Online Trading HMRCs View

Posted by:

Are you involved in online selling on eBay, Gumtree or the like!

If so you could be targeted under the taxman’s extended powers.

There was a previous “amnesty” type campaign in 2012 which brought in tax of £9 million and sellers were warned that their hobby could be classed as a trade by HMRC and thus taxed!

Now the taxman is back on the case particularly for those who registered their selling as a business site on eBay or Amazon for example etc

Over the past 18 months alone I have settled many such cases from Northumberland to Norwich the two largest being where undeclared turnovers exceeded £200,000 per annum from mass market selling of very small low cost items ! And all this indicated clearly from the FEEDBACK shown which HMRC have access to!

Here it was not purely the income tax which was at stake, but large VAT liabilities were due on failing to register.

Only one that I’ve seen personally targeted by the taxman’s letter gave rise to no tax – as it was fully declared as a sideline/ online marketplace to his shop in Grimsby!

But get it wrong and what may have started out as a hobby could involve paying back taxes, late payment interest and hefty penalties to HMRC.


About the Author:

  Related Posts
  • No related posts found.

Add a Comment

4 + eight =