stuff i sell

missinglink · #1 12-29-2013

this is not whether or how to pay tax question so do not delete,

just askin when you fill tax return and report, do they ever look or ask what you sell? I am talking about very little income but just over threshold.

MM78 · #2 12-29-2013

Do you plan to do your own taxes or have a professional do it for you?

missinglink · #3 12-30-2013

just do it myself for now.

an experience out there?

rsot · #4 12-30-2013

Just get some affordable software like Quicken or so - most of the time (again I wont say never) but low sales are unlikely to be audited - just be smart about it

missinglink · #5 12-30-2013

how smart you mean? I just want to know if anyone with low sales ever got asked what goods are or to give user id or transactions from paypal etc - this is what I meaning.

luverlyjuberly · #6 12-30-2013

I've never been asked any of those questions by the taxman or been asked to show user ID or transactions from PayPal, etc. not since 2001 when I started a business. I have low sales to deliberately keep below the threshold (and I don't need a lot of money so it suits me fine). I got caught out once and owed £700 - never again.

mynameis · #7 01-01-2014

Quote:

Originally Posted by luverlyjuberly

I've never been asked any of those questions by the taxman or been asked to show user ID or transactions from PayPal, etc. not since 2001 when I started a business. I have low sales to deliberately keep below the threshold (and I don't need a lot of money so it suits me fine). I got caught out once and owed £700 - never again.

How did you not pay the tax as its shown on the end of year accounts., or did you just forget?

luverlyjuberly · #8 01-02-2014

I didn't have it in my pocket! I'd got into some debt and was skint. Luckily the taxman let me pay in installments of £70.00 a month. What pissed me off was that after I had payed off the debt I then very quickly got a bill for the next year. When self-employed the taxman "decides" how much profit you will make the following year and bills you accordingly, they tax you on money you haven't made yet. So I payed the next £700 and then got it back a few months after I had paid the last installment!

jeffweico · #9 01-02-2014

I would also, out of curiosity, like to know the answer to this question.

In the USA, on our tax forms, we just report gross sales and categorize our expenses, ending up with line items like:

Gross Sales
Cost of Merchandise Sold
Avdertising
Rent
Office Supplies
Postage
etc, etc.

BUT: If you get audited, they COULD, if they wanted to, demand that you show them each transaction. That could include a description of what was sold. This almost never happens, but you should be aware that it COULD come up.

I have no idea what the rules are in the UK, but would love to know, just for my own edification.

rsot · #10 01-02-2014

Quote:

Originally Posted by luverlyjuberly

I didn't have it in my pocket! I'd got into some debt and was skint. Luckily the taxman let me pay in installments of £70.00 a month. What pissed me off was that after I had payed off the debt I then very quickly got a bill for the next year. When self-employed the taxman "decides" how much profit you will make the following year and bills you accordingly, they tax you on money you haven't made yet. So I payed the next £700 and then got it back a few months after I had paid the last installment!

Agree somewhat - time to get the professional advice in order and get into sales properly and to the cent

aniseed · #11 01-02-2014

My worry is that if they want details, then PayPal invoices have a stealth name and are for ⊗⊗⊗⊗ products.

What do our big sellers do?

jeffweico · #12 01-02-2014

Quote:

Originally Posted by aniseed

My worry is that if they want details, then PayPal invoices have a stealth name and are for ⊗⊗⊗⊗ products.

What do our big sellers do?

Can you upgrade to a business account? That is normally how we handle it in the USA. eBay never seems to get the information on the business here, but to the IRS it would look totally normal.

aniseed · #13 01-03-2014

All my ebay and paypals are business accounts - I thought that was the norm.

At the mo on my books I just write john smiths discounts and £200 income. No paperwork or anything else to suggest what john smiths discounts is, but if I got audited I'm guessing they'd want proof of incomings not just expenditures.

rsot · #14 01-03-2014

Quote:

Originally Posted by aniseed

My worry is that if they want details, then PayPal invoices have a stealth name and are for ⊗⊗⊗⊗ products.

What do our big sellers do?

Big sellers have tax professional advice.

aniseed · #15 01-03-2014

Quote:

Originally Posted by rsot

Big sellers have tax professional advice.

Lol good point

missinglink · #16 01-03-2014

yeh jeffweico has a point about they 'could' ask, make me wonder if safer NOT to declare it.

any experience of this? I mean not declaring it, not talking huge amounts eg maybe 4000 over

NoneOther · #17 01-03-2014

Safer not to declare income to the Revenue?

Definitely not!

If anyone is worried about stuff like this they should get an accountant or tax advisor.

itemauctions · #18 01-03-2014

Yeah always remember to pay your taxes!

JamesNorth101 · #19 01-03-2014

Quote:

Originally Posted by aniseed

My worry is that if they want details, then PayPal invoices have a stealth name and are for ⊗⊗⊗⊗ products.

This sounds like your selling phakes. If that is so then taxes may well be the least of the worries in the long term.

luverlyjuberly · #20 01-03-2014

Reminds me of the time a copper knocked on my door about a theft from my car. Without thinking I let him in and then prayed for the next thirty minutes he wouldn't say anything about the packs of ⊗⊗⊗⊗ designer clothing that were in plain view.

I'm glad to say that selling ⊗⊗⊗⊗ gear is a long way behind me. It's just not worth it.

rsot · #21 01-03-2014

Quote:

Originally Posted by luverlyjuberly

Reminds me of the time a copper knocked on my door about a theft from my car. Without thinking I let him in and then prayed for the next thirty minutes he wouldn't say anything about the packs of ⊗⊗⊗⊗ designer clothing that were in plain view.

I'm glad to say that selling ⊗⊗⊗⊗ gear is a long way behind me. It's just not worth it.

...fashion police... /nod

John11uk · #22 01-04-2014

A lot depends if you operate as a sole trader or a business(for example Ltd). Rules for sole traders are much more relaxed compared to limited companies (Ltd). If you told hmrc that you are trading they will send you a tax self-assessment form to fill. If you haven't told them and you are only making 4k and a bit more annually operating as a sole trader you are very unlikely to get this form. Unless someone will inform hmrc that this person is trading and not declaring all income. If you get contact from hmrc you will not get any fines, you will have to fill tax self-assessment form. Then you MUST fill it in and send back to them..

Regarding asking for records it is very unlikely they will ask for invoices for a sole trader. When you declare your income and expenses to show tax liability for a financial year, and if it not look right to them, they might ask you to provide your trading records. Please read the link below about fines for not keeping adequate records:
HM Revenue & Customs: Business records checks

The best would be to talk to an accountant about what you do. There is a very big difference if you talk to someone you pay for a consultation and someone you might know, who is not interested to make money out of you.

In conclusion I will say that everyone must declare their income and pay their taxes.