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asked to go ebay business acoount
 

hi all

my first post here i found this site and looks to have a lot of info i am hoping that the many questions i have can be answered and that the progress i make good or bad i can report back here to help others.

I have used ebay for a long time just both buying/selling i sold lots of items and realised the items i was selling were going cheaper that what i was getting them for i decided to buy some of the items and relist them buying and selling with the same account and its worked really well for over a year now. but now ebay have said i need to upgrade to a business account.

my questions are what i was doing is this accepted the email i got suggested i am doing something wrong tax wise i guess. what are the rules on that is there a certain amount of money made a year before paying tax?

also i have not got a clue of becoming a business and dont particullary want one. whats my options now for getting rid of my stock and also if possible continuing what i was doing?

i have read on this site and my family members have said use my account but looking through this site im now not sure thats good idea.

any help would be great

UK MEMBER

Best to start making new accounts and spreading your sales.

Shows that you are understanding why this is NOT the way to do things. :thumb:

spread your sales on several accounts, that will help you alot

Thanks for the quick replies

What is my first step to doing this is it to purchase the stealth book. How complicated is it to creating accounts this way?

very easy to create accounts and many avenues available. Maintaining them is where things can get a little difficult. But, once you know the method and learn from your (or others) mistakes, its very lucrative and easy.

Sure you need to read the stealth book first and read most of the threads to have a good idea how to start

Will buy and have a read through here's hoping its not too complicated.

With me still having a eBay account that requires upgrading what should I do with this?

If I manage to create accounts using stealth, am I too use my old account to buy items for resale?

Or do I leave this account with all my details well alone?

Cheers

For the moment, leave this account alone if you are not going to proceed with making it a business account.

Before saying what to do with this account, it would be preferable to make sure it is set up OK especially if you have had other accounts suspended.

Have more of a read and decide which way you will go.

Hi greenbean

Thanks for the reply, I won't make it in too a business account but say this account was a stealth account would that then be okay to make in to a business account?
Sorry for all the questions in one thread

Yes you can convert a private account to a business account at any time, even stealth accounts.

I do it all the time, no issues.

my advise would be to set it up as a part time business and pay as little tax as possible.

i know one thing, you might lose more money tring to avoid paying tax than you might if you actually pay it.

just mi two cents.

Hi tizwoz. Thanks for your input. Id be interested in finding out what others suggest about this?
I ain't sure how tax would work someone in the thread mentioned 10-20 thousand is that total sales or profit?
With eBay is it a case that you can buy as much as you like but you can't sell a lot. Or is there problems for people who buy lots of items.

Hi when you say no issues how can that be? If I act as a business what are the implications? What happens any info would be great please

If you are buying goods specifically to resell then as far as HMRC are concerned you are a business and are legally required to register as such, either as a sole trader or a ltd co.

HMRC do not particularly bother what name your business trades under but they do care that all earned income is declared and any tax due is paid.

As for advice on how to operate, I and most others would suggest you take professional advice i.e. an accountant or tax advisor.

There are no issues with e/b p/p or HMRC providing you conduct your business affairs properly.

hi thanks for replys, i must state that when say buy/sell its not loads, profit prob around 2-3 thousand a year?

is there not an amount of profit earned before having tax and if i look on ebay there are lots of people selling same kinda stuff, but these are not registered a business.

do all people how are selling the stealth way go down these lines also of being a sole trader?

cheers

As far as HMRC and the law is concerned if you but goods specifically to resell then you are required to required to register as a business, declare the income and pay tax on the profits.

What you can earn before paying tax is known as your Personal Allowance and ANY & ALL amount over this is liable for tax.

No not everyone declares their extra earnings to HMRC but that is up to them. However if HMRC do come knocking one day then they are in for a whole world of pain.

It's quite simple, if you earn the money then pay the tax.

Believe me you do not want HMRC investigating your tax affairs.

hi NoneOther
many thanks for the detailed post, ive only recently become aware that this is something which requires doing i suppose me using the same buyer/seller account on ebay and openly doing this would back that up. as if i knew was doing wrong would of tried a different method. if i have earnt money through doing this but have no books then how would i go on from that?

thanks for the good advice i am recieving also.

cheers