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  #1  
Old 06-11-2020
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Default UK tax on stealth accounts

I am starting to get into selling amounts on my stealth where i'm becoming worried about taxes. Is there anyone that has any experience with this. The main problem obviously being that the paypal is all registered under ⊗⊗⊗⊗ details so when trying to pay taxes on the income if this becomes an issue.

Any advice is appreciated.
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Old 06-11-2020
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Default Re: UK tax on stealth accounts

Quote:
Originally Posted by Dramz View Post
I am starting to get into selling amounts on my stealth where i'm becoming worried about taxes. Is there anyone that has any experience with this. The main problem obviously being that the paypal is all registered under ⊗⊗⊗⊗ details so when trying to pay taxes on the income if this becomes an issue.

Any advice is appreciated.
Also have the same question, feedback would be greatly appreciated.
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Old 06-11-2020
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Default Re: UK tax on stealth accounts

You need to register with the Inland Revenue as self employed.
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Default Re: UK tax on stealth accounts

Are you concerned with Paypal or the governement?
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Default Re: UK tax on stealth accounts

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Originally Posted by JimJim View Post
Are you concerned with Paypal or the governement?
Paying taxes on profits through a stealth so the government
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Default Re: UK tax on stealth accounts

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Originally Posted by Dramz View Post
Paying taxes on profits through a stealth so the government
Assuming whatever profit you make through stealth ends up in your legit bank account. So you're not stealth to the government.
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Old 06-12-2020
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Default Re: UK tax on stealth accounts

You should really register as self-employed.

Then as long as you declare your income and pay what's owes to HMRC, that's income tax and VAT where applicable, then you shoud be fine.
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Old 06-12-2020
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Default Re: UK tax on stealth accounts

If I register as a sole trader, I will need to submit my profit/expenses. This will obviously include invoices for products, postage, ebay fees etc. Half of those invoices for postage and ebay fees will not be in my name, how could I submit these as expenses? Also, a little advice on declaring the full value of an item to customs during shipping from china. As i'm sure you're aware, china usually don't declare the full value of the items they ship to save you in import charges, this reduced cost is reflected on their invoice. Would it be better to fully declare the amount of the items to customs and pay the extra import charge "and make less profit on my tax return" or continue with the reduced import charges and "make more profit on my tax return' and pay additional income tax?

Appreciate any feedback, thank you.
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Old 06-28-2020
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Default Re: UK tax on stealth accounts

Don't include the ebay fees. Just do a weekly PayPal withdrawal after u have paid the fees and count that 1 withdrawl as 1 salr as far as ur books are concerned.

When tracking stock do ur stock check but dont assign any values
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Old 02-18-2021
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Default Re: UK tax on stealth accounts

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Originally Posted by aniseed View Post
Don't include the ebay fees. Just do a weekly PayPal withdrawal after u have paid the fees and count that 1 withdrawl as 1 salr as far as ur books are concerned.

When tracking stock do ur stock check but dont assign any values
So you just count withdrawels to bank account as turnover and pay ebay/PayPal fees before the money is withdrawn.. . II'm pretty sure this isn't the correct way to calculate turnover isn't it the money before any fees are taken?
Thanks
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Old 02-18-2021
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Default Re: UK tax on stealth accounts

Just set up a LTD company and have it go through that.
You pay less tax, and it's more of a viable option
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Old 02-18-2021
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Default Re: UK tax on stealth accounts

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Originally Posted by bannana597 View Post
So you just count withdrawels to bank account as turnover and pay ebay/PayPal fees before the money is withdrawn.. . II'm pretty sure this isn't the correct way to calculate turnover isn't it the money before any fees are taken?
Thanks
You are right, it's a lazy way to determine profit (stock etc to be factored in) but could be deemed workable until you get close to VAT threshold. Then you need to monitor turnover carefully.
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Old 02-18-2021
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Default Re: UK tax on stealth accounts

Quote:
Originally Posted by aniseed View Post
Don't include the ebay fees. Just do a weekly PayPal withdrawal after u have paid the fees and count that 1 withdrawl as 1 salr as far as ur books are concerned.

When tracking stock do ur stock check but dont assign any values
I wondered about doing it this way but wasn't sure if it would be acceptable. Might be the only option seeing and names and addresses on invoices don't match.

Please can others provide feedback on if this is the best way? I would happily pay a bookkeeper to log all individual purchases and transactions but there is no point if name and address mismatch causes problems.
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Old 02-18-2021
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Default Re: UK tax on stealth accounts

Quote:
Originally Posted by Ebay.slayer View Post
Just set up a LTD company and have it go through that.
You pay less tax, and it's more of a viable option
Unless you've a pretty large turnover the difference is close to negligible with the recent changes to Corporation Tax and Dividend taxation. Given the additional fees to run a Limited Company, paperwork and submission demands plus the statutory requirements it's not a simple decision.

I also doubt its a 'more viable option', it's much more difficult to stealth via a Limited Company with both Companies House and ebay increasing their KYC demands.
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Old 02-18-2021
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Default Re: UK tax on stealth accounts

Quote:
Originally Posted by Hank View Post
You are right, it's a lazy way to determine profit (stock etc to be factored in) but could be deemed workable until you get close to VAT threshold. Then you need to monitor turnover carefully.
This.

It's better than doing nothing basically. And should you be unfortunate enough to be looked at closely by hmrc they will scrutinize your methods, probably make you pay a penalty and tell you to do it properly but its better than tax evasion altogether which carries a jail sentence.
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Old 02-19-2021
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Default Re: UK tax on stealth accounts

HMRC donesn't have enough manpower to track every bank account. you don't have to do anything.
i'm an LTD VAT registered, i have submitted my end year tax 0 and VAT is always 0 or i even claim something (like vat i pay to DHL). also need to mention that i will leave uk next month for good and i will never come back.
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  #17  
Old 02-19-2021
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Default Re: UK tax on stealth accounts

Quote:
Originally Posted by Dorin View Post
HMRC donesn't have enough manpower to track every bank account. you don't have to do anything.
i'm an LTD VAT registered, i have submitted my end year tax 0 and VAT is always 0 or i even claim something (like vat i pay to DHL). also need to mention that i will leave uk next month for good and i will never come back.
Yeah the rest of us actually like living in the UK, plan to buy a home or have a home / family etc. So if you're in it for the long haul it's best to do stuff by the books as much as you can.

Or you can do what you do until caught which doesn't take a lot .... just a nosey neighbor, jealous friend or partner that makes one anonymous tip for them to dig a little deeper.
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Default Re: UK tax on stealth accounts

why cant you just put it in crypto
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