What can be done when your stealth account reaches vat threshold

[Tgs]

Hi there

Im running a few stealth accounts with no problems yet, i have passed the eu limits and other verifications with them all good so far limits all increase there selfs and they all have reached top seller which is good, im just wondering whats the next hurdle ill face or even what hurdle cant be passed? i was thinking the vat next? what do you do? stop the account selling just before you reach it? i believe they start wanting vat details around 65k saying your close to it. or is there any way to go forward and keep selling ? if not then all accounts can only sell around this sum per year.

Is it possible to get vat details ?

Thank Guys i appreciate any answers in advance.

[backamblock]

as far as i read it here on the forums and from the UK account sellers, you should stay below 70k per accounts.

i stay below or around 30k per account to go sure and not loose too much work if they suspend one again, but i experiment a lot with different tactics and higher risk items, so i loose a lot of them anyway

it should be pretty easy to calculate and limit the average monthly sales when you have consistent average item prices and consistent live listings per month.

from my reading, It is known as best practise here in the forums mind to not sell 9months to 70k and then dont sell at all for 3 months, but rather lower the monthly sales volume so you have consistent sales the entire year

Keep in mind that you COULD possibly loose that account every second.. so don't invest too much time in each

[as_tom]

Ok, but this works only for eBay purposes...

Let's say you are managing 7 stealth accounts, each of them are below VAT threshold, let's say 70k

So in total you have 7 * 70k = 490 000 GBP

I guess the money goes into your bank account, so your total TURNOVER is 490000 GBP which much more than the VAT threshold.

If you make your TAX return and you put 490000 GBP to pay the Income Tax, HMRC will ask you, why haven't you been registered for VAT. What then?

[Pandoras_box]

Originally Posted by as_tom

Ok, but this works only for eBay purposes...

Let's say you are managing 7 stealth accounts, each of them are below VAT threshold, let's say 70k

So in total you have 7 * 70k = 490 000 GBP

I guess the money goes into your bank account, so your total TURNOVER is 490000 GBP which much more than the VAT threshold.

If you make your TAX return and you put 490000 GBP to pay the Income Tax, HMRC will ask you, why haven't you been registered for VAT. What then?

eBay /PayPal policies aren't laws so we can circumvent them. However, it is a different story with the government. You should register for VAT as soon as you reach (or know that you'd reach) the threshold. You'd be subject to a range of penalties if you don't.

[rsot]

Originally Posted by as_tom

If you make your TAX return and you put 490000 GBP to pay the Income Tax, HMRC will ask you, why haven't you been registered for VAT. What then?

Maybe ask a financial professional for advice?

[backamblock]

Originally Posted by rsot

Maybe ask a financial professional for advice?

+1
you will have to pay taxes as soon as you want to receive and also USE that money in real life... there is just no way around it that would be worth the hassle and risk you'd have to take (jail time)

[quizer]

Originally Posted by as_tom

Ok, but this works only for eBay purposes...

Let's say you are managing 7 stealth accounts, each of them are below VAT threshold, let's say 70k

So in total you have 7 * 70k = 490 000 GBP

I guess the money goes into your bank account, so your total TURNOVER is 490000 GBP which much more than the VAT threshold.

If you make your TAX return and you put 490000 GBP to pay the Income Tax, HMRC will ask you, why haven't you been registered for VAT. What then?

What if you never withdraw the money ,but continued using the money to make purchases of stock or bitcoin.
Would government still see it?
I guess another way of asking is...does the UK government get PayPal balances sent to them or have access to PayPal,is this something they check or is it simply the bank account where the money lands ?

[WB1976]

I got a VAT just to be on the safe side of the law.

[JamesNorth101]

Originally Posted by quizer

What if you never withdraw the money ,but continued using the money to make purchases of stock or bitcoin.
Would government still see it?
I guess another way of asking is...does the UK government get PayPal balances sent to them or have access to PayPal,is this something they check or is it simply the bank account where the money lands ?

HMRC can request details from PayPal