Ebay forces upgrade to Business due to new HMRC regulations

[sportex-uk]

Hi All.

I've received an email from ebay forcing me to switch to business account due to the volume of my recent sales. Customer service explained that I exceeded £1800 in one month, so they act in line with new HMRC regulations. The email is a bit threatening: "We need you to make these changes to your account within the next 21 days. If you don’t, your selling privileges may be blocked. This includes listings ended and loss of selling history."

However, As I'm not ready to go business and I consider my increased activity as temporary, Customer Service advised that if reduce my sales volume, I can stay private. Has any of you passed through this process?

Also, what happensto your existing promo listings if you switch to business? Are they allowed to continue on promo terms and with 'no returns accepted' until they sell or end?

[douglaspuglas]

If you ignore eBay and carry on selling like you are there's a very good chance eBay will freeze your account until you register as business.

[darth_baggins]

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@sportex-uk wrote:

No no, I got a bunch of items to get rid of as one-off, not intending to buy more, hence my question.

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Then how come you say you're an established Nike reseller in your listings?

[papso22]

Assuming you decide to continue selling items you have bought to sell and hence need a business account, you can simply upgade this one and all your listings will stay as they are.  If ebay suspends your account because you don't comply, that's when you lose the listings and the listing history.

[sportex-uk]

Thank you for this?

I'm not worried about HMRC and the tax side as I do have all reconcilliation being done with due dilligence. I was not really prepared that it will go so well, I considered this as a short-time activity on a small scale and below any thresholds, only to top up my weekend money. So it's a bit overwhelming, hence my questions. Thanks.

[sportex-uk]

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@papso22 wrote:

Assuming you decide to continue selling items you have bought to sell and hence need a business account, you can simply upgade this one and all your listings will stay as they are.  If ebay suspends your account because you don't comply, that's when you lose the listings and the listing history.

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Is this confirmed info? As it's exactly what I wanted to find out.

[howmuchtobid]

Taken from one of your listings.

"PLEASE NOTE THIS ACCOUNT IS GOING TO CHANGE TO BUSINESS WHAT IS ASSOCIATED WITH INCREASED SALES COSTS. AS A RESULT, THE PRICE OF THIS ITEM IS GOING TO INCREASE BY CA 10% WHEN THIS AUCTION RENEWS. GRAB IT WHILE IT'S CHEAPER."

[howmuchtobid]

I presume you are referring to the likes of me when you are describing people as being discourteous ???

I'm very sorry however I will be courteous when it is justified, in this situation it clearly isn't.

[btr.style]

Whether buying to sell temporarily or as a long term thing, you are still selling to profit and even 1 item sold this way, requires you to fully comply with the law. 

Businesses/Resellers/One off sellers who bought items to sell for profit have to show full address details before any sale takes place as per distance selling regulations (only possible with a business account). Returns, for any reason also have to be accepted. 

You've rode your luck for some time now (Sales of this stuff as far back as October, but no doubt trading this way for some time before then), deprived customers of their rights in favour of getting free listings and fee promos. eBay have caught up with you and temporary or not, you should have been on a business account from day 1. 

[bravergrace]

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@howmuchtobid wrote:

I presume you are referring to the likes of me when you are describing people as being discourteous ???

I'm very sorry however I will be courteous when it is justified, in this situation it clearly isn't.

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I wasn't actually referring to anyone in particular.  But the way I see it, is that the OP asked for help and advice, as they don't really understand the situation re business selling on eBay (which isn't surprising, because the eBay rep they asked for help clearly didn't understand it either).  If you're already trading as a business when you sign up to eBay, the "business/private" seller choice is clear-cut and unavoidable.  If you start off as a private seller, as most of us do, it's quite hard to find the correct information on eBay, because the eBay reps come from countries where the laws are completely different.

I reckon it's best to assume good faith, and give the OP honest and polite advice, without trading insults.  It's more likely to help the OP to make an informed and honourable decision, if we present the facts and options rather than accusing them of dishonesty.  Not many people accept advice if they feel it's hostile and unkind - regardless of the rights and wrongs of the matter.

[plpmr]

adding to the advice already given -

Another possible problem is if a question is asked - how can a private seller have so many brand new genuine trainers?

trading standards and other authorities are cracking down on counterfeit items, so such a question will raise a red flag.

[susapric-68]

Think the poster think they have a full 21 days and trying to clear it all before that, message from eBay says "Within 21 days" a bit like saying you can win upto £1000 then win a £10. I can see another post coming soon saying they gave me 21 days but suspended me 2 days later

[abercrombie-antiques-art-design]

This has been the law for years. You can't run a business & pay no tax. Reselling for profit is running a business. Unless of course your terrible at it & sell less than £20 a week 

[btr.style]

Clear it all? I highly doubt they have just what's listed and that's that considering they've been selling this new stuff for quite some time and use the fee promo. 

As with most business resellers who are on private accounts for the fee promo, they'll always try and keep to 100 listings so nothing they sell gets charged full fees. Then as stuff sells they'll top it up to 100 again with more stock on the next fee promo. 

The OP does have a bit more than 100 items listed but that's usually due to the crossover of the promos (some from the previous promo with 14 days left, some with the recent promo with 28 days left). Mind you, there was no promo 2 weeks ago so likely the excess are low value goods. 

At the end of the day, the OP has knowingly used a fee promo for those clearing out old stuff from home to undercut correctly registered and law abiding businesses and now eBay are rightfully pushing them onto a business account, they don't find it fair as they are only doing it 'temporarily'. 

What isn't fair is the amount of customers buying from this seller believing they are a business from the way they have presented the listings (and so could return something if there's problems). Then when the item doesn't fit, they realise no returns and are stuck with having to sell the item on at a loss on social media.

[abercrombie-antiques-art-design]

Are you serious? You have 412 sales within the last 3 months & 123 listings.  I can't see what your average sale is but based just on the last weeks average you already have £22'000 worth of sales & have an oustanding tax & NI bill assuming no other job of £3000 if you have another job its £6000. This information is being passed to HMRC in Jan 2025 so if your thinking of slowing down or hiding. Sorry its already to late, you have destroyed thresholds.

[abercrombie-antiques-art-design]

This is an interesting topic. It raises the clear problem that sellers are actively pretending to be ignorant of what they should be doing & that ebay have been complicit it allowing it to happen.

The reason for staying on a private account are obvious. Costs to list are much lower & common promotions have enabled this seller to uncut competition who are paying larger fees to sell. The obvious trading standards issues with this many sellers do not know or are ignoring we will park.

As for what happens now this seller will have to register as a business seller, his account & all listings will be carried over & he will have to inform them of his sole trader or ltd company reference number or they account will be closed.

As for Tax issues, this seller has said he is legal. But no matter if he is not telling the truth ebay will inform HMRC of the entire income from selling this person gained from April 6th 2023 to April 5th 2024 when they declare during January 2025 as everyone has been told. The reason this date is important as all self traders & companies have to decalre their own figures by the end of Jan 2025 for the tax year 2023-2024. All HMRC will have to do is compare what a person has declared against what ebay paid them.  No one can hide from this. Is been law for years, this Jan change is just an update on how its reported. 

[pg_kicks]

Thing is as he/she has already mentioned they are fine with HMRC if they are reporting it back like said, its just nice to see eBay are finally closing the huge loophole they left open on their own site.

Now for the OP

I'm calling BS on the I came into a bulk buy though, you admit you have receipts from Nike/authorised retailers, Nike only let you get a certain amount so unless you stopped on a 52 seater coach and everyone just came across that certain amount you have been playing the system, just think yourself lucky you got away with it for so long and now you can join the side who have been complaining about sellers like yourself for years.

As long as you upgrade anything will stay the same, you might get a few angry customers who want to return, best off just accepting these even if you were breaking the law previously and not accepting them, not worth the neg feedback.

Dont ever believe anything CS agents tell you regarding law/tax/or even ebay policy, always best to look it up yourself as they will tell you whatever you want to hear.

[sportex-uk]

Thanks. Not many useful responses here, but yours is. How's it going on as a business account? Do you see any difference in how your listings reach people? I've noticed FVF promo listings don't get as much attention as standard listings, what would be a bonus when going pro. Or do you just need to live with 12.8% fees and compensate returns and high fees by higher prices on a Top Seller status?

I got only 3 or 4 return requests so far and have always been accepting them when people messaged me to seek solution. HMRC is not a concern, people here think I'm crazy to hide the income, so not really see any sense in responding to them. It's just me being a bit afraid of continuing this activity and switching to business, as there's no return, as I'm considering just giving up.

[pg_kicks]

I'll be brutally honest and its not a direct attack against yourself, accounts that were incorrectly registered make it harder, as you know you can offer cheaper prices as you get discounts so you basically screwed me over ha. You dont get TRS if you sell an item with AG, I complained about the issue in November and still waiting to hear back.

You just have to accept the fees and the returns, expect that to increase as people buy from me, know the size they need then return and then buy from accounts like you who can charge less as they are using the 80% off promo and dont offer returns. People have told me if I can price match after they have received it they will keep them if not they will just return and buy from somebody breaking the law, its annoying hence why I constantly complain about incorrectly registered sellers. Also as you (all businesses) advertise that they accept returns people will take the risk if they arent sure on their size.

The issue with giving up is you have stock so you'll be a bit screwed as taking them back is an issue if over 30 days. I'll be honest with your level of selling if its just part time then carry on if it fails it fails and you just sell what you have as a business and then give up. You might know yourself finding stock is pretty hard (was even fun years ago) as everyone thought theyd do what youre doing but I expect a lot will back out if eBay do what they have done to you to as the 100's of others doing the same, £1800 a month is only 5 or 6 a week.

Best to just change now bite the bullet and see how it goes, worst case you have a decent bit of pocket money and you smile looking back how you screwed over eBay (and others) finding the loophole and it was fun whilst it lasted.

Don't just open a new account and try and bypass it though, eBay might act stupid but they'd catch you and a new account has funds held and they'll make you fight for it.

[iew-signed-books]

You have been trading fraudulently - to the detriment of many honest and honourable sellers. And ignorance of the law is, as they say, no excuse.

[exponential_developments]

If its all your stuff, you must have strange feet as your foot size is anything from 6 to 11.5...........  😂