Abandon old accounts without NI and start fresh question

[metatrade]

Hello Peeps,
I wonder if I could pick the brains of the more experienced here,

I have 3 non stealth accounts registered with my correct details, all requesting N.I. I'm considering changing the registered address then leaving them dormant in the hopes ebay don't forward sales info on to hmrc as they won't have N.I. and are no longer selling.

I'm then considering 2 options.

Option 1:
Create 3 new non stealth accounts but with using new bank accounts, new address and new number - I could add a new middle nickname, misspell my surname or make a mistake with DOB by 1 digit therefore still remain non stealth, then add real N.I. when requested
eBay could of course link the new accounts with the dormant accounts using IP and other means but I'm hoping that with the dormant accounts not having N.I,
they won't bother and will only forward the sales data of the new accounts when they hit the limit and I add N.I.

Option 2:
I have some non stealth accounts which I've only used to buy with in order to gain feedback. The benefit is that these accounts are older and already have a good feedback record. The downside is that the registered info is the same used on the dormant accounts which are now asking for N.I.
I'm hoping that changing the registered address and phone number before selling on them may prevent ebay from also forwarding the data from the dormant accounts.

Put simply:
Change address on the accounts asking for N.I then leave dormant in the hopes they don't forward info

Then:
Create new non stealth accounts with new address, phone #, misspelt surname or mistyped DOB and later add real N.I

Or:
Use old non stealth buyer accounts to sell on - But change registered address & pnone # as it is same as used on the now dormant accounts requesting N.I.

Of course I'd prefer to sell with the older buying accounts as they have buying history but if that will trigger eBay to forward the info from the dormant accounts too, because they originally had the same registered details, which were changed before selling, then I'd be better starting new accounts.

Thoughts please?

TIA

[agent006140]

"I spent most of my money on wine women and song. The rest I just squandered"
---
Instead of spending your money on women and song,why not give some to your government?thats what a patriotic citizen would do.

[murdered_by_ebay]

if you are below the VAT threshold you can continue using your existing accounts

if you are above the VAT threshold stealth accounts do not offer any meaningful protection if the money goes to your bank

[agent006140]

Before Ebay came up with Adyen/MP payment,it was Paypal and one can keep the sales proceeds in his Paypal account and spend it with a Paypal debit card.

[murdered_by_ebay]

agent , your texts remind me of a classical joke:

mice go to the wise owl complaining that they are hunted down and killed by eagles , asking for advice. the owl tells them that the problem can easily solved , they just need to become hedgehogs and eagles will not be hunting them anymore

the mice go back home and half way back they decide to return to the wise owl asking how they can turn into hedgehogs

the owl answers: guys , I only do strategy , tactic is on you

[rsot]

Could run Option 2:

Option 2:
I have some non stealth accounts which I've only used to buy with in order to gain feedback. The benefit is that these accounts are older and already have a good feedback record. The downside is that the registered info is the same used on the dormant accounts which are now asking for N.I.
I'm hoping that changing the registered address and phone number before selling on them may prevent ebay from also forwarding the data from the dormant accounts.

Change the address using non-related IP - bid/browse/buy some more then try a seller change

[metatrade]

Originally Posted by murdered_by_ebay

if you are below the VAT threshold you can continue using your existing accounts

if you are above the VAT threshold stealth accounts do not offer any meaningful protection if the money goes to your bank

I'm way below the VAT threshold, In fact my profits are just below my personal tax-free income allowance, therefore I have no tax to pay. What I'm concerned about is that I don't have receipts to show what the goods I sold cost so it's impossible to show exactly what the profits were.
I heard (from an accountant) that without providing them with records of receipts of what the goods cost, they may tell me my turnover was 100% profit and tell me to pay tax based on that.

My other concern is that they may want me to send them self assessments for the past 5-10 years? Which would be a masively difficult task because of the time period and lack of receipts for the goods sold. They may then want to impose fines for sending in those self assessments late

That's why I figured it might be best to leave those acounts dormant without providing NIN then create new accounts - As though its a new business, then provide the NIN for the new accounts when requested.

Should I create new accounts even though the profits on my dormant accounts are within my personal income tax allowance - So no income tax to pay?
Or should I just provide NIN on the old accounts and run the risk of hmrc requesting receipts for the cost of the goods sold over the past 5-10 years, asking me to send self assessments for the past 5-10 years, charging penalties for those late self assessments, telling me that (without records) my turnover must have been 100% profit then taxing me as though turnover was 100% profit

What are your thoughts?

[james_112233]

Originally Posted by metatrade

I'm way below the VAT threshold, In fact my profits are just below my personal tax-free income allowance, therefore I have no tax to pay. What I'm concerned about is that I don't have receipts to show what the goods I sold cost so it's impossible to show exactly what the profits were.
I heard (from an accountant) that without providing them with records of receipts of what the goods cost, they may tell me my turnover was 100% profit and tell me to pay tax based on that.

My other concern is that they may want me to send them self assessments for the past 5-10 years? Which would be a masively difficult task because of the time period and lack of receipts for the goods sold. They may then want to impose fines for sending in those self assessments late

That's why I figured it might be best to leave those acounts dormant without providing NIN then create new accounts - As though its a new business, then provide the NIN for the new accounts when requested.

Should I create new accounts even though the profits on my dormant accounts are within my personal income tax allowance - So no income tax to pay?
Or should I just provide NIN on the old accounts and run the risk of hmrc requesting receipts for the cost of the goods sold over the past 5-10 years, asking me to send self assessments for the past 5-10 years, charging penalties for those late self assessments, telling me that (without records) my turnover must have been 100% profit then taxing me as though turnover was 100% profit

What are your thoughts?

You're over reacting.

Just do the right thing and keep receipts from today and file your taxes when the time comes. The past is the past. You made a mistake and now you're on the straight and narrow.

[murdered_by_ebay]

if you make little money it is highly unlikely you would get SUCH problems , most likely it would be 2-3 years worth of tax returns plus some fine

[metatrade]

Originally Posted by james_112233

You're over reacting.

Maybe I am over reacting?

Total profit between the accounts was about 10k, within personal tax allowance so no income tax or N.I contributions to pay either.
I'd have been better off if I'd registered for self assessment years ago as I'd have accumulated N.I credits over those years without having to actually pay any N.I.

There must be a few peeps in the forum who've been thru this same scenario?
I'd be grateful to hear about your experience with the T man so I can plan accordingly

TIA

[BeachedHead]

Originally Posted by metatrade

I'm way below the VAT threshold, In fact my profits are just below my personal tax-free income allowance, therefore I have no tax to pay. What I'm concerned about is that I don't have receipts to show what the goods I sold cost so it's impossible to show exactly what the profits were.
I heard (from an accountant) that without providing them with records of receipts of what the goods cost, they may tell me my turnover was 100% profit and tell me to pay tax based on that.

My other concern is that they may want me to send them self assessments for the past 5-10 years? Which would be a masively difficult task because of the time period and lack of receipts for the goods sold. They may then want to impose fines for sending in those self assessments late

That's why I figured it might be best to leave those acounts dormant without providing NIN then create new accounts - As though its a new business, then provide the NIN for the new accounts when requested.

Should I create new accounts even though the profits on my dormant accounts are within my personal income tax allowance - So no income tax to pay?
Or should I just provide NIN on the old accounts and run the risk of hmrc requesting receipts for the cost of the goods sold over the past 5-10 years, asking me to send self assessments for the past 5-10 years, charging penalties for those late self assessments, telling me that (without records) my turnover must have been 100% profit then taxing me as though turnover was 100% profit

What are your thoughts?

Be more concerned over turnover than profit.

HMRC are likely to look at turnover if they are investigating accounts and NI numbers that haven't submitted self assessments. Sadly, HMRC 'decide' what you owe them if they stick their claws in, and it can take you a lot of work, documentation, time and stress to even attempt to prove otherwise and even then, they often don't accept it.

What is your turnover on each account?