Regular online trader? Watch out, Her Majesty’s Revenue & Customs may soon want a slice of your profits…
This week the much reviled department has announced an Online Trading Guide in which it informs UK eBay and Yahoo! Auctions fanatics that money they earn from the goods they sell could soon be liable to tax.
The body goes on to dictate that it will consider users to be self employed if they regularly buy goods purely with the intention of selling them on, produce goods which they then sell at a profit or offer a service for receipt of payment.
Revenue & Customs says if it deems you are in one of these categories then – like any self employed person – you will need to pay Income Tax, National Insurance Tax and go through one of those hideous Self Assessment forms.
"In the new guidance, there are examples to help you work out if you have to pay tax when you sell items online,” said Stuart Hartlib, Revenue & Customs’ Director of Risk & Intelligence (and possibly receiver of least Christmas cards in history). “You can also access information related to online trading about issues such as Capital Gains Tax and VAT. This site is designed to make registering and paying tax easier, so you can work out whether you are self-employed and need to file a return."
Are you in for a rude awakening? Click on the link below to see if I’ve just ruined your day…