eBay - Accounts and Tax
eBay - Accounts and Tax
Author
Discussion

JaFool1

Original Poster:

950 posts

225 months

Saturday 7th February 2015
quotequote all
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?

Devilstreak

8,088 posts

212 months

Saturday 7th February 2015
quotequote all
The gross amount. So 10

Super Slo Mo

5,374 posts

229 months

Saturday 7th February 2015
quotequote all
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.

IATM

3,948 posts

178 months

Saturday 7th February 2015
quotequote all
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.

Eric Mc

125,859 posts

296 months

Saturday 7th February 2015
quotequote all
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

northwest monkey

6,370 posts

220 months

Sunday 8th February 2015
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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.

JaFool1

Original Poster:

950 posts

225 months

Monday 9th February 2015
quotequote all
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.

northwest monkey

6,370 posts

220 months

Monday 9th February 2015
quotequote all
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.
It's not obvious!

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.

smile

JaFool1

Original Poster:

950 posts

225 months

Wednesday 11th February 2015
quotequote all
Just what I was looking for, thanks!

Do you know if it possible to get a similar thing via eBay/PayPal rather than downloading monthly statements?

northwest monkey

6,370 posts

220 months

Wednesday 11th February 2015
quotequote all
JaFool1 said:
Just what I was looking for, thanks!

Do you know if it possible to get a similar thing via eBay/PayPal rather than downloading monthly statements?
No.

mad