EBAY QUESTION - do you pay additional tax if registerd as a business - HotUKDeals
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EBAY QUESTION - do you pay additional tax if registerd as a business

DEALSALIKE Avatar
banned6y, 3w agoPosted 6 years, 3 weeks ago
I was just wondering do you have to pay tax if you sell over a certain amount on ebay and what that figure is, thanks
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DEALSALIKE Avatar
banned6y, 3w agoPosted 6 years, 3 weeks ago
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banned#1
Same as any bricks & mortar business so all depends on profit made, expenses, wages etc etc.

Too many variables to put a figure on it.

Have to register for VAT too if turnover exceeds a set amount (guessing at 65K).
banned#2
Oh right thanks, i wouldnt class it as a business i just sell the odd amount of things but a freind was telling me i could get a bill from the tax man, hehe im currently a personal seller as im not sure i really qualify as a business, but if you think its around 65k when you got to register then im not even clutching straws
banned#3
do you buy things to sell at a profit?
if so you are a business, if not, you arent
#4
colinsunderland
do you buy things to sell at a profit?
if so you are a business, if not, you arent


lol Colin you summed it up perfectly but short n sweet! I was trying to word something there!
#5
Hi.
You should register as self employed and pay tax if you are getting a regular income from eBay, you don't have to be classed as a business on eBay as you wont get the free listing days. You would need to pay national insurance and do a tax return.
Hope this helps
banned#6
DEALSALIKE
Oh right thanks, i wouldnt class it as a business i just sell the odd amount of things but a freind was telling me i could get a bill from the tax man, hehe im currently a personal seller as im not sure i really qualify as a business, but if you think its around 65k when you got to register then im not even clutching straws

65K is for VAT

tax is payable on items bought and subsequently sold on consistently for a profit. Did read a while back that HMRC has its own ebay division specifically to weed out the tax evaders.
#7
short and sweet reply...

If your buying then selling for a profit then you're a business, no matter on your turnover

You will need to be self employed, pay your NI contributions and pay tax on any profit you make. The NI is around £3 a week and paid every 3 months. Tax paid is the same as any employed person 20% upto 35k, 40% upto £150k and 50% over that amount.

Vat registered is compulsory at £66k but if you buy a lot of goods with vat added then you should register for vat so you can claim that back, then add the vat onto your prices.
banned#8
what if you plan on only selling for short periods f time, i.e sell over a period of two months then stop for 4-5 months?
banned#9
DEALSALIKE
what if you plan on only selling for short periods f time, i.e sell over a period of two months then stop for 4-5 months?


why not answer the questions thats been asked?
What I said in post 3 is the answer to your question. Doesn't matter if you do it for one day or fifty years. Buy to resell you are a business, sell your old stuff, you aren't. Simples.
banned#10
cheers big ears didnt see you comment
banned#11
of course plenty do it without declaring it
up to you if you want to risk it :)
banned#12
whats the risk?
banned#13
im really supprised i honestly didnt think for a min you have to register for tax and this may sound stupid, but how do you go about doing it?
banned#14
As I'm selling my old crap on ebay for a loss, I wonder if I'll get a tax rebate.(_;)
banned#15
dunfyboy
As I'm selling my old crap on ebay for a loss, I wonder if I'll get a tax rebate.(_;)

+1 (_;)
#16
DEALSALIKE
im really supprised i honestly didnt think for a min you have to register for tax and this may sound stupid, but how do you go about doing it?

Phone the tax office and tell them your situation and they’ll send you the appropriate forms.
Remember to keep all receipts for postage, packaging etc as it’s all tax deductable.

DEALSALIKE
what if you plan on only selling for short periods f time, i.e sell over a period of two months then stop for 4-5 months?

I’ve done this in the past and you just need to inform the National Insurance dept when you stop and restart. You only pay NI whilst actually trading but taxable profit is based on a 12 month period regardless of whether you traded for 1 day or 365.

MICHELLE0205
you don't have to be classed as a business on eBay as you wont get the free listing days.

It’s usually worth registering as a Business seller as the Final Values Fees are significantly less and if your volumes are high enough you can benefit from further reductions on all fees. I had very high sales volume over the summer and had about a 25% rebate on eBay fees.

If you trade at a significant level as a personal user eBay will force you to upgrade to a Business seller anyway or shut you down.

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