HMRC are going after tax evaders on the world wide web…
Internet shopping sites such as eBay have become increasingly popular amongst those wanting to raise a bit of extra cash, but it seems that most users don’t understand there are in fact tax implications involved.
There is a huge difference in people selling a few unwanted items, who would probably avoid any tax liabilities, and those who are trading through websites like eBay or even trading at car boot sales.
There is a simple way to look at it however. You are not trading if you:-
- Occasionally sell unwanted personal items through classified ads or internet auctions
- Sell unwanted household items at a car boot sale once a year
You are trading if you:-
- Sell goods you have bought for resale
- Provide a service and receive payment (whether in cash or kind)
- Sell or buy items on behalf of others for financial gain (earning a commission for example)
- Make and produce items yourself and sell them in order to make a profit
If you have caught the eBay bug then you really do need to be careful as you never know just who is looking at your eBay records.
If you are worried that you are going to be included in HMRC’s latest crackdown or have already received a visit from the taxman then get advice NOW.
KinsellaTax have a team of ex-Inspector of Taxes and ex-Customs officers ready to take your call 24 hours a day on 0800 471 4546 or click here to fill in a tax enquiry form.