eBay Tax Questions (UK)

[Beyondthet]

I want to pay taxes in the UK from all my stealth accounts. I will consult an accountant but I need some advice to start because all this is new to me.

My eBay business plan is to keep accounts individual - and spread volume over several stealth accounts. I don't plan to become a top seller because my methods work better for individual accounts (auctions > BIN, actual inventory pics > generic pics, 1 day auctions guaranteed sales, variety of items and niches including random stuff I have at home)

Questions:

1) Should I pay my taxes as a business (LLC) or as a sole trader?

2) Do I need a business bank account to purchase of supplier goods and PP withdrawals (modestly large sums of money)?

3) I am already registered as a sole trader for my day job. Does HMRC require me to register again for other endeavours I am ongoing e.g. e-commerce, or can I combine my eBay taxes with my day job taxes under the same UTR number?

Maybe I am overthinking this but honestly it is all new to me. Thanks.

[JackFrost]

Any news with this mate? similar issue with me.

[Pandoras_box]

Originally Posted by Beyondthet

I want to pay taxes in the UK from all my stealth accounts. I will consult an accountant but I need some advice to start because all this is new to me.

My eBay business plan is to keep accounts individual - and spread volume over several stealth accounts. I don't plan to become a top seller because my methods work better for individual accounts (auctions > BIN, actual inventory pics > generic pics, 1 day auctions guaranteed sales, variety of items and niches including random stuff I have at home)

Originally Posted by Beyondthet

Questions:

1) Should I pay my taxes as a business (LLC) or as a sole trader?

You should factor in
1. How much you earn altogether from eBay.
2. If you really want to take advantage of tax savings that are unavailable to you as a sole trader and
3. If you think there'll come a time when you'd go over the VAT threshold.

When it comes to taxes, if your accountant can take a look at your business and guarantee to save you more money if you go LTD, then you should go for it.

Originally Posted by Beyondthet

2) Do I need a business bank account to purchase of supplier goods and PP withdrawals (modestly large sums of money)?

You don't need a business bank account to purchase supplier goods in most cases, neither does your accountant or HMRC.
In your case, it's only the banks that want you to have one so that they can make some money off you...

Long story short: Get 1 business account, but all your stealth Paypal accounts should be connected to savings accounts that eventually move money to your business account. Business account preferably domiciled at a different bank.

Originally Posted by Beyondthet

3) I am already registered as a sole trader for my day job. Does HMRC require me to register again for other endeavours I am ongoing e.g. e-commerce, or can I combine my eBay taxes with my day job taxes under the same UTR number?

I do not think you need to notify HMRC again. As you're already a sole trader, you must have notified them in the past, gotten a UTR and now pay your own taxes and NI.
You do not need a new UTR number either.
However, if you register a company be aware that the company may get its own UTR number. Please check this with an accountant as I could be wrong. Check if there may be boxes to tic within your HMRC online account.

Originally Posted by Beyondthet

Maybe I am overthinking this but honestly it is all new to me. Thanks.

[james_112233]

Yes, to keep it neat and tidy for yourself and your accountant transfer all the business income from the savings you have attached to your stealth paypals into your business bank account that the accountant will be handling.

If you lose stealths as you go along it won't affect your business bank account as that isn't linked to any stealth paypals.

It will be easier if you go LTD.

If you are already a sole trader for your day job your ebay income and your day job income can easily make you go over the VAT threshold in the uk. But if your ebay becomes a seperate business by going LTD you will start from 0 and your other source of income will be processed via your self assessment.

So basically you can hit 85k before becoming VAT registered in your day job. And 85k from ebay before becoming VAT registered. But if you don't make one of them LTD both of them count as one so you will hit 85k quicker.

Speak to your accountant though ... they will tell you the best option.

[rsot]

Welcome to the forum - all the best as you master stealth

Good luck OP - financial advice in order

[dhc]

can pm me if want to link up with a pro uk accountant, doing himself stealth and dropship on ebay

[bannana597]

Originally Posted by dhc

can pm me if want to link up with a pro uk accountant, doing himself stealth and dropship on ebay

Hi would be great to get the link up mate if possible?
I'm in the same situation as the OP
can't pm you because haven't done 25 posts haha

[rsot]

Originally Posted by bannana597

Hi would be great to get the link up mate if possible?
I'm in the same situation as the OP
can't pm you because haven't done 25 posts haha

dhc hasn't been seen in over a year though...