It is currently Mon Dec 17, 2018 1:36 pm




Post new topic Reply to topic  [ 269 posts ]  Go to page 1, 2, 3, 4, 5 ... 11  Next
 Damn tax man... 
Author Message
Moderator
Moderator
User avatar

Joined: Mon Sep 04, 2006 12:32 am
Posts: 6421
Post Damn tax man...
Damn tax man!
Quote:
Individuals who buy and sell items over the internet may in future find it harder to claim they didn’t realise their trade was taxable, in light of new guidelines from HM Revenue & Customs.

Aimed squarely at people who sell items through websites such as eBay, the fresh advice has been issued to demystify the fog between non-taxable loft clearers and taxable e-traders.

Freelance UK has heard from tax advisors that the onus is always on the individual to prove they are not operating a trade, as opposed to the Revenue proving they have been trading.

According to the new guidelines, available on HMRC’s website, people are now liable for tax if they use the likes of Yahoo! and eBay to provide goods to customers and they pay in return.

Read more


i think everyone should read the whole report.. and thanx to eddy for posting this there !

_________________
LOBAY - LOCAL EBAY BARGAIN FINDER


Wed Feb 07, 2007 10:38 pm
Profile
member
member
User avatar

Joined: Fri Nov 24, 2006 1:43 pm
Posts: 1407
Post 
:cry:

This is the one thing that has always confused me and gets me a little worried :?

Im a mum of 3 and dont work , have been told if you sell things from your home its ok.... but if you earn a certain amount a year its not.

Where / when do you have to register as a earner??? and how ? Is it difficult , with all the book keeping and stuff ?
So much to find out :?

:oops: :oops:

Will be reading that report tomorrow.
Thanks Mark for posting it.

_________________
Image
Leta's Blog
Mrs cashback
Free business cards here


Wed Feb 07, 2007 10:46 pm
Profile WWW
Moderator
Moderator
User avatar

Joined: Mon Sep 04, 2006 12:32 am
Posts: 6421
Post 
that report is saying that the rulls are/have changed.. and now if you buy to sell or make to sell then you should register !!..


and i have been told ebay offer up your info to the tax man.. well that report is saying the same too !

_________________
LOBAY - LOCAL EBAY BARGAIN FINDER


Wed Feb 07, 2007 10:50 pm
Profile
Moderator
Moderator
User avatar

Joined: Fri Jan 12, 2007 7:25 pm
Posts: 3058
Location: Near Peterborough
Post 
HMRC are actively cracking down on Ebay businesses - and that will include most people on here!

I myself pay tax as a self employed person; my businesses are registered with HMRC and I complete a self assessment return every year.

The only reason why many on Ebay have not yet been accosted is because of the sheer scale of the problem they face - prosecuting Ebay sellers is like shooting fish in a barrel with unlimited ammo. They can never eat all the fish that they catch!

My friend who is agoraphobic, and who buys and sells from home, was recently surprised to find out that I could quote his Ebay turnover: from gb tools of course! So think how easily HMRC will find it out...

_________________
Gamucci Electronic Cigarettes
http://www.aaamusements.co.uk
http://www.fruit-machine-sales.co.uk
http://www.fruitmachinerefillkeys.com


Wed Feb 07, 2007 11:18 pm
Profile WWW
Site admin
Site admin
User avatar

Joined: Thu Sep 07, 2006 9:05 pm
Posts: 4116
Location: Behind a V8 engine.
Post 
Mark - short term memory?!!

http://www.powersellersforum.com/viewtopic.php?t=142

_________________
For local ebay bargains visit - Local Bargain finder


Wed Feb 07, 2007 11:26 pm
Profile WWW
Moderator
Moderator
User avatar

Joined: Fri Jan 12, 2007 7:25 pm
Posts: 3058
Location: Near Peterborough
Post 
Thought I had read something recently on here!

_________________
Gamucci Electronic Cigarettes
http://www.aaamusements.co.uk
http://www.fruit-machine-sales.co.uk
http://www.fruitmachinerefillkeys.com


Wed Feb 07, 2007 11:31 pm
Profile WWW
member
member

Joined: Mon Oct 30, 2006 2:20 pm
Posts: 1520
Location: "Somewhere above the centre of the Earth!" " that's a strange name,
Post 
The thing that no one has mentioned here is the rise in selling cost.

Ebay listing
Ebay FVF
Paypal
Tax

Add that up and your not going to see much out of your 99p auction.
The world is open to free trade on the WWW, how do other counties clam tax back from their populace?
A guy in the states sells you something over here, will he be taxed because the tax system is very different.
The Tax system in the country is shout, it's geared up for the little people, not the big guy who do not pay tax, they have good accountants.
It is easy to get pennies out of the likes of us, very difficult to get pounds out of a powerseller.
Bacardi-Martini UK made a profit of 1.5 Million for the year 2004/5, that's what they paid tax on, (Companies House figures)
If you get my drift.
We have all got to move to Italy
:.: :.:

_________________
"In the end, more than freedom, they wanted security. They wanted a comfortable life, and they lost it all – security, comfort, and freedom. Whet the Athenians finally wanted not to give to society but for society to give to them, when the freedom they wished for most was freedom from responsibility, then Athens ceased to be free and was never free again"


Thu Feb 08, 2007 7:21 am
Profile WWW
member
member
User avatar

Joined: Wed Dec 13, 2006 5:05 pm
Posts: 618
Location: South London
Post 
Quote:
This is the one thing that has always confused me and gets me a little worried

Im a mum of 3 and dont work , have been told if you sell things from your home its ok.... but if you earn a certain amount a year its not.

Where / when do you have to register as a earner??? and how ? Is it difficult , with all the book keeping and stuff ?
So much to find out



Hi ya!

I'm in the same Leta, I could kick myself now though, I'm sure I read somewhere (probably Martyn Lewis's site again) just last week that if you are selling stuff on ebay then your personal allowance goes up to approx £8100. So our allowance is just over £5000 I think, then you can add another 3 on top. NOw, dont quote me on it because it was a long report and I couldnt read it all then, I just skimmed it.

The other thing is that the tax office do have a department solely dedicated to investigating ebay sellers and I know of 2 recently who have been asked to show all there details and records etc (Feedback rating of about 1500 and the other 2000).
ONe is being investigated because she is saying that she sells things from home and what friends and family have given her to sell. But she sells approx 25 items a day, all different things, new, nearly new etc. The tax office dont believe her. So that's that one. The other is being investigated for similar, too many items being sold per day. Both sellers dont have shops.

The only other thing I heard recently from a very reliable source I know (a tax inspector :wink: ) is that if you earn less than 65K a year you will not be investigated this year. They are moving everyone up north from March onwards so they dont even know what is happening themselves.

Not sure if this helps any.

xxxx

_________________
FabD9Hosting
Turn Internet Traffic Into A Steady Income
You Want To Save Money On Ebay Don't You?


Thu Feb 08, 2007 8:47 am
Profile
Site admin
Site admin
User avatar

Joined: Thu Sep 07, 2006 9:05 pm
Posts: 4116
Location: Behind a V8 engine.
Post 
I have been keeping detailed records now for about 6 months, and I plan to go down the self assesment route at the end of the next financial year.

My accountant is very creative - I can deduct any fuel mileage charges off earnings, and also make an allowance for re-useable packaging etc.
It's small scale at the moment, but everyone starts somewhere.

The easiest way to start with is to create two piles of documents - the first is all the receipts on how you spend on stock (or give it a value if it is a personal item you are selling!!), download your ebay monthly invoice to see your selling fees, add that to the pile, how much you spend on postage etc, add that to the pile as well then another pile with all your income receipts - basically monthly paypal income and details ofany cheques, or bank transfer payments.

Depending if you are telling tax man or a potential investor depends on how much can be put into each pile...! There is a certain amount of creativety that is legally allowed so best take advantage of it!

_________________
For local ebay bargains visit - Local Bargain finder


Thu Feb 08, 2007 8:52 am
Profile WWW
member
member

Joined: Sat Jan 06, 2007 6:45 pm
Posts: 208
Location: Doncaster UK
Post 
Im going to check it out. Wonder what my tax allowance will be coz i work part time and hubby has a good job. i went to our local business start up in December and the bloke there said i would be better off informing them that i sell on ebay just so they are aware, He said a lot of ppl are scared of tellin the tax man but its best to tell em or summat.

Carole

_________________
Please visit my shop, the only dedicated Babyshower shop on Ebay UK.

http://stores.ebay.co.uk/Simply-Babyshower


Thu Feb 08, 2007 8:55 am
Profile
member
member
User avatar

Joined: Fri Nov 24, 2006 1:43 pm
Posts: 1407
Post 
Well at the moment I am only selling stuff from the house and the odd new item people give me from unwanted gifts ect.
As you see I have only 3 items up just now, I never have more than around 20 and dont have a shop.
Dont make much at all in profit because things sell real cheap and fees take it away but i'm doing it as a learning process to prepare for when I want to start buying to sell and try to get a income working from home, as I am home anyway.
I do keep notes of post and fees but not much else as I am still learning.
Its really just a case of finding out where to start and the costs of starting up. Just spent a fortune renovating the house :roll: thats why i'm using this time to learn as much as possible first.
Is a accountant really needed? and are they exspencive ? :P
Guess I have a lot of reading ahead of me :( , and I hate too much reading hehe i'm more of a learn by trial and error person :P

_________________
Image
Leta's Blog
Mrs cashback
Free business cards here


Thu Feb 08, 2007 9:08 am
Profile WWW
Site admin
Site admin
User avatar

Joined: Thu Sep 07, 2006 9:05 pm
Posts: 4116
Location: Behind a V8 engine.
Post 
The £65k limit you mention is the VAT threshold - if your turnover exceeds this you MUST register for VAT. You can register for VAT at any turnover level, but beyond this it is compulsary.

With regards personal earnings, I am going off to investigate, but I'm pretty sure the limit before declaration is about £4,500 - this is also the figure that you can earn before any benefits or social security allowances are affected.

I'll dig around for some definitive sources later in the day to clarify.

_________________
For local ebay bargains visit - Local Bargain finder


Thu Feb 08, 2007 9:10 am
Profile WWW
member
member
User avatar

Joined: Fri Nov 24, 2006 1:43 pm
Posts: 1407
Post 
Thanks Steve :D

_________________
Image
Leta's Blog
Mrs cashback
Free business cards here


Thu Feb 08, 2007 9:12 am
Profile WWW
member
member

Joined: Sat Jan 06, 2007 6:45 pm
Posts: 208
Location: Doncaster UK
Post 
Ive had a read on the hmcr website and i cant make head nor tail of it. As i am employed part time & sell on ebay then i must be employed & self employed but it doesnt say anything about wether my wage and the ebay is combined to make a threshold or wether they are separate. ???????????????? all its saying is tax has to be paid but doesnt mention any thresholds or owt

We have 3 houses and were considering selling 1 but were told that we would have to pay 40% tax on any profit, If this is true then we wont be selling, but cant find owt about that either.

Carole

_________________
Please visit my shop, the only dedicated Babyshower shop on Ebay UK.

http://stores.ebay.co.uk/Simply-Babyshower


Thu Feb 08, 2007 9:36 am
Profile
member
member
User avatar

Joined: Fri Nov 24, 2006 1:43 pm
Posts: 1407
Post 
They dont make it easy , do they :roll:

This is why I hate reading this stuff , they need to lay it out in 'easy english for dummies' heheh ;)

_________________
Image
Leta's Blog
Mrs cashback
Free business cards here


Thu Feb 08, 2007 10:04 am
Profile WWW
Site admin
Site admin
User avatar

Joined: Thu Sep 07, 2006 9:05 pm
Posts: 4116
Location: Behind a V8 engine.
Post 
I'll be seeing my accountant on Monday so I should get some simple answers there, but to clarify the personal tax situation - each person has an allowance of around £5000 per year that you are allowed to earn before you pay tax. The next 2,000 or so is taxed at 10%, then 22% up to £32k. Beyond that you are in 40% tax bracket. All sources of income are added together - part-time jobs, ebay, car boot revenue etc..

Your allowance is reduced depending on any employer benefits you may or may not receive - I have a company car, private fuel and healthcare, so my tax free allowance is stripped away before I've earned anything!

Even if it is only small amounts, it is best to at least let the tax-man know. I had a bit of a tax issue about 5 years ago, and when it comes to creditor pecking order, the taxman is first in the queue and always carries a big stick. I owed about £6000 in back tax, and they had the option to demand full and immediate payment which would have crippled me. I was allowed to pay it off over 12 months (on top of the current years tax!!) but they are not always this generous.


Carole - the reason you would have to pay 40% on your house sale is because I guess it is not your main domestic residence property, or you are not planning to buy another house with the proceeds. Welcome to capital gains tax...!

Accountants are expensive - it's very rare to see change from about £75 per hour, but when you are dealing with big numbers and personal tax, it is actually a small price to pay. The good ones can save you you thousands per year.

Which is why mine has a Lotus, A Merc and a 500k house in Lymm...!

_________________
For local ebay bargains visit - Local Bargain finder


Thu Feb 08, 2007 10:05 am
Profile WWW
member
member
User avatar

Joined: Fri Nov 24, 2006 1:43 pm
Posts: 1407
Post 
Ekkk ... all sounds a little scary :P

I dont have any income at all , unless they count child benefit and child maintainence?
Then theres my partners wage :P

Accountants ...hmmm .... guess I better take a book keeping course :P
Annoying thing is I used to do a market traders books about 10years ago , cant believe I have forgotten it all already :roll: :oops:
Thats what kids , divorce and age can do to ya !! . :wink:

_________________
Image
Leta's Blog
Mrs cashback
Free business cards here


Thu Feb 08, 2007 10:19 am
Profile WWW
member
member

Joined: Sat Jan 06, 2007 6:45 pm
Posts: 208
Location: Doncaster UK
Post 
I think it prob just sounds more scary than what it is, like what that start up bloke said to me, Its just about the unknown. I might phone em up but not mention names,.. It makes ya wonder whats the point of working anyway.

i was thinking about a book keeping course, my mum did one but she enjoys stuff like that.
Carole

_________________
Please visit my shop, the only dedicated Babyshower shop on Ebay UK.

http://stores.ebay.co.uk/Simply-Babyshower


Thu Feb 08, 2007 10:29 am
Profile
member
member
User avatar

Joined: Wed Dec 13, 2006 5:05 pm
Posts: 618
Location: South London
Post 
Unfortunately Carole, it's true, is the 40% thing the Capital Gains tax?

They do like to take a huge slice out of any profit made. :cry:
Unbelievable eh! What area are your properties in? Think carefully before you do anything. What a pain eh.

_________________
FabD9Hosting
Turn Internet Traffic Into A Steady Income
You Want To Save Money On Ebay Don't You?


Thu Feb 08, 2007 11:28 am
Profile
member
member

Joined: Sat Jan 06, 2007 6:45 pm
Posts: 208
Location: Doncaster UK
Post 
There in Doncaster. We were thinking about selling coz the tenant is moving out in August, but we might just get someone else in. The other one my dad lives in but only covers the mortgage so no profit there, The financial advisor said i wouldnt get taxed on that one coz my dad lives there so is classed as a family home!!!!

Oh well, think i might emigrate ..

Carole.

_________________
Please visit my shop, the only dedicated Babyshower shop on Ebay UK.

http://stores.ebay.co.uk/Simply-Babyshower


Thu Feb 08, 2007 12:06 pm
Profile
Moderator
Moderator
User avatar

Joined: Fri Jan 12, 2007 7:25 pm
Posts: 3058
Location: Near Peterborough
Post 
leta50 wrote:
I dont have any income at all , unless they count child benefit and child maintainence?


Yep, all benefits will count as taxable income!

_________________
Gamucci Electronic Cigarettes
http://www.aaamusements.co.uk
http://www.fruit-machine-sales.co.uk
http://www.fruitmachinerefillkeys.com


Thu Feb 08, 2007 2:27 pm
Profile WWW
member
member
User avatar

Joined: Wed Dec 13, 2006 5:05 pm
Posts: 618
Location: South London
Post 
Quote:
Yep, all benefits will count as taxable income!


oh my god that's terrible!

Anyway, Carole, something else I just found out ( please do correct me anyone if I am wrong, well it wont be me that's wrong but the person who told me but you know what I mean :.: )

But if you are unemployed and own property, if it is in your name then you wont be taxed as much?
PLease clarify if anyone knows as this could affect me. Ta!

_________________
FabD9Hosting
Turn Internet Traffic Into A Steady Income
You Want To Save Money On Ebay Don't You?


Thu Feb 08, 2007 2:32 pm
Profile
Moderator
Moderator
User avatar

Joined: Fri Jan 12, 2007 7:25 pm
Posts: 3058
Location: Near Peterborough
Post 
If you are unemployed then more of your personal allowance is available, hence you can earn more money from property before you start to pay tax.

_________________
Gamucci Electronic Cigarettes
http://www.aaamusements.co.uk
http://www.fruit-machine-sales.co.uk
http://www.fruitmachinerefillkeys.com


Thu Feb 08, 2007 2:40 pm
Profile WWW
member
member
User avatar

Joined: Wed Dec 13, 2006 5:05 pm
Posts: 618
Location: South London
Post 
Ta for that! That's what I like to hear!

xxxxx

_________________
FabD9Hosting
Turn Internet Traffic Into A Steady Income
You Want To Save Money On Ebay Don't You?


Thu Feb 08, 2007 2:56 pm
Profile
Moderator
Moderator
User avatar

Joined: Fri Jan 12, 2007 7:25 pm
Posts: 3058
Location: Near Peterborough
Post 
Leta, I do not think you need to worry if that is the real extent of any "business" you have on Ebay.
They are unlikely to take an interest in you.

Every year when I am doing my tax return I consider suicide as a viable alternative... :cry:

_________________
Gamucci Electronic Cigarettes
http://www.aaamusements.co.uk
http://www.fruit-machine-sales.co.uk
http://www.fruitmachinerefillkeys.com


Thu Feb 08, 2007 9:43 pm
Profile WWW
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 269 posts ]  Go to page 1, 2, 3, 4, 5 ... 11  Next


Who is online

Users browsing this forum: vanillaicee and 4 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group.
Web Design Wigan Dog Kennels and Runs