Stealth vs HMRC

[Dad]

Hi guys, I'm on my way to get stealth, I've read Stealth Book and I'll probably do this again and again.
Learning something new every day, I want to be sure that I'll not make any stupid mistakes.
But there are still some things that I don't understand and I'll appreciate if you share with me your experiences and thoughts.
Do you guys paying taxes?
Let's say I'm operating 5 eb/pp £1500 on my bank account, +£1500 from my full time job. Will hmrc find out that I'm getting more than I paying taxes for?
Or let's say I'm not working full-time and getting £2k every month from ebay?
Do they even can check my bank account, if yes when ?
Can I just pay taxes for ebay income and sleep well, even if all these accounts are registered not on my name?
These are questions I couldn't find answers to. Thanks guys

[JamesNorth101]

You just pay taxes on the profits you make like any other account.

Combine all profits into a single place, pay tax on it. Accountants can give you a lot more detail about it

[Dad]

Originally Posted by JamesNorth101

You just pay taxes on the profits you make like any other account.

Combine all profits into a single place, pay tax on it. Accountants can give you a lot more detail about it

Could you explain on it please, I'm not sure I get it right

[JamesNorth101]

You pay tax on any income that you earn

[Dad]

Originally Posted by JamesNorth101

You pay tax on any income that you earn

Ok, What about transfers from all these different paypals, Is it not a problem? will hmrc don't ask for anything as long as they have taxes from me ?

[JamesNorth101]

They dont really care where it comes from so long as they get their cut

[Dad]

Originally Posted by JamesNorth101

They dont really care where it comes from so long as they get their cut

Ok thanks, what about company? Is there any income threshold when I should open company for selling legally on eBay? Thanks for your advices mate

[JamesNorth101]

No legal limit, but it does make sense at a certain point

Need to go over that with an accountant though

[Dad]

Thanks, I Will get and ask accountant but I just wanted to shed some light on this topic, as I don't want to ask accountant questions like '' bro I'm selling stuff on random people names, should I pay taxes or what?? ''

Anyway if someone else has any experiences and thoughts please share them with me.

[JamesNorth101]

It doesnt really matter that you are using 10 accounts. Just pretend you are using 1 under your own name and pay taxes accordingly

Originally Posted by Dad

Thanks, I Will get and ask accountant but I just wanted to shed some light on this topic, as I don't want to ask accountant questions like '' bro I'm selling stuff on random people names, should I pay taxes or what?? ''

Anyway if someone else has any experiences and thoughts please share them with me.

Probs best to fudge the truth a little, They won't like the fact you have soo many PayPal accounts all taking in money. As long as you pay your taxes its fine, but your accountant won't like the set up.

[mich74]

We use quickbooks which allows our accontants to access our bank accounts where various business receipts are paid into.
They use that for income & we supply them with a summary of our Ebay, Amazon & website sales & charges & expenses.
They calculate our VAT & End of Year taxes & tell us what to pay.
We don't give them the names of the various eBay/PayPal accounts - just the monthly summaries of each one.

[JamesNorth101]

^That is pretty much the best set up and the way a lot of people with several accounts will run them

[Dad]

Ok thanks, I'm assuming things start getting complicated when you need to start company, am i right?

[rsot]

Originally Posted by JamesNorth101

^That is pretty much the best set up and the way a lot of people with several accounts will run them

You are the accountant is what the OP wants to hear

[tonytucker77]

Originally Posted by JamesNorth101

They dont really care where it comes from so long as they get their cut

Agreed. Spoken like a true Brit

[Dad]

So, to clarify. I'm selling, keeping track of all my ebay transactions from all my accounts.
Declare and pay all income taxes from all my bank accounts. Then I'm automatically registered as a self employed sole trader , right? And that's it? Sleeping well? :>

[Dad]

sorry guys im keeps asking but i want to be 100% sure with everything :

i found article says :
"The 2016 Finance Act granted the HMRC new powers to collect detailed information from eBay on sellers that it believes are failing to declare income. In addition to personal details like national insurance numbers, HMRC will be able to obtain bank account details, as well as the value and volume of any transactions that have been made.[...]While previously, HMRC could only request details if it suspected deliberate tax evasion, officials no longer need any evidence of wrongdoing to request data, nor do they need to ask an individual’s permission first."

so what if they found one of my stealth account with attached bank acc. registered on my name? is that will cause any problem even if i paying taxes ?
or am i just picking holes in it ?

[JamesNorth101]

You have 10 acccounts

You earn £10k on each account

You pay tax as if you earn £100k.

Super simple

For tax purposes you just do your accounts as if you have a single account

[Ill Be Back]

Originally Posted by JamesNorth101

You have 10 acccounts

You earn £10k on each account

You pay tax as if you earn £100k.

Super simple

For tax purposes you just do your accounts as if you have a single account

Hi James,

A little controversial but this happens in the real world all the time and I'm sure most online sellers are doing the same. What is your stance on not declaring every single stealth store that you own

[Ebayorbust]

Sounds like someone is looking for a wee pat on the back and told that they'll be fine and not to worry about it.

[james_112233]

Don't declare anything. And don't go to an accountant. I mean what's the point ?

But when you get caught by HMRC, lube up for them and the boys in the booty house.