individual Or Business Seller

[PetBazaar]

That is a good answer, Only just joined on here but my understanding with being on ebay is if you are a sole trader (sole proprietor) ie registered with the inland revenue as self employed you are classed as a business, I imagine the rules would be the same here?

As a general rule of thumb... If you buy something or make something in order to sell it, you're a business.

[123GreatBuy]

As a general rule of thumb... If you buy something or make something in order to sell it, you're a business.

Yes you are correct there when you say if you buy goods to sell then you are classed as a business and pay tax, The only exception would be if it was second hand stuff which you previously owned, But yes i would avoid buying from someone who is buying stuff to sell as your rights are not as good when it comes to a refund.

I think there are lot of people on here and other selling sites that will be caught out very soon when tptb start clamping down

[moonwitch]

As a general rule of thumb... If you buy something or make something in order to sell it, you're a business.

To be pedantic ....if you buy or make something in order to MAKE A PROFIT even if you end up making no profit at all, you are a business.

It's all in the intention

[123GreatBuy]

Im definitely an individual seller. I don't sell enough to be a business

Hi not to be having a go at you but i noticed you sell a lot of new stuff, If you have brought that off a company brand new to sell on then you will be classed as a business even if you dont make any profit and will have to register as self employed.

[moonwitch]

Hi not to be having a go at you but i noticed you sell a lot of new stuff, If you have brought that off a company brand new to sell on then you will be classed as a business even if you dont make any profit and will have to register as self employed.

My business is really small too...I registered it in 2006 and there is really not much paperwork to do.

I just send a summary of my annual accounts to whoever needs to know (A4 sheet) and I have had no hassles with any government department in 6 years.

[123GreatBuy]

My business is really small too...I registered it in 2006 and there is really not much paperwork to do.

I just send a summary of my annual accounts to whoever needs to know (A4 sheet) and I have had no hassles with any government department in 6 years.

Yeah mine is only a small business aswell and you are correct in what you do, I think the wholesalers are creating a lot of damage because they seem to be selling more and more to the general public, Which in turn they can sell for a lot less as they dont have to treat it as a business or to put it better make a living off it.

[PetBazaar]

To be pedantic ....if you buy or make something in order to MAKE A PROFIT even if you end up making no profit at all, you are a business.

It's all in the intention

Wonderfull... I love the idea of buying and selling with the intention of making a loss.

Sorry Mr Taxman, I know I made a million this year and didn't pay any tax, but I intended to not make anything.

But yeah, pedantry forgiven. Just this once.

[123GreatBuy]

Wonderfull... I love the idea of buying and selling with the intention of making a loss.

Sorry Mr Taxman, I know I made a million this year and didn't pay any tax, but I intended to not make anything.

But yeah, pedantry forgiven. Just this once.

lol, I dont think i will make a profit once all the expenses etc are taken out

[moonwitch]

Wonderfull... I love the idea of buying and selling with the intention of making a loss.

Sorry Mr Taxman, I know I made a million this year and didn't pay any tax, but I intended to not make anything.

But yeah, pedantry forgiven. Just this once.

I guess you have never heard of a non profit making business then?

[moonwitch]

lol, I dont think i will make a profit once all the expenses etc are taken out

I made my first profit during the last tax year and I expect to increase that now that I don't buy stock to sell on.