What date do paypal start working out your VAT threshold from is it the 1st of Jan or

[Bradd]

What date do paypal start working out your VAT threshold from is it the 1st of Jan or April

[james_112233]

Paypal ?

Do you mean ebay ?

Ebay do it on a 12 months rolling basis.

[Bradd]

Oh sorry is it ebay then ..What do you mean rolling basis ? i know its what you earn in 12 months but wen does it start lets say youv had your account from 2 years and the first years and second you earned 20k in total But this year since jan things pick up a lot

[james_112233]

It's simple.

If you want to find out how much you have sold in the last 12 months on ebay up to TODAYS date, you just use the seller tools in paypal or ebay for the last 12 months and calculate your total sales. Whatever that is it will tell you whether you are nearly reaching the UK's 85k VAT threshold. If you are approaching it then you need to become VAT registered by law.

You can circumvent this by creating multiple stealth accounts on ebay ... but i'd be worried about under declaring and dodging the tax man because unlike ebay and paypal who will simply suspend you and slap you on the wrist, the tax man will freeze your assets and you'll be standing in court facing hefty fines and/or a prison sentence.

[Ill Be Back]

Originally Posted by james_112233

It's simple.

If you want to find out how much you have sold in the last 12 months on ebay up to TODAYS date, you just use the seller tools in paypal or ebay for the last 12 months and calculate your total sales. Whatever that is it will tell you whether you are nearly reaching the UK's 85k VAT threshold. If you are approaching it then you need to become VAT registered by law.

You can circumvent this by creating multiple stealth accounts on ebay ... but i'd be worried about under declaring and dodging the tax man because unlike ebay and paypal who will simply suspend you and slap you on the wrist, the tax man will freeze your assets and you'll be standing in court facing hefty fines and/or a prison sentence.

Hi James, not sure if you can go into more detail but Tax is something that I am not so clued up on especially when it comes to stealth. How does one declare tax from eBay sales when the stealth stores are under different names? Do you have a legitimate eBay store running alongside stealth and only declare your legit store? Also how does someone get caught under declaring tax if stealth is supposed to be off the books and under the radar?

Thanks

[Ebayorbust]

Originally Posted by Ill Be Back

Hi James, not sure if you can go into more detail but Tax is something that I am not so clued up on especially when it comes to stealth. How does one declare tax from eBay sales when the stealth stores are under different names? Do you have a legitimate eBay store running alongside stealth and only declare your legit store? Also how does someone get caught under declaring tax if stealth is supposed to be off the books and under the radar?

Thanks

What are you doing regarding tax at the moment?

[james_112233]

Originally Posted by Ill Be Back

Hi James, not sure if you can go into more detail but Tax is something that I am not so clued up on especially when it comes to stealth. How does one declare tax from eBay sales when the stealth stores are under different names? Do you have a legitimate eBay store running alongside stealth and only declare your legit store? Also how does someone get caught under declaring tax if stealth is supposed to be off the books and under the radar?

Thanks

Stealth is not off the books or under the radar ... That's not how i'm using it. I have an actual registered LTD business.

The money comes in to a bank account YOU OWN. The stealth aspect is only to fool ebay and paypal in to allowing you to sell on their platform - that's it.

What ever money comes in to your bank account you should be declaring it in your tax returns.

Your accountant / HMRC will only want to know where the money has come from. So you should keep records, even simple excel spreadsheet records of how much you bought your goods for, followed by the receipt for it. And how much you sold your goods for, followed by the paypal sales receipt for it. And records for any expenses i.e. postal costs, ebay fees.

The paypal sales receipt doesn't show your stealth name or address ... just your customers details.

That is enough for your accountant as long as all the numbers add up coming in to your bank.

Join the UK Business Forums for advice on record keeping etc.

And getting caught by HMRC isn't a question of "how" ... but more of "when". They investigate people by random, through your neighbor reporting you and through other means.

[Ill Be Back]

Originally Posted by Ebayorbust

What are you doing regarding tax at the moment?

I'll be completely honest and say that I've only just last year registered with HMRC. Basically registered as a starting business and I have one legit eBay store with my actual details. I plan on just using that account to declare my income. With this store I have one business bank account which I spend money on stock with (tied to PayPal and a Lloyds personal card which I transfer my money to for wages direct debits etc.

Do you have any advice for me as I don't really know the in's and outs of self employment. Before this I was working full time alongside the stealth's but now I am doing this full time.

Thanks

[james_112233]

Originally Posted by Ill Be Back

I'll be completely honest and say that I've only just last year registered with HMRC. Basically registered as a starting business and I have one legit eBay store with my actual details. I plan on just using that account to declare my income. With this store I have one business bank account which I spend money on stock with (tied to PayPal and a Lloyds personal card which I transfer my money to for wages direct debits etc.

Do you have any advice for me as I don't really know the in's and outs of self employment. Before this I was working full time alongside the stealth's but now I am doing this full time.

Thanks

Why not spend money on an accountant ? they will keep everything in order and their cost comes out of your tax bill. So it's win/win.

[Ill Be Back]

Originally Posted by james_112233

Stealth is not off the books or under the radar ... That's not how i'm using it. I have an actual registered LTD business.

The money comes in to a bank account YOU OWN. The stealth aspect is only to fool ebay and paypal in to allowing you to sell on their platform - that's it.

What ever money comes in to your bank account you should be declaring it in your tax returns.

Your accountant / HMRC will only want to know where the money has come from. So you should keep records, even simple excel spreadsheet records of how much you bought your goods for, followed by the receipt for it. And how much you sold your goods for, followed by the paypal sales receipt for it. And records for any expenses i.e. postal costs, ebay fees.

The paypal sales receipt doesn't show your stealth name or address ... just your customers details.

That is enough for your accountant as long as all the numbers add up coming in to your bank.

Join the UK Business Forums for advice on record keeping etc.

And getting caught by HMRC isn't a question of "how" ... but more of "when". They investigate people by random, through your neighbor reporting you and through other means.

Thanks James for the information, I always thought that the PayPal receipt shows mismatched information. So far I haven't done any spreadsheets. Just kept a copy of all my spending receipts and sales so I'll make sure to do this.

With your advice does this apply even with multiple stealth stores with multiple bank accounts? Can HMRC check into every single bank account that I have?

[Ill Be Back]

Originally Posted by james_112233

Why not spend money on an accountant ? they will keep everything in order and their cost comes out of your tax bill. So it's win/win.

I definitely plan on getting an accountant. As of right now I've only just started making money through my legit store a few weeks ago so tried to manage it myself.

[james_112233]

Originally Posted by Ill Be Back

Thanks James for the information, I always thought that the PayPal receipt shows mismatched information. So far I haven't done any spreadsheets. Just kept a copy of all my spending receipts and sales so I'll make sure to do this.

With your advice does this apply even with multiple stealth stores with multiple bank accounts? Can HMRC check into every single bank account that I have?

In another thread you said you have an account with 10,000 feedback how can you be selling so much and not have any clue what so ever about book keeping ? and I thought I was bad at accounting lol.

Hurry up and find an accountant. They will tell you EXACTLY what you need to do, that's their job. As long as all the money from your ten accounts go into the business bank account the accountant shouldn't have any problems filing your taxes correctly. And YES, HMRC have the power to go into anyones bank account and seize everything you own.

https://www.theregister.co.uk/2018/0...mrc_vat_fraud/

https://www.bbc.co.uk/news/business-46838687

Tonnes more stories ... just Google it.

[Ill Be Back]

Originally Posted by james_112233

In another thread you said you have an account with 10,000 feedback how can you be selling so much and not have any clue what so ever about book keeping ? and I thought I was bad at accounting lol.

Hurry up and find an accountant. They will tell you EXACTLY what you need to do, that's their job. As long as all the money from your ten accounts go into the business bank account the accountant shouldn't have any problems filing your taxes correctly. And YES, HMRC have the power to go into anyones bank account and seize everything you own.

https://www.theregister.co.uk/2018/0...mrc_vat_fraud/

https://www.bbc.co.uk/news/business-46838687

Tonnes more stories ... just Google it.

Thanks for all the information. I'll have to look at these and really consider this when moving forward. Haha I haven't been keeping track of any book keeping whatsoever as those sales are really small and easy. I just posted them on my way to work so it wasn't making crazy amounts of money.