amazon uk and tax

[identity_crisis]

Im going to sort out a new amazon account in a couple of weeks and have a couple of questions. Ive got a couple of family members who are willing to setup an account for me. Different surnames and address obviously but just struggling to figure out how to sort the tax issue.

Ive already got a limited company but cant use it as its been used on amazon before and after speaking to my accountant setting up another limited company is a no go as it can be seen as avoiding vat by running 2 different companys and keeping them below the vat threshold.

If I just set it up as a sole trader account and use my old utr number from when I was a sole trader would this work? I can then just get the money paid into a new account and transfer it straight over to the limited company bank account and declare it through that as normal.

Obviously the amazon account wont be in my name but the bank account used for dibursement will.

Anyone see any issues with this?

Also does it have to be a business account? I have a personal bank account I could use that hasnt been used on amazon and just make sure every penny get transfered straight into my limited account, or can amazon tell if your account is a business account or not?

[Taking The Micky]

Firstly, if you set up a new amazon account in the UK at some stage you will have to provide ID, either for the sole trader or directors of a limited company.

You can set up another limited company and use your family members as the director and secretary. This way its not associated to you. The limited liability of the company will take all financial risk away from your relatives. i.e. no tax liability.

Open a bank account for this new company for the disbursements. Once the disbursements arrive transfer them to your original company. Maybe charge a 5% handling charge between the old and new company for the disbursements. The new company will have little profit and will be able to file and produce the accounts yourself as this will be classed a a small company.

Talk it over with your accountant.

[fantomas0405]

For ltd company you will need a business bank account thats for sure and most likely amazon will ask you sooner or later bank statement that proves the account under the same name as the business
However this is a question i also have...is there any major difference between personal and business bank accounts other than the first one is under the name of a person and the second under the name of a business? In other words can a personal account be used with mismatching name (name bank account "john smith" but receive payments under "Silvertrend Ltd") and later get "creative" when the need for a bank statement arises? Do bank statements between personal and business accounts look similar?

[identity_crisis]

My brother in law said he was happdy to set up a limited company. Its just then having to trsansfer the money over without issues with the inland revenue. Im happy to declare everything but just need to find the best way to do it without it causing any issues for my family.

I suppose I could just like you say pay the other limited company small percentage of profit so if the inland revenue do ask questions im effectively paying the company commision for selling through there amazon account.

The other side of it is if it ends up affecting there tax bracket. Need to have abit more of a think.

[JamesNorth101]

Originally Posted by identity_crisis

My brother in law said he was happdy to set up a limited company. Its just then having to trsansfer the money over without issues with the inland revenue. Im happy to declare everything but just need to find the best way to do it without it causing any issues for my family.

That is really something you will need to talk to an accountant about

If the company goes over the VAT threshold is all gets a bit more complicated. It can also get pretty expensive having to get accounts done for 2 lots of companies

Having said that it is a very good way to get back to selling

[identity_crisis]

Yes I thought of ther vat issue. Thats why I would prefer to just have the money come to my account and just run it through my books but sounds like that isnt an option

[identity_crisis]

If you were to set up as a soletrader would amazon want to see bank statements?

Still trying to get my head around the best way to set things up. I know amazon cant look up UTR's so seems if an account is sole trader I could use a UTR and have the money transferred to an account in my name and just transfer it all to my limited bank account and run it through the books with all my other income.