eBay - Accounts and Tax
Discussion
Hello,
Just a quick question, when looking at your eBay sales in regards to end of year tax and self assessment do you include the total selling price of an item into your turnover, or do you only include the money your receive into your PayPal account (i.e. less PayPal fees)
So for example:-
Sale price £10
eBay fees - £2
Amount received in PayPal account £8
Do you use the £10 figure to calculate your turnover or the £8?
Just a quick question, when looking at your eBay sales in regards to end of year tax and self assessment do you include the total selling price of an item into your turnover, or do you only include the money your receive into your PayPal account (i.e. less PayPal fees)
So for example:-
Sale price £10
eBay fees - £2
Amount received in PayPal account £8
Do you use the £10 figure to calculate your turnover or the £8?
I'm not sure what options you have on the self assessment forms. Presumably you're doing this as a small sole trader?
Do you have a box for turnover or income and one for costs? Or is it just an income box? If it's the latter you ought to be able to deduct your costs before arriving at the total.
I would, however strongly recommend you pay an accountant to advise on this as HMRC will be after you for back tax and interest if you get it wrong.
Do you have a box for turnover or income and one for costs? Or is it just an income box? If it's the latter you ought to be able to deduct your costs before arriving at the total.
I would, however strongly recommend you pay an accountant to advise on this as HMRC will be after you for back tax and interest if you get it wrong.
I wouldnt bother using different sources to figure our your sales figure etc etc, its a pain in the ass. Depending on if you have other revenues of sales generation. Everything for me goes through paypal.
you should learn to use the reports generated from paypal it will help you considerably.
I cant remember off the top of my head but there is 4 main reports - It is the one shown 4th.
You select your dates and for those dates inclusive it will show you total sales, total paypal fees taken off, fees refunded, refunds you have done and of course your ebay fees will be shown in there as a lump monthly sum taken off too so you get a net figure in the last column after paypal fees, ebay fees, refunds etc etc
It is much much easier.
Hope this helps.
you should learn to use the reports generated from paypal it will help you considerably.
I cant remember off the top of my head but there is 4 main reports - It is the one shown 4th.
You select your dates and for those dates inclusive it will show you total sales, total paypal fees taken off, fees refunded, refunds you have done and of course your ebay fees will be shown in there as a lump monthly sum taken off too so you get a net figure in the last column after paypal fees, ebay fees, refunds etc etc
It is much much easier.
Hope this helps.
If you are trading (using e-bay or in any other way), you are liable to Income Tax on any profits you make from that trading.
Therefore, HMRC expects you to reveal in the Self Assessment tax return your net taxable profit from the trading activity. If you generate TURNOVER under £81,000 per annum - then you can return on the tax form a simplified summary of the trading figures which is referred to as "There Line Accounting".
Essentially, you show -
Gross Sales
Allowable Business Costs
Net taxable profit
Therefore, HMRC expects you to reveal in the Self Assessment tax return your net taxable profit from the trading activity. If you generate TURNOVER under £81,000 per annum - then you can return on the tax form a simplified summary of the trading figures which is referred to as "There Line Accounting".
Essentially, you show -
Gross Sales
Allowable Business Costs
Net taxable profit
If you're using an accountant, they will want both your monthly Paypal figures and your monthly Ebay figures (both are easy to get).
If you only supply the Ebay figures, they show gross sales which also includes "sales" from people that don't pay.
It's a shame Ebay don't copy Amazon in this respect - Amazon generate an annual report with everything on it - sales, refunds, fees etc on one easy sheet.
If you only supply the Ebay figures, they show gross sales which also includes "sales" from people that don't pay.
It's a shame Ebay don't copy Amazon in this respect - Amazon generate an annual report with everything on it - sales, refunds, fees etc on one easy sheet.
northwest monkey said:
If you're using an accountant, they will want both your monthly Paypal figures and your monthly Ebay figures (both are easy to get).
If you only supply the Ebay figures, they show gross sales which also includes "sales" from people that don't pay.
It's a shame Ebay don't copy Amazon in this respect - Amazon generate an annual report with everything on it - sales, refunds, fees etc on one easy sheet.
Do you have a link to where I can generate the Amazon annual report, I have been searching through my seller account and I cannot find it myself. If you only supply the Ebay figures, they show gross sales which also includes "sales" from people that don't pay.
It's a shame Ebay don't copy Amazon in this respect - Amazon generate an annual report with everything on it - sales, refunds, fees etc on one easy sheet.
JaFool1 said:
northwest monkey said:
If you're using an accountant, they will want both your monthly Paypal figures and your monthly Ebay figures (both are easy to get).
If you only supply the Ebay figures, they show gross sales which also includes "sales" from people that don't pay.
It's a shame Ebay don't copy Amazon in this respect - Amazon generate an annual report with everything on it - sales, refunds, fees etc on one easy sheet.
Do you have a link to where I can generate the Amazon annual report, I have been searching through my seller account and I cannot find it myself. If you only supply the Ebay figures, they show gross sales which also includes "sales" from people that don't pay.
It's a shame Ebay don't copy Amazon in this respect - Amazon generate an annual report with everything on it - sales, refunds, fees etc on one easy sheet.
From the "Seller Central" page go to "Reports" > "Payments" > "Date Range Reports" > "Generate a Report" then do a "Summary" and "Custom" do your dates "From" and "To".
Generates a nice 1-page report.
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