EBay tax (UK)

[Delta1]

Hi all and Happy New Year. I’m sure you’re all aware about the news about HMRC forcing platforms to provide info on seller’s trading activity in the UK. I’m looking at registering for self assessment and paying whatever tax is due for the past year ( I was thinking about doing it anyway prior to the news due to sales picking up the past year).

Does anyone here use any software / websites to make the process simpler or have any tips? (Not expecting full-on accountant advice or anything).

Anyone done it recently? I’m worried I might make a mess of it and they ask me for more info etc.

I found this site that looks interesting.
gosimpletax.com. Reviews seem good. Not sure if anyone uses anything similar.

My eBay account is not Stealth (anymore). Was banned many years ago. Created a stealth account 11 years ago reading around this forum. Details gradually changed to real details with no problems over time.

Thanks in advance.

[Freakzilla]

Hello There,

Did you change your details after the Managed Payments verification?

You need to contact HMRC and register. Your turnover will dictate the rest.

Originally Posted by Delta1

Hi all and Happy New Year. I’m sure you’re all aware about the news about HMRC forcing platforms to provide info on seller’s trading activity in the UK. I’m looking at registering for self assessment and paying whatever tax is due for the past year ( I was thinking about doing it anyway prior to the news due to sales picking up the past year).

Does anyone here use any software / websites to make the process simpler or have any tips? (Not expecting full-on accountant advice or anything).

Anyone done it recently? I’m worried I might make a mess of it and they ask me for more info etc.

I found this site that looks interesting.
gosimpletax.com. Reviews seem good. Not sure if anyone uses anything similar.

My eBay account is not Stealth (anymore). Was banned many years ago. Created a stealth account 11 years ago reading around this forum. Details gradually changed to real details with no problems over time.

Thanks in advance.

[Delta1]

Yes, I believe it would have been at the time of the MP change. They said my name had to match the name on my bank account which forced me to change details anyway. Name on the account was a shortened and slightly misspelt last name. Contact details, I gradually updated around the same time but not all at once.

You need to contact HMRC and register. Your turnover will dictate the rest.

I think I can just register on their site without ringing them. My turnover will most certainly make me liable for paying some tax (lower rate), which is fine. £1K threshold is a joke. I believe I can export everything from eBay and then have fun with figuring out what I made / lost from each item.

Tricky bit is working out the profit / expenses (surely, you only get taxed on profit?). I've also got some personal items mixed in with the sales which I'm guessing I can leave out?

Might be impossible to figure out all other expenses this time round so probably take a hit on that until next time.

Do I just get figures up to 6th April? Thanks.

[Freakzilla]

The personal allowance threshold is £12,570, but I believe you have to register if you turn over £1000 or more a year. I would do a lot of research if I was you.

The DAC7 reporting only started on 1st January. They will send the info to HMRC at the end of January last year for all of 2024.

[Delta1]

Originally Posted by Freakzilla

The personal allowance threshold is £12,570, but I believe you have to register if you turn over £1000 or more a year. I would do a lot of research if I was you.

Hi!

£12,570 threshold yes, but I have a day job so way above that already.

Turnover over £1000, yes. That's what I'm trying to figure out now. What to research and how to just get it done.

Sorry, what is DAC7?

[degsey69]

The turnover is not £1,000, it’s the profit from the turnover you declare as a self employed seller on eBay.

Let’s just say you bought 10 iPads for £80 each and retailed them out at £135 including free shipping. Out of this £135 you need to take eBay fees of about £20.25 and any advertising fees, also you need to take out £5 shipping and packing.

This will net you £109.75, a £29.75 profit., so to qualify that you report your sales as a trader you have to sell over 31 units with a gross sales figure of over £4000.

On top of this you have taxable deductions such as a your mobile phone, heating light and rent of an office in your home to work in, any capital assets such as a car you can claim depreciation if used in the business. If you buy new capital assets such as a new computer it can all be deducted from your tax bill.

A good program to do this like quite books etc and a good cerifified or chartered account will insure you will conform to HMRC and make some good profit with a minimal tax bill.

Once you go over £85,000 then it a new ball game with VAT registration.

One big benefit if you register as a trader from a personal account is that the selling limits will increase, the only drawer back is you loose a little bit of protection from buyers when the account is converted to a business one.

[Delta1]

Hi. Thanks for the info, much appreciated!

A good program to do this like quite books etc

I assume you mean Quick Books? I know of it. I'm not sure I sell enough to justify paying for an accountant yet.

Nowhere near £85K and don't forsee myself getting anywhere near that anyway.

The deductions are confusing / complicated. Car usage and stuff is tricky as I mostly use it for personal use so only occasional trips to the post office. Hard to work out mileage etc as I sometimes grouped the trip with other errands. I don't have a dedicated phone / computer for this. Just use what I already have available so maybe no need to bother with these deductions for now unless I decide to buy new kit just for this?

[maria2024]

Hello everyone,

Firstly, I hope you're all having a wonderful start to the New Year! I'm reaching out with a query that I hope some of you might be able to shed light on.

Recently, due to the implementation of new regulations, I ceased my eBay selling activities, as I was previously using a friend's details and I don't want to risk any complications for him.

I've come across a situation where eBay seems to restrict the creation of Limited company accounts for non-UK residents, and I'm considering a potential solution. My plan is to establish a Limited company with both myself and my friend as directors. I would then update my eBay account to reflect this new business structure. After about a month, I am thinking of removing my friend as a director from the company.

My question is, would this action create any issues with eBay or HMRC? I'm also curious if this strategy could be applicable for those using stealth accounts. Once the UK resident is no longer part of the Limited company, I intend to manage tax obligations directly with HMRC under the company's name. However, I'm unsure if this would lead to any complications.

Any insights or experiences you can share on this matter would be greatly appreciated!

[rsot]

Originally Posted by maria2024

Hello everyone,

Firstly, I hope you're all having a wonderful start to the New Year! I'm reaching out with a query that I hope some of you might be able to shed light on.

Recently, due to the implementation of new regulations, I ceased my eBay selling activities, as I was previously using a friend's details and I don't want to risk any complications for him.

I've come across a situation where eBay seems to restrict the creation of Limited company accounts for non-UK residents, and I'm considering a potential solution. My plan is to establish a Limited company with both myself and my friend as directors. I would then update my eBay account to reflect this new business structure. After about a month, I am thinking of removing my friend as a director from the company.

My question is, would this action create any issues with eBay or HMRC? I'm also curious if this strategy could be applicable for those using stealth accounts. Once the UK resident is no longer part of the Limited company, I intend to manage tax obligations directly with HMRC under the company's name. However, I'm unsure if this would lead to any complications.

Any insights or experiences you can share on this matter would be greatly appreciated!

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

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[degsey69]

Originally Posted by maria2024

Hello everyone,

Firstly, I hope you're all having a wonderful start to the New Year! I'm reaching out with a query that I hope some of you might be able to shed light on.

Recently, due to the implementation of new regulations, I ceased my eBay selling activities, as I was previously using a friend's details and I don't want to risk any complications for him.

I've come across a situation where eBay seems to restrict the creation of Limited company accounts for non-UK residents, and I'm considering a potential solution. My plan is to establish a Limited company with both myself and my friend as directors. I would then update my eBay account to reflect this new business structure. After about a month, I am thinking of removing my friend as a director from the company.

My question is, would this action create any issues with eBay or HMRC? I'm also curious if this strategy could be applicable for those using stealth accounts. Once the UK resident is no longer part of the Limited company, I intend to manage tax obligations directly with HMRC under the company's name. However, I'm unsure if this would lead to any complications.

Any insights or experiences you can share on this matter would be greatly appreciated!

You could leave your friend on as a director without shares and unremunerated, the company has to report to HMRC to pay its taxes and a good account should steer you around the obstacles and not create a tax liability for your friend and allow you to pay the taxes. This way eBay is satisfied the account has a UK citizen in the company.

[maria2024]

Thank you degsey69 for your reply. Woud it be ok if the director is removed totally or will it cause issues?

[Delta1]

Hi again.

When should I say I started 'trading'?

"When did you start working for yourself or when did your trading allowance exemption cease?"

I've definitely start way before but the current deadline is for 2022-2023. If I give them an earlier date than Jan 2022, would that land me a fine and cause other issues for not registering earlier? Hmm..

The automatic data they get is only from 1st Jan 2024 but I'm aware they can dig much further back should they want to, if I'm unlucky.

edit: Some things I read online say I should have registered within 5 weeks of trading (long gone) but hmrc supposedly more lenient if within a year.


This is interesting. Some responses from qualified Finance professionals

https://www.justanswer.co.uk/finance...-so-think.html

[degsey69]

Originally Posted by maria2024

Thank you degsey69 for your reply. Woud it be ok if the director is removed totally or will it cause issues?

I would leave the friend on as a non remunerated director without shares so they have no tax liability.