neo-ninja Posted January 18, 2015 Share Posted January 18, 2015 Hi all, I was wondering if anyone here is an accountant that can give me a little advice with tax via pm. Basically I have been trying the last couple of years to start a few side projects that might earn me some money. Last year I actually started to make some money on one of them via eBay and I wanted to discuss it with someone to make sure I am inside the law paying the correct taxes etc... especially as this year I want to try and expand with Etsy etc.... Just someone trained who can give me a little advice would be fantastic. Thanks guys in advance as always! Quote Link to comment Share on other sites More sharing options...
Sarnie Posted January 18, 2015 Share Posted January 18, 2015 Flex 1 Quote Link to comment Share on other sites More sharing options...
Ponsonby Posted January 19, 2015 Share Posted January 19, 2015 You are doing the right thing seeking proper advice and planning to pay tax on your profit. My accountant has advised me that HMRC are looking at ebay sellers. I have set up business ebay and paypal accounts to keep my business stuff separate from the general household stuff we may sell. There are obviously a heck of a lot of people on ebay making a living (or second income) that don't think they have to pay tax on it. Make sure you keep detailed records of all your incomings and outgoings and will calculate tax as if you were a sole trader unless you are a registered company and remember that if you are successful you may have to register for VAT if you go over the threshold. Good luck with the new venture. Quote Link to comment Share on other sites More sharing options...
neo-ninja Posted January 19, 2015 Author Share Posted January 19, 2015 You are doing the right thing seeking proper advice and planning to pay tax on your profit. My accountant has advised me that HMRC are looking at ebay sellers. I have set up business ebay and paypal accounts to keep my business stuff separate from the general household stuff we may sell. There are obviously a heck of a lot of people on ebay making a living (or second income) that don't think they have to pay tax on it. Make sure you keep detailed records of all your incomings and outgoings and will calculate tax as if you were a sole trader unless you are a registered company and remember that if you are successful you may have to register for VAT if you go over the threshold. Good luck with the new venture. Yeah actually I think what scared me slightly is when I added up how much money I had actually made last year, it was a heck of a lot more then I actually thought it was (but still not a lot by any means!) partyly as I left it in a paypal account and used it on various bits and bobs. Also I have seen a few articles on news sites about IR getting quite harsh. However then for every one of those articles I see other articles saying its a load of rot an its almost impossible for them to find out unless you are selling thousands of items etc.. Basically just some advice would be great, someone I can run the numbers past and what it is I am planning to do this year and see what their thoughts are and what next steps would be. Quote Link to comment Share on other sites More sharing options...
leonk Posted January 19, 2015 Share Posted January 19, 2015 Just do what everyone else does on there. Pay as you go 99p sim changed weekly, bogus contact details and paypal linked to their gran! Glad you are one of the few looking to do it properly. 1 Quote Link to comment Share on other sites More sharing options...
Ponsonby Posted January 19, 2015 Share Posted January 19, 2015 You are doing the right thing seeking proper advice and planning to pay tax on your profit. My accountant has advised me that HMRC are looking at ebay sellers. I have set up business ebay and paypal accounts to keep my business stuff separate from the general household stuff we may sell. There are obviously a heck of a lot of people on ebay making a living (or second income) that don't think they have to pay tax on it. Make sure you keep detailed records of all your incomings and outgoings and will calculate tax as if you were a sole trader unless you are a registered company and remember that if you are successful you may have to register for VAT if you go over the threshold. Good luck with the new venture. Yeah actually I think what scared me slightly is when I added up how much money I had actually made last year, it was a heck of a lot more then I actually thought it was (but still not a lot by any means!) partyly as I left it in a paypal account and used it on various bits and bobs. Also I have seen a few articles on news sites about IR getting quite harsh. However then for every one of those articles I see other articles saying its a load of rot an its almost impossible for them to find out unless you are selling thousands of items etc.. Basically just some advice would be great, someone I can run the numbers past and what it is I am planning to do this year and see what their thoughts are and what next steps would be. HMRC have been slow to look at taxation on Ebay sellers but as more and more people set up their own little (or big) ebay businesses then they will take more notice. I own a couple of businesses, have to account for VAT, have to pay personal tax, have to pay corporation tax - and am just essentially buying and selling. This is no different to someone who buys and sells on ebay. Obviously HMRC do not have the resources to investigate everyone so it really depends if you are unlucky / lucky. Personally I have always been as careful as possible with taxes. Their criteria may look at turnover as well as number of transactions - the stuff I sell goes for £00's so only need to sell a few a year to make a good profit. Quote Link to comment Share on other sites More sharing options...
Tarmac@TarmacSportz Posted January 19, 2015 Share Posted January 19, 2015 Just keep a list of your sales and outgoings and then get an accountant Mine accountant costs £3k a year lol Quote Link to comment Share on other sites More sharing options...
Flex Posted January 20, 2015 Share Posted January 20, 2015 Just keep a list of your sales and outgoings and then get an accountant Mine accountant costs £3k a year lol And I did quote you a lot less than that Quote Link to comment Share on other sites More sharing options...
Sarnie Posted January 20, 2015 Share Posted January 20, 2015 Just keep a list of your sales and outgoings and then get an accountant Mine accountant costs £3k a year lol £3k!?!? You're either making a lot of money or getting bent over!! 2 Quote Link to comment Share on other sites More sharing options...
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