HMRC keeping one eye on eBay traders over Christmas

There are possibly thousands of casual traders who will be buying and selling online in the period leading up to Christmas without realising their obligations towards the taxman. Trading includes buying goods with the intention of selling them at a profit, as opposed to selling personal possessions.

HMRC is entitled to issue a GBP100 fine for failing to register. If the individual is already a tax-payer or the profit from trading exceeds the personal allowance then a liability may arise to income tax, and national insurance.

An individual is allowed to sell personal items without the need to register, however, if there is a clear intention to trade and make profits as described above then the individual will need to register as self-employed.

Are you an eBay Trader

Here at Charlton Baker we have several clients who are dedicated eBay traders and our Tax Team have assisted them in dealing with their tax affairs and registering with HMRC.

We also help some clients with their record keeping, this is made much easier when using Xero because you can get a direct data feed from your bank account and from Paypal. Data entry becomes so much easier.

If reading this you feel we can help you then please do not hesitate to contact us.

Tags: Tax Advisory, Xero

Categories: Charlton Baker

About the Author

Anthony Brown

After undergoing his training within a Corporate Finance team of a medium sized Accountancy Practice he became a self-employed consultant at the age of 23. Over a ten year period he undertook many assigning within the Corporate Finance, Management Accounting and Business Advisory specialisms acting quite often as a part-time Finance Director for a variety of Owner Managed Businesses.

Having moved to Wiltshire he returned to Public Practice in 2010 and has built up a wealth of contacts across the county and concentrates on developing new business opportunities for Charlton Baker, meeting potential new clients and helping to manage existing client relationships. He is actively providing Corporate Finance advice and he is also Vice-President of the Devizes Chamber of Commerce.

Authors Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it