Selling on ebay whil employed & tax
Discussion
My friend wants to sell a few items on ebay as a small enterprise. She's employed already (earns 5-600 per month). Does she need to register as self employed or just declare the income on a self assessment?
I seem to remember reading that some self employed tax can be taken from PAYE?
I seem to remember reading that some self employed tax can be taken from PAYE?
If you generate profits from a "trading" type activity, you are supposed to notify HM Revenue and Customs within three months of commencement. Once you do, you will be asked to commence paying Class 2 National Insurance and you will eventually receive a Self Assessment tax return for completion.
The tax definition of trading is "the carrying on of a series of economic transactions with a view to making a profit". Selling items regularly on e-bay would constitute "economic transactions".
Whether you have other sources of income already - such as employment income taxed under PAYE - makes no difference to the legal requirement to notify the Revenue that you have commenced trading.
The tax definition of trading is "the carrying on of a series of economic transactions with a view to making a profit". Selling items regularly on e-bay would constitute "economic transactions".
Whether you have other sources of income already - such as employment income taxed under PAYE - makes no difference to the legal requirement to notify the Revenue that you have commenced trading.
What is the "blurred" part.
Doing business is doing business. It doesn't matter if your customers or suppliers are based overseas.
HM Revenue and Customs (the Inland Revenue ceased to exist last year)don't need to have access to e-bay records. The onus is on the trader to notify, not e-bay. They DO have pretty unfettered access to the traders records if they really want to.
>> Edited by Eric Mc on Wednesday 24th May 09:46
Doing business is doing business. It doesn't matter if your customers or suppliers are based overseas.
HM Revenue and Customs (the Inland Revenue ceased to exist last year)don't need to have access to e-bay records. The onus is on the trader to notify, not e-bay. They DO have pretty unfettered access to the traders records if they really want to.
>> Edited by Eric Mc on Wednesday 24th May 09:46
Checking up on ebay traders would be the easiest thing in the world for the IR to do.
eBay keeps records of every transaction for every user.
It would be easy for ebay (or IR) to pull up every trader who sells more than £200 per month and start firing off tax demands.
I think it's been said before 'give 'em enough rope to hang themselves'
eBay keeps records of every transaction for every user.
It would be easy for ebay (or IR) to pull up every trader who sells more than £200 per month and start firing off tax demands.
I think it's been said before 'give 'em enough rope to hang themselves'
aceparts_com said:
Checking up on ebay traders would be the easiest thing in the world for the IR to do.
eBay keeps records of every transaction for every user.
It would be easy for ebay (or IR) to pull up every trader who sells more than £200 per month and start firing off tax demands.
I think it's been said before 'give 'em enough rope to hang themselves'
It probably would be easy, but would HMRC really be bothered with this?
Anyway, would your friend be making £100/200 profit, or is that the value of her sales? If she accounted for her time and other expenses, then she probably wouldn't really be making any money at all.
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