UK Tax

arshavin · #1 01-05-2011

I want to start paying tax on my profits. But i have no idea what i need to do and what is expected of me.

Do i need to print out a copy of every sale on ebay and paypal? Any advice would be welcome.

stickmade · #2 01-05-2011

^^ Wants to know the same. However, im running all stealth accounts and just curious how i could pay some sort of tax just to cover my ass just encase. Thanks

zjnkzjen · #3 01-05-2011

heh ... same here, goign to talk someone legal in the coming weeks, maybe I end up in jail :P

I think you have a vat number and each sale you have to give a vat recipe to your clients, not everyone, when you feel like :P

Try and get the Vat number from the offices in England (Vat Officed if you have)

:D

Stigger · #4 01-05-2011

there are loads of things to concider but you can register self employed online

check this link to start off with:

Once you do that you have to create an invoice for every sale and record all you in goings and out goings, most people dont bother making invoices for cash in hand sales or pay tax on it ( just a note to remember )

basically thats about it in short.

zjnkzjen · #5 01-05-2011

Consider yourself lucky having an online app... in my country the site has been outdated for centuries I bet ...

Wish you luck guyssss

Stigger · #6 01-05-2011

Quote:

Originally Posted by zjnkzjen

heh ... same here, goign to talk someone legal in the coming weeks, maybe I end up in jail :P

I think you have a vat number and each sale you have to give a vat recipe to your clients, not everyone, when you feel like :P

Try and get the Vat number from the offices in England (Vat Officed if you have)

:D

v.a.t is only necessary if your going to be a limited company, i wouldn't bother in the first year or until you need to be, you could end up shooting yourself in the foot.

really it all depends on what you sell, if you sell items and get sued as self employed its you who get it in the neck, if your a limited company then your not liable as a person, another thing is if your business fails like 80% of u.k business in the first 2 years and you owe money then if your self employed it will come out of your pocket, if its a limited company thats not the case

zjnkzjen · #7 01-05-2011

ahhh its different in UK... We here have 2 schemes... Those that pay V.A.T and those not ... those not have a limit of like £5000 and if they exceed they pay vat ...

I was meening for the 1st scheme, were you just produce an invoice for every sale and show what you are selling ... and not exceed that limit ...

stickmade · #8 01-05-2011

Ok so we provide an invoice of each sale with our tax number once gone self employed?... but dose the same still apply for using stealth accounts + fofo items? aww i hate the whole tax thing. What im mainly worried about is that i have large sums of money in banks that i've payed no tax ( not planning to pay tax on it either until later dates)

Stigger · #9 01-05-2011

it is pretty much the same here, maybe im not doing a good job of explaining it.

but you have to be a limited company erning so much around 70k to pay the v.a.t but you also have to pay your personal tax as your an employee of your company, then theres company tax and then corparation tax just for good measure.

hmrc Wonkers, not a chance im paying it all and never will, there are too many people at it paying nothing, i pay what i think i should.

There are some work arounds as to why you are trading online without paying your tax but you deffo cannot be signing on, in most cases you will get aay with just a slap on the wrist but you have to be on your toe's

Stigger · #10 01-05-2011

Quote:

Originally Posted by stickmade

Ok so we provide an invoice of each sale with our tax number once gone self employed?... but dose the same still apply for using stealth accounts + fofo items? aww i hate the whole tax thing. What im mainly worried about is that i have large sums of money in banks that i've payed no tax ( not planning to pay tax on it either until later dates)

Move it .

Dont leave it lying in the bank mate. use people you trust like your great granny or invest it. keep your money moving and working for you.

never go over 16k in your account and i mean never.

zjnkzjen · #11 01-05-2011

heh... nowadays Goverment people check what you have in bank and they "can" and literally CAN not give you benefits like pension, children allownace etc if you have more "money" in your bank.

Do as tizwoz said or else invest in property, gold or even a safe deposit and leave the money their :P

Who knows

:D

Be creative with your money and keep them safe. Surprise yourself

stickmade · #12 01-05-2011

or offshore accounts... Anyone know of a good one? PM if you prefer

lucrative · #13 01-06-2011

Hi,

Ok ill start with VAT:

You must pay VAT at 20% of your gross income if you see more than 70K per annum as an income.

Income is defined as anything you do which brings in money.

You do this via a VAT return that either you or your accountant must prepare every 3 months.

VAT is not just for LTD companies.

You may reclaim VAT and offset it against your income - for example claim back the VAT element on your packaging, fuel, product purchase costs etc.

Its swings and roundabouts and its better if you do the VAT returns personally as there are some benefits that an accountant who may not know your business inside out may miss.

Hiding the money wont make much difference if someone with the nohow investigates you. The nature of what we do leaves a nice digital paper trail for anyone to trace - think about it as im assuming the main % of your income is not cash.

Be careful as our country is entering difficult times - if the government can squeeze some money from somewhere i bet eBay traders not declaring income would be a good place for them to start. think of the commission Aspkin could make..... ha ha

maprod · #14 01-10-2011

I know nothing about it!

Could someone explain to me again. (Base in UK tax since I now live in UK)

1- Is there any problem if I keep selling from now to next 5 years without paying any tax. Let's say I am making £15,000 (with £3,000 pure profit) per month.

2 - How much I am earning that I will have to pay tax. And when ? (when I reach that amount of income?)

3- what if i don't pay tax and keep selling, will ebay know I am not paying tax? or they will require my vat document at some point?

4- what is the best way to avoid paying tax if you are selling online if my income is as above.

lucrative · #15 01-10-2011

Please be careful that this thread doesnt veer into something we shouldnt be talking about.

If you have time then you need to read this.

HM Revenue & Customs: Self Employed

To put it simply im a pretty straight guy and have always lived by the book when it comes to things like this.

Has it done me any favours? I wish!

ha ha but at least i can sleep at night knowing im not going to get HMRC at my door.

GreenBean · #16 01-10-2011

Taxes need to be paid. See an accountant to work out what to do.

Forum does not do this advice.