: 0% Longevity: 56% | | Re: 'Tax Crackdown' Ebay Drop shipping?
I take it you havent been declaring your income then?
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07-26-2015
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Activity: 0% Longevity: 64% | | Re: 'Tax Crackdown' Ebay Drop shipping?
I haven't no I figured the amount was too small to be worried about, could you help me with this even over skype?
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07-26-2015
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Activity: 0% Longevity: 64% | | Re: 'Tax Crackdown' Ebay Drop shipping?
At the minute I don't know what to do with Paypal asking for business confirmation. Its like I set of a trip wire clicking 'Change Business Name' soon as I did it (didn't go through with it) I got an email from them saying I need to confirm my business details. What do I do here?
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07-26-2015
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Activity: 0% Longevity: 56% | | Re: 'Tax Crackdown' Ebay Drop shipping?
Even £1 income, is strictly income and should be declared. Many people using this forum, and ebay dont declare their income, they see Chinese wholesale sites, and go mad selling counterfeits.
I think you would be better speaking to a solicitor if it concerns you that much, or to be prepared if the worse does happen. £80 a week on bad week, is £16 to the Government or roundabout, over a year thats a fair bit, and you good weeks will make that go up.
As for refunds, losses, you obviously recorded all this each month from your sales?
Dont do the crime, if you cant do the time, thats my motto.
As for PayPal, that dosent sound good, someone else might be able to advise on that.
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07-26-2015
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Activity: 0% Longevity: 64% | | Re: 'Tax Crackdown' Ebay Drop shipping?
The paypal confirm account details is giving me the option of switching to sole trader. I am considering this as the Ltd company I set up was dissolved a few years back, though I am worried that might be just as bad as leaving it as it is. As far as rising flags are concerned.
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07-26-2015
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Activity: 0% Longevity: 56% | | Re: 'Tax Crackdown' Ebay Drop shipping?
Its not going to matter whether your PayPal is Sole Trader or Company at all. Just leave it alone.
If they come for you, they come for you.
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07-26-2015
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Activity: 0% Longevity: 56% | | Re: 'Tax Crackdown' Ebay Drop shipping?
well no in short lol, no need to shti yourself anyway lol. Assume you have records of what you've bought to dropship somewhere in your bank. If the worst comes to the worst which 99% it won't just tell them you've only made 4k profit per year and then they'll tax you on it and give you a fine on top
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07-26-2015
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Activity: 0% Longevity: 56% | | Re: 'Tax Crackdown' Ebay Drop shipping?
i hope they catch some of the little rats selling vero with half a mil turnovers out of their 1 bedroom flats, making 250k a year profit and paying **** all tax though.
edit lol: makes me sick actually, all they need to do is start fining ebay and courier companies etc for letting people get away with it. I don't think they care personally, probably good to have inflation stay lower. Stuff like this is just for show
Last edited by dan_ebay; 07-26-2015 at 02:30 PM.
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07-27-2015
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Activity: 0% Longevity: 51% | | Re: 'Tax Crackdown' Ebay Drop shipping? Quote:
Originally Posted by dan_ebay i hope they catch some of the little rats selling vero with half a mil turnovers out of their 1 bedroom flats, making 250k a year profit and paying **** all tax though.
edit lol: makes me sick actually, all they need to do is start fining ebay and courier companies etc for letting people get away with it. I don't think they care personally, probably good to have inflation stay lower. Stuff like this is just for show | if they start fining people, then more and more third parties are going to get involved = Even worse news for stealth
i agree though, Tax should be paid for the country you live and operate in. They will get whats coming for them though, HMRC may not be able to access paypal or Ebay but they can see all the money going through you're accounts.
Only a matter of time...........
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07-27-2015
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Activity: 0% Longevity: 56% | | Re: 'Tax Crackdown' Ebay Drop shipping? Quote:
Originally Posted by Trustfund if they start fining people, then more and more third parties are going to get involved = Even worse news for stealth
i agree though, Tax should be paid for the country you live and operate in. They will get whats coming for them though, HMRC may not be able to access paypal or Ebay but they can see all the money going through you're accounts.
Only a matter of time........... | Bank Accounts? No they can't. Not at this point. This isn't America
Ebay account? from the feedback amounts?
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07-27-2015
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Activity: 0% Longevity: 51% | | Re: 'Tax Crackdown' Ebay Drop shipping? Quote:
Originally Posted by wired Bank Accounts? No they can't. Not at this point. This isn't America
Ebay account? from the feedback amounts? | i meant money going through your bank accounts. i may be wrong though, they have to have some means of gauging otherwise they could possibly inforce anything.
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07-28-2015
| Junior Member | | Join Date: Dec 2011
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Activity: 0% Longevity: 71% | | Re: 'Tax Crackdown' Ebay Drop shipping?
I had a tax issue last year, fortunately (for me) I was declaring everything - someone must have gotten a little jealous as my accountant couldn't understand how they had received such information. Anyway, they go through all bank/savings accounts for selected periods of time - they want all ebay/paypal/Amazon details too!
It was a horrible time - and that was with me declaring and paying tax. Everything was finalised early this year with nothing to pay and a thanks for corresponding letter.
Please seek advice from an accountant, it really isn't worth the stress/worry.
Whiteberry X
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07-28-2015
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Activity: 0% Longevity: 91% | | Re: 'Tax Crackdown' Ebay Drop shipping?
I think the tax people may be looking at a higher level income than yours, and they will get contact details from the info that is on the listing for a business acc....
it depends on your total income, eg. if you work at a job or do other ecommerce eg. amazon, website etc.
if this 4000 per year is all you earn from online, it is neither here nor there really,
to be honest I make that much or more just selling my own personal stuff I do not want anymore, nothing to do with business and alot of people do.......
I would be making sure I declared enough from income from whatever source to at least be getting credits towards a future pension though....
Last edited by oompaloompa; 07-28-2015 at 07:55 AM.
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07-28-2015
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Activity: 0% Longevity: 91% | | Re: 'Tax Crackdown' Ebay Drop shipping? Quote:
Originally Posted by whiteberry I had a tax issue last year, fortunately (for me) I was declaring everything - someone must have gotten a little jealous as my accountant couldn't understand how they had received such information. Anyway, they go through all bank/savings accounts for selected periods of time - they want all ebay/paypal/Amazon details too!
It was a horrible time - and that was with me declaring and paying tax. Everything was finalised early this year with nothing to pay and a thanks for corresponding letter.
Please seek advice from an accountant, it really isn't worth the stress/worry.
Whiteberry X | wow that is worrying, thanks for sharing! yes, it often is a report from someone you know....and that is not just online biz anyway, it has always happened......
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07-28-2015
| Subscribed [VIP] | | Join Date: Jun 2015
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Activity: 0% Longevity: 51% | | Re: 'Tax Crackdown' Ebay Drop shipping? Quote:
Originally Posted by whiteberry I had a tax issue last year, fortunately (for me) I was declaring everything - someone must have gotten a little jealous as my accountant couldn't understand how they had received such information. Anyway, they go through all bank/savings accounts for selected periods of time - they want all ebay/paypal/Amazon details too!
It was a horrible time - and that was with me declaring and paying tax. Everything was finalised early this year with nothing to pay and a thanks for corresponding letter.
Please seek advice from an accountant, it really isn't worth the stress/worry.
Whiteberry X | You said they wanted Ebay details, how did you provide the details if you were stealth?
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