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How to start paying tax
 

Hi everyone
So I have been selling on eBay under my friends details for about 18 months now but I want to start paying tax as quite a bit of money is coming through.
If I am correct from what I have read I would now be ok to add a bank account to eBay in my name?
Thanks any info related is appreciated :thumb:

Re: How to start paying tax
 

For those 18 months, were you using your friend's bank account? Just clarifying

Re: How to start paying tax
 

Yes that's correct I am still using a bank account we made under his details at the start of the account.

Re: How to start paying tax
 

Can anyone help please ?

Re: How to start paying tax
 

You should have been ok using your own bank account from the very beginning.... Did you ever read the stealth guide?

Any ways what you can do now is ask your friend to perhaps add you to the bank ACC? That's a safer way so you don't need to change anything on the eBay side.

Re: How to start paying tax
 

I wasn't on this forum then and thought it was the safest thing to do. In regards to buying the stealth guide I haven't yet as I think technically I am not doing stealth as i'm using real details? Me being added on has crossed my mind but HMRC are then going to surely contact him also? Ideally I don't want to pay taxes through a shared bank account I didn't know this was a thing. appreciate your reply I am really lost with all this.

Re: How to start paying tax
 

OP, if sales are really high like this and you want that smooth transition, possibly have your friend add you on to account at bank and look at establishing a business - you might need to find professional tax advisor outside the forum

Re: How to start paying tax
 

I am ready to be added to my friends bank account but I am very nervous about the whole thing, I really can't afford losing this account. Can you confirm if you know anyone that has done this method please?

Re: How to start paying tax
 

You need to read these:

https://www.gov.uk/government/consul...s-consultation

https://www.taylorwessing.com/en/ins...eporting-rules

https://www.ey.com/en_gl/tax-alerts/...ital-platforms

https://www.gov.uk/government/public...eporting-rules

Ebay will soon be sending details of all seller activity to HMRC.

How it will play out is unclear but it seems very likely that the account holder will be responsible for any tax due.

Many of us with UK stealth accounts are already addressing the implications, you need to accept the possibility that HMRC will hold your friend responsible for the account, it's turnover and ultimately any tax due, to say the money 'belongs to you' probably won't wash. Plenty of time to legally circumnavigate it but it needs to be addressed, or you can wing it and wait for your friend to get a letter in the post.

Like I said, how it will play out is still anyones guess but forewarned is forearmed.

Re: How to start paying tax
 

does Ebay verify the name on the new bank account?
Assuming you are trying to replace the existing bank account of your friend with yours.
It may not be that easy,if so,anyone who hacks into a seller account can replace his bank account with another bank account !
i dont know how UK tax authority handles this,but in USA,IRS agent and state auditor will look at his bank account and figures these are either his salary if he works,inheritance,retirement fund,insurance claims,if not then it is taxable income and why didnt he report them?
State auditor is worse,they assume these are cash sales and he is not collecting sales tax.
The best is to say he is selling for you and he gets a commish for doing so.and you send him some form,in USA,we will send him a 1099 form showing he is a contractor,

Re: How to start paying tax
 

They're not looking to change the bank account, merely add their name to an existing one.

AFAIK, this will not trigger any verification issues with ebay, indeed they'll not even need to know of the change.

Whilst not the same as how taxation is addressed in the US, there are issues around the corner which I've mentioned above which stealther will need to be aware of.

Re: How to start paying tax
 

friend today,enemy tomorrow.

Re: How to start paying tax
 

What's your current thoughts on this?

Re: How to start paying tax
 

I have never wanted to avoid paying tax so this isn't really a slap in the face but only problem is the account holder will be liable. So what are people currently doing to legally circumnavigate it then? I feel like I am slowly coming to terms that I have to find another stream of income :( eBay has been great to me and there is so much potential on the platform I just can't seem to let it go.

Re: How to start paying tax
 

I have never wanted to avoid paying tax so this isn't really a slap in the face but only problem is the account holder will be liable. So what are people currently doing to legally circumnavigate it then? I feel like I am slowly coming to terms that I have to find another stream of income :( eBay has been great to me and there is so much potential on the platform I just can't seem to let it go.

Re: How to start paying tax
 

Look up nominee middleman returns and talk to a CPA.

Never mind , this applies to usa sorry about that

Re: How to start paying tax
 

The account is in your friends name so in HMRCs eyes he is liable.

The easiest and simplest solution is your friend pays the tax and you pay your friend the taxed amount.

Otherwise, HMRC will look and see if your friend is trying to evade paying tax e.g if he pays the tax then would he move into a higher tax band and therefore is using you to negate paying extra tax.

HMRC like to see a trail so, as long as you can show the amounts moving from your friends bank account to your bank account, which matches up with ebay monthly statements, then I can't see this causing any issues, you will be asked why you are using your friends account, which is not a crime but be prepared for that.

Call in to the "personal tax helpline" and see what they say, you don't have to give them your real details for advice.

Re: How to start paying tax
 

I pay the correct tax on all my earnings. my issues is where some accounts are registered in stealth details, this info will be sent to HMRC. When they see these details are made up it will no doubt cause issues. As they have access to our bank account info they can see who owns the account.

Re: How to start paying tax
 

I don't think this is good advice. How can the poster prove they have any income NI contributions, etc. If HMRC look into them they will have to pay Tax on the income they receive in their accounts. Unless there's a reason, just create an ebay account in your name. What happens if you fall out with your friend, etc

Re: How to start paying tax
 

if you have the Ebay listings ,they would show the amount paid by the buyer,and you show the seller aint you with his Ebay ID and personal details.
if the Ebay details is all stealth,he would have more explanation to do.
I dont know what kind of friend OP is using,could be his mother or grandma?

Re: How to start paying tax
 

Op clearly says it's his friends details.

Re: How to start paying tax
 

grandma and mother can be friends too.

Re: How to start paying tax
 

Two ways to look at it. Tidy up your act and look to create some legitimacy, maybe through some slowly implemented account changes even to the point of closing some accounts if it goes pear shaped. Limited Company manipulation could possible be another route.


Another option is to chance your arm, given the huge amount of data that HRMC are going to have dropped on their desk (lets not forget the huge scope of these changes, it's not just selling platforms) then you could opt for the safety in number argument - one would think they'll cherry-pick their favourite new customers in the short term. Would blanket letters to everyone on their lists work??

I'm already heading down the route of the first option. I'm of an age where I simply do not want any legal confrontation, particularly if it could involve jail time which it could if they bottomed out my numbers. I will close accounts if necessary.

Re: How to start paying tax
 

Thanks,

For ebay I know what I'm going to do. Amazon is a different beast though. I feel changing info on Amazon will trigger verification which it won't past. We still have 10 odd months to think about it.

Re: How to start paying tax
 

Most people would say family instead of friends in that situation. Either way you can still fall out with your family.

Re: How to start paying tax
 

If I could create an account in my name then I don't think I would be on this site lol. Got MC011 on my account about 4 years ago. Boy I wish I could turn back time.

Re: How to start paying tax
 

You're actually wrong. You'll be fine to create an account now. All banned info used before Managed Payments came into effect can now be used.

Re: How to start paying tax
 

As the saying goes there are 2 things you can't avoid in life..death and taxes. I for sure want to do everything by the books. I want this to be my career. I will arrange some consultations with some accountants to find out what I can do.

Re: How to start paying tax
 

nice approach :thumb:

Re: How to start paying tax
 

Did you not read my post?

Re: How to start paying tax
 

Just a friend not a relative.

Re: How to start paying tax
 

Who the heck did you hear this rubbish off :L

Re: How to start paying tax
 

Shows how much you know. It's true, i've done, and loads of people have. Once others confirm, I'll wait for the apology.

Re: How to start paying tax
 

Re: How to start paying tax
 

Me sitting here waiting for the apology now.....

Re: How to start paying tax
 

Should have mentioned this earlier, you can. :)

You could create a new account in your own name, don't duplicate anything wherever possible like email, phone number etc and there's a good chance it will survive. But if some of the doomsayers on this forum are to be believed they are currently suspending all new accounts. I'm not having it, but could happen.

But given your friends account is established, and assuming it's currently operating as a private seller account, you could change the details to yours. An element of risk but again, you might be surprised that ebay will just let it go through unchallenged.

Has your friends account been asked to supply any docs?

Re: How to start paying tax
 

yes dont pay tax or you will stay broke

Re: How to start paying tax
 

I was using managed payments when I got suspended?

Re: How to start paying tax
 

Hi, thanks for the reply. No hasn't been asked for any docs.I did initially think this (trying to create an account again in my details) However my dad tried creating an account last year which they reviewed and banned after 6 days so I just gave up on that idea.

Re: How to start paying tax
 

Sorry my mistake, I didn't read it correctly but it doesn't matter anyway as i was banned when on managed payments. Maybe me saying account was closed 4 years ago had you confused, bad guess from me maybe more like 3-3 1/2 but I was put on managed payments as soon as it come out :(