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I recently read an article that mentioned that the UK Tax Man is exercising their expanded powers to go after online sellers that aren't paying their taxes on those sales. I've often wondered about how many sellers in the UK didn't consider themselves businesses even though they were selling in an attempt to produce income. Has something changed in regard to how Her Majesty's Tax Collectors view what constitutes a business?
As far as I know the law hasn't changed but every now and then HMRC huffs and puffs about it. The fact is that there are not enough inspectors to do the job properly and even more are going http://economia.icaew.com/news/octob...d-redundancies
If I remember the article correctly, it said something about them having their power expanded last year. I think the article was on ecommercebytes . I'll see if I can find the link to it again.
Here's a link to the article:
http://www.ecommercebytes.com/cab/abn/y15/m06/i02/s01
According to this article the powers to nick your money are only proposed http://www.telegraph.co.uk/finance/personalfinance/tax/11056408/HMRC-powers-to-raid-bank-accounts-could-see-return-to-cash-under-the-mattress.htmlQuote:
Originally Posted by JaBek1
It's a minefield out there though and this bloody government isn't helping by sneaking in new powers for itself and HMRC while we're looking the other way
It has always been the case that if you buy something with the intention of selling it on at a profit that it is classed as taxable income and should be notified to the taxman. The article gives the example of a seller who made £300,000 over 6 years, I would have though that anybody in their right mind would realise that was taxable. The reality is that small sellers are unlikely to get a knock on the door as there are not enough inspectors, so they are likely to go after the big fish. But it is easy enough to send a generic email out to millions of sellers in the hope that some would come clean. Mine is all declared so not bothered what they do.
PS. The article does not mention eBid, so obviously they know nothing sells on here so nothing will be due from us.
I'd guess it's only a matter of time before HMRC demands sellers' info from eBid and a good few other smaller sites.
I wouldn't like to be in the shoes of the £300k seller. That one is well within the realms of VAT ... & looking at serious jail time.
Yvonne x
I've wondered about business licensing in the UK for some time. I always thought that unlicensed businesses put the licensed business owner at a disadvantage.