Forum

Tax Man & VAT Reg
 

When should i start declaring my ebay earnings to the tax man and go self employed.... Also is it worth going vat regged or is that only best if im going through around 20k in sales a month?

Curiosities

if you knew the loopholes you wudnt need to pay tax or vat ;)

HI:
Dont know about all that.. IF they want u bad enough--they have what is called
"Forensics Auditors"--they can piece together your income from little things one doesnt even think of....

A dollar saved in this case--May end up costing u $100 later on..
Just food for thought..:)

Don't mess with the Tax man... always pay what you must and deduct as much as you can, but don't try to scam them. They'll take everything from you if you do.

So if I'm just going to sell on eBay with the different accounts I will not be liable for taxes right?

So am i declaring everything i make on ebay?

Is there a time i shoudl start i mean, wait until i hit lets say £200 a day or ? start right awya?

Im not dodging anything, im playing the game by the rules.

Just wondered, when is the best time to start the game. :p When im earning a certain amount or right away basicaly.

Also can i claim back things like Packaging and Stamps on tax return?

Yes but they dont know i exist yet... This is the question, shal i register self employment now and register the biz. And start?

Modee let me rephrase my question. If I'm using bogus accounts how will I be liable for taxes? Do I apply for self employed?

Modee I don't know much about taxes. I leave the tax stuff to my accountant.

Doesn't the IRS check bank statements if they decide to audit you? How would you explain all the extra money if you don't claim it?

It's best to do you taxes correctly.

If you're making more then 5k a year with eBay... you should claim it. I'm not sure how UK is, but for the US it's something like 2-3k a year you have to claim... I'm not 100%, but yes do you taxes; it's not worth it if they audit you.

All I know is I do my taxes 100% each year, deduct as much as I can legally and I'm doing fine.

what do you deduct?

Packaging?
Postal Cost?
Petrol To The Post Office? :P

Ebay Fees?
Paypal Fees?

Everything it cost to make money online.

can you list to me, so i have an idea. Or pm me?
Only ebay related as my biz is just ebay.

Just so i have an idea thats all bud.

Well, shipping cost, package supplies, computer if you use it 100% for eBay, any new office material, if you work from home then your office space, bottle water, advertising cost, etc. I would even keep receipts of gas cost when you go to send packages.

sorted.
What about ebay and paypal fees? can you get that back?

You can claim it I'm sure. But you won't get 100% of it back, maybe something like 50%.

okily dokily suits me.

Maybe I should re-phrase myself about the "loopholes", I believe in the UK you have the right not to pay VAT for up to a turnover of £55,000 (however it may be more now because they changed the law I believe). All you need to do is go below this and then you dont need to pay any VAT what so ever. I am not sure how it works in USA or any other countries.
As for the tax man thats different and I believe if you are a business in the UK the first tax year is tax free however the year after you need to pay it, its all legal I just know it works in the UK not sure about other countries.
As for the eBay fees if you are VAT registered (which is over £55k a year) you can claim a % of the VAT back from eBay, all of the expensives you can claim that back as well, Fuel costs (to the post office and etc), this can be all claimed back, im no accountant but I know these little tricks and they are perfectly legal. google it.

64,000 quid nowadays. The most realistic way to get benefit is for any user here to discuss this with an accountant. There is SO much that can be claimed, that can not be claimed, expert advice is needed.
Another example is the fact that if a person is self employed, HMR&C
must be told within 3 months of registering or possibly be penalised.
This is also not paying any attention to all the other contributions
needed under current UK laws.

This is a excellent question, I wud love to hear a response...

Too much money, no taxes= Federal offence in any country. Solution see an accountant.

I highly suggest talking to your accountant about this type of stuff. They will be able to answer all of your questions. They are just a phone call away too. Unless you are all doing taxes yourself, then I suggest finding an accountant if you aren't one. So much easier when you have someone else doing it for you. Unless you have the time to go back to school and study accounting or something along those lines.

I just file buyer receipts with sum equalling the deposits to the bank account. So, let's say:

1) I deposited 500$ worth of ⊗⊗⊗⊗ ebay account generated profit in April to my (real, naturally) bank account.

2) I file a 127$ receipt to John Smith, 140$ to Sara Spears and 233$ to Jeorge Connor, total 500$. Each dated a various day of April.

3) I pay my taxes end of year. VAT exempt sole proprietorship is not that hard to do accounting for.

Now if they audit and questions arise I have a documented proof of tax declaration. The bank statement shows up deposits with sum matching that of the receipts for April. I don't know about the US but in my country there is a mere fraction of the possibility the IRS will ever look into verifying the details on those receipts such as name, address etc.

Also it is possible in here to file a receipt for a "general customer", not sure the translation is entirely correct but that just means there is no name and customer details on the receipt.

Hope that helps.;)

What country are you in klonex? Here in the U.S. most of the time they just look into the situation if you are making a lot of money. They usually don't come after the little guys. Just don't try to screw over the government because one day they will come looking for ya. Especially because the U.S. has like over 7 Trillion in debt now!

Israel. The thing is, they want you to pay for what you earned AND show them everything you earned, period. It is less important to them where did you get that money from, unless it is serious sums like over 100k a month (Actually over 65k NIS here) because might really seem like money laundering.

Ironically, this causes me to always try to pay for everything via PayPal since I want to reduce the withdrawal amount to the bank :rolleyes: