HMRC e-marketplace campaign?

[bridge72]

I came across this article the other day on my twitter account about HMRCs e-marketplace campaign
http://www.kinsellatax.co.uk/index.p...online-traders

I have recently moved home and I have sorted through items that I want to sell and was thinking of extending my eBid account to a seller account but didn't want to pay for this unless I was sure I wouldn't have to declare it to HMRC. I am now worried that I will have to declare and pay tax on them - is this true?

[Anniemcc2]

As long as you are not buying/making goods to re-sell, you are a private seller, not a business.

You sound like me - clearing out the cupboards to try to get something back to help pay for holidays - and save up for a new central heating boiler.

[sheffieldtony]

I Note The Link Is To A Site Selling Tax Advise. This Has Been Up A Few Times. When You Think Of How Many People Sell On Online Auction Sites. [1000s ]] And The Fact That Inland Revenue Have Cut Staff. It Would Take Years To Check Every Account. They May Look At Power Sellers and Big Feedback Sellers. But Sellers Selling There Own Goods Have Nothing To Fear.

[JaBek1]

Here in US one is required to include all income when filing their income tax return, is that not the case in the UK?

[moonwitch]

No. I Havn.t Had A Tax Return For About 5yrs.

I send one every year. It is a legal requirement to register your business if you are buying or making stuff in order to make a profit.

Once I registered with the tax office I was sent my first self assessment form.

[sheffieldtony]

Thats Correct If You Running A Business.

[DZAMBO]

In my opinion Taxman is ok but only example if people sell enough to pay tax for that…I mean some limits or threshold must exist just to give peoples enough room to make something from own selling at least and I think most of stuff which people selling someone pay tax for that already for first time where is item new or come first time for selling…and in my opinion doesn’t matter how is big seller with own items or how much have for sales if not selling enough to pay tax…and likes in here in USA now Pay Pal will report your income to IRS only if you reach $20.000 a year…which is pretty normal and that limit is just a little up how much peoples make it in here from better paying part-time job…but still not enough to make living from that especially if the person depend only for that money….I mean just give people break and separate real amount from ‘’pennies’’…and I think many people in UK pay tax and from that selling and maybe sell about between $1,000 to $5,000 a year…I mean c'mon huh…and many from that pay for the item to resell or selling new item from which seller pay tax already….and many on eBay selling and with all fees what will stay to seller….’’pennies’’ and even after that Tax man charge you tax on that ‘’pennies’’…on other auction sites many even don’t make that much from selling and have probably sales from selling items less of $1,000 a year and here we go again taxman charge you for that too…I mean c’mon get be real and charge sellers who make enough to pay tax, some threshold must exist…so…I am not surprised why some sellers escape from that and not report that income because for real this is not income which you can live from that sales even before tax…for us $20,000 a year is fair amount but still even after that I think after seller put own investing in that and all fees is still not enough to make living if you reach only $20,000 a year…on UK what…?...I sell example $500 a year and I still owe tax…ahhh...c’mon give me break…and I trying example to make profit but I not sell enough even for living…I mean put first peoples needs in the front and if reach enough or limit tax him no problem if not…not…
Well…is just my opinion only for tax……

P.S. In here we can call yourself ‘’a business seller’’ but after tax time come and you not have enough sales to call yourself business seller tax man will transfer you on hobby selling which is way different from business and deductions is not the same…and that is fair tax man game….give peoples break don’t charge him on ‘’pennies’’…AMEN….

[JaBek1]

So! In the UK, unless you are registered as a business, you do not have to report all your income? I must be missing something. Are we talking about income or sales tax, which I believe is called VAT in the UK?

[sheffieldtony]

So! In the UK, unless you are registered as a business, you do not have to report all your income? I must be missing something. Are we talking about income or sales tax, which I believe is called VAT in the UK?

Who charges VAT and what VAT is charged on

VAT-registered businesses add VAT to the sale price of most goods and services they provide.
When you must register for VAT

If you're a business and the goods or services you provide count as what's known as 'taxable supplies' (see 'What is VAT charged on' below) you'll have to register for VAT if either:

• your turnover for the previous 12 months has gone over a specific limit - called the 'VAT threshold' (currently £73,000)
• you think your turnover will soon go over this limit

VAT Is Different to Business Tax. Earnings From A Business Are Taxable After Expenses Are Taken Into Account

[JaBek1]

Who charges VAT and what VAT is charged on

VAT-registered businesses add VAT to the sale price of most goods and services they provide.
When you must register for VAT

If you're a business and the goods or services you provide count as what's known as 'taxable supplies' (see 'What is VAT charged on' below) you'll have to register for VAT if either:

• your turnover for the previous 12 months has gone over a specific limit - called the 'VAT threshold' (currently £73,000)
• you think your turnover will soon go over this limit

VAT Is Different to Business Tax. Earnings From A Business Are Taxable After Expenses Are Taken Into Account

Over here a business is required to collect sales tax for the state on all non-exempt sales if the state has a sales tax statute. Individuals, of course, can't collect it since you must be registered to collect it. However, that doesn't eliminate the buyer's responsibility to pay use tax if their state has one.

With regard to income tax, all citizens are suppose to file a tax return and declare their total earnings for the year regardless of if they are a business or not. Of course, corporations are considered as a separate entity so have to file a return on their income & the stockholders have to include any dividends from their stock as income on their returns. (Some consider this as double taxation.)

Other than the above, most business taxes are actually in the form of license & permit fees, although some, such as trucking companies, may have road use taxes & fuel taxes, I believe. One thing for sure, the governments of almost all countries want their fair (strike that "fair' part) share of everyone's money.