selling on ebay
Post 12 of 17
Replying to [S McB]: cheers lol gorden brown lol
i wana earn more then 60k and not pay any tax!! i wish!!
i wana earn more then 60k and not pay any tax!! i wish!!
16 May 2006 14:11
Post 13 of 17
Replying to [alimartin888]: Well if your working full time and sell on ebay part time with sales between 50-60k if you choose the right products you could still make an extra 5-15k profit per year. But then again if you do become VAT registered im shaw that you do get some money back such as postage costs, electricity bills etc. Go onto to the customs website and send them an email or phone them up they were very helpful when i contacted them!!!
16 May 2006 17:59
Post 14 of 17
Replying to [S McB]: sorry guys you have got it all wrong , don't take this the wrong way but if you don't know what your tax liabilties are then you should'nt even be selling stuff at a car boot sale never mind e-bay!!!! , I have had a few businesses in our good old U.K. and if you are not careful you will come unstuck with the taxman , if you have a fulltime job and you pay income tax through the normal channels then anything you earn over and above that will have to be declared on a self assessment form and then the taxman will decide whether or not you owe anything , dont forget to put the expenses on the form i.e. fuel costs advertising etc, all these urban myths you here about down the pub where these so called "experts " tell you that you can earn £60k without paying tax are living on another planet!!! the £60k is the approximate turnover figure at which a business has to be v.a.t. registered ,another thing to remember is that the inland revenue have agents scanning e-bay all day long looking for people who are selling stuff frequently but not paying tax , they then present you with an estimated tax bill and its up to you to prove that you havent made as much as they say if not you pay up or go to jail , and if you havent kept accurate records of ingoings and outgoings thats another offence you will face plus you cant then start deducting legitimate business expenses from non existing business records , in my opinion you never pay that much in tax anyway as long as you have a decent accountant or do your own accounts , also you can go to your local tax office and speak to someone who will tell you exactly what you can deduct for business expenses and what you cant , if you don't want to do all this you will most certainly fail and you should'nt really be seriously thinking about going into business mate , all the best ,
regards , Hilton
regards , Hilton
23 Jan 2007 09:23
Post 15 of 17
Replying to [hilton]:
Please read Hiltons post above. It is 100% accurate. You DO have to declare the income and it is almost impossible to "hide" it from the taxman. The odds are pretty good you will accept Paypal as a form of payment I would guess if you want to be a PowerSeller..... That my friends leaves a paper trail a mile wide for the tax office to find.
The 60K is also correct but please err on the side of caution as that number is very soft. If you assume 40K you will be better off. The taxman can make that number move around just for fun (they like doing that).
One extra claim you CAN legally make as an expense are the Ebay selling fees and Final Value Fees. as well as any fees from Paypal. They are 100% legitimate ....... so are your shipping costs.
Paper for the printer/ ink cartridges/ internet connection/ if you are a SOHO then you can possibly also claim some rent/electricity as well but for that you want an accountant becuase there are rules for how much exactly you can claim.
As a suggestion: If you are seriously looking at seling 40K+ worth of products on Ebay, you are talking a serious business. Might as well go the whole hog and sell as a wholesaler in your area as well. that way your expenses become even more legit to the tax office (they are still a bit leery of Ebay being a REAL job!)
Oh and to answer your other question.
YES I sell enough on Ebay to have to declare the income. Either pay the tax or when they find you pay the tax+fines+ possible prison time.. not much of a choice is it?
Please read Hiltons post above. It is 100% accurate. You DO have to declare the income and it is almost impossible to "hide" it from the taxman. The odds are pretty good you will accept Paypal as a form of payment I would guess if you want to be a PowerSeller..... That my friends leaves a paper trail a mile wide for the tax office to find.
The 60K is also correct but please err on the side of caution as that number is very soft. If you assume 40K you will be better off. The taxman can make that number move around just for fun (they like doing that).
One extra claim you CAN legally make as an expense are the Ebay selling fees and Final Value Fees. as well as any fees from Paypal. They are 100% legitimate ....... so are your shipping costs.
Paper for the printer/ ink cartridges/ internet connection/ if you are a SOHO then you can possibly also claim some rent/electricity as well but for that you want an accountant becuase there are rules for how much exactly you can claim.
As a suggestion: If you are seriously looking at seling 40K+ worth of products on Ebay, you are talking a serious business. Might as well go the whole hog and sell as a wholesaler in your area as well. that way your expenses become even more legit to the tax office (they are still a bit leery of Ebay being a REAL job!)
Oh and to answer your other question.
YES I sell enough on Ebay to have to declare the income. Either pay the tax or when they find you pay the tax+fines+ possible prison time.. not much of a choice is it?
23 Jan 2007 10:52
Post 16 of 17
Replying to [alimartin888]:
If you are drawing the earnings from th country of your residence then you have to declare the income for the purpose of taxation; most probably the tax may be deducted at source and you will be paid post-deduction..
If however you are not a resident of the country originating the earnings then the taxation is not applicable in that country though you may be required to declare it with the revenue authorities of the country of your residence.
Regards
If you are drawing the earnings from th country of your residence then you have to declare the income for the purpose of taxation; most probably the tax may be deducted at source and you will be paid post-deduction..
If however you are not a resident of the country originating the earnings then the taxation is not applicable in that country though you may be required to declare it with the revenue authorities of the country of your residence.
Regards
23 Jan 2007 11:36
Post 17 of 17
Replying to [alimartin888]:HI there .
sorry I forgot to mention in my last reply , if you are importing the goods to sell on e-bay then you will have to give all your personal details and relevant info to the customs and excise before they will release the goods at port of entry so therefore they will know approximately how much you stand to make in profit just by looking at how much the stuff cost you , to be honest you cant really go wrong if you are legit , look at it this way (a) you make little or no profit , you pay no tax (b) you make plenty profit you pay standard rate income tax , but that should'nt worry you as you will still have enough left from your massive profit to buy the ferrari , holiday home in monte carlo etc..etc..etc so just relax and enjoy the whole experience.
regards , Hilton
sorry I forgot to mention in my last reply , if you are importing the goods to sell on e-bay then you will have to give all your personal details and relevant info to the customs and excise before they will release the goods at port of entry so therefore they will know approximately how much you stand to make in profit just by looking at how much the stuff cost you , to be honest you cant really go wrong if you are legit , look at it this way (a) you make little or no profit , you pay no tax (b) you make plenty profit you pay standard rate income tax , but that should'nt worry you as you will still have enough left from your massive profit to buy the ferrari , holiday home in monte carlo etc..etc..etc so just relax and enjoy the whole experience.
regards , Hilton
23 Jan 2007 12:06