HMRC To Crack Down On eBay Traders Over Christmas
According to accounting and advisory firm, UHY Hacker Young, eBay traders operating
on a casual basis over the Christmas period must still register with HM Revenue
and Customs, regardless of whether there is any tax to pay, or risk a fine of
GBP100.
Following enquiries from the firm, the UK tax authority confirmed that any
income earned from trading online, no matter how small the amount, will result
in the need to notify the commencement of a self-employment, even if the trader
is under the income tax threshold. According to UHY, thousands of casual traders 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. Derek Levy, partner at the firm's London office, observed that: “It is unlikely to occur to the casual trader who dabbles a bit at Christmas
to register with HMRC. Whether the trader is under the taxable threshold is
irrelevant – and this is where people will get caught out.” He added: “You are allowed to sell personal possessions online without notifying
HMRC, but if goods are purchased with the intention of selling them at a profit,
you are trading, and you must register and possibly file a tax return.” .
|
|
IMPORTANT NOTICE: TAX-NEWS.COM has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All materials on this site copyright TAX-NEWS.COM 1999 to 2007. Contact us for further information.