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?

[iew-signed-books]

Very bold, Mr Horne.

[geosacha007]

To be fair the OP said that they do pay HMRC for tax on their sales, so it is only the ebay problem of not declaring themselves a business. 

[bossyossy]

It's great that Ebay are requiring you to register as a business!--you are taking customers from legitimate traders while not paying tax and not having to do your accounts. You are also not accepting returns--you shouldn't be allowed to sell on Ebay.

[bossyossy]

Rubbish!--you're running a business and you haven't declared your Ebay earnings to HMRC which are liable for tax

[papso22]

The only error we can see is trading from a private account.  You have no evidence whatsoever for your accusations regarding tax.  I suggest you think before you post.

[tech-tonix]

Surely, you only have to file for Self-Assessment tax if your "gross earnings" (what they are is not entirely clear) exceeds £1000 per tax year, or if HMRC gets in touch due to someone dobbing on you (Ebay or anyone else) to the effect that "we think you may fall within our dragnet" & filing a self-assessment will prove or disprove this.

[tech-tonix]

Maybe selling footware for the entire household ? A long shot really though

[returns_andexdisplay]

You have come on a business seller board complaing you are being made by ebay to register as a business when looking at your account it looks like a business and seems to be trading like a busiess. The very people you are asking for advice or complain to you are undercutting by avoiding things like buyer remorse returns which a business is required by law to offer. Display a business address and contact information. 

If you don't register correctly as a business and pay things like taxes to HMRC or display distance selling regulations you will always be looking over your shoulder waiting for a letter from HMRC or trading standards. Which could result in a fine for everything you owe, penalties etc. 

[sportex-uk]

Thanks for advice. However, this is probably the only way, and encouraged by ebay, for people to develop their activity and move their business to more serious grounds. There isn't many people who go straight to business, it's rather a process that starts with FVF promo offers, otherwise, many people would never even started it. I'm surprised ebay is not more strict with pushing people more firmly, but perhaps many would drop off at this stage.

I'd even pass you a hint in return how to get rid of £8.95 authentication fee, as I noticed you've not figured this out.

[papso22]

Ebay does not encourage sellers to develop a business using a private account.

Their published policy makes it very clear that if you buy to sell, as you clearly do, you must do it on a  business account to stay within the law. 

It takes seconds to upgrade, I suggest you either do that now, or end your listings, as at the moment every one of them is beaking consumer law.  One of the consequences of which is actually giving your customers the right to return anything,  at your expense,  for any reason, for 12 months.

[gromunglie]

Notably, in effect,

"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."

that statement informs buyers that they have the extended period of upto 12 months to return items

[messier44000]

Sitting on the fence watching this thread for a while.

Just curious. With you selling Nike products, I take it you are an official outlet / dealership ?.

Or as you put it  "I got a bunch of items to get rid of" from source unkown.

Pretty sure Nike would be wanting to know exactly where their products are being sold.

Also pretty sure they would not allow one of their dealers to  "develop their activity" first 

before deciding they wanted to upgrade to a business account or not.

[the_book_seekers]

ebay used to be much much stricter on private - business accounts. I started out selling books from my private collection. As a self confessed bookaholic I receive lots from friends and family. I received about half a dozen or so books I was never going to read, so listed them on my account one weekend as new (I'd previously only sold used). Within a week I had a message from ebay 'suggesting' that I upgrade to a business account. Fairly similar to the message you've received. I called customer services (this was when you could have a reasonable convesation with them) and was gently warned not to ignore the message if I wanted to stay on ebay. Once picked up on their radar there is no going back. I've now been a business seller for about 18 years out of 20.

Since then ebay has let things slip in this area. As I seem to remember they even gave one of their business awards to a guy selling trainers on a private account, splashing him all over the community boards. Even after this ebay still didn't pick up on this area. There has been the occassional seller pop up here to say they have been told to upgrade, but not very many at all. The free listings and FVF promotions has made it more difficult for private sellers to take the next step to business seller. Why give up free listings and FVF promotions? ebay has a culpability in this, and it is an area which has rankled deeply with established business sellers. With HMRC's new system you may be one of the first of many that will receive this message. Time will tell. 

[*knight-rider*]

`Selling new sportswear is a one-off for me, as I managed to get a bulk of items, so I consider this a temporary activity and once it's gone, it's gone.`

Doesn`t matter, buying to resell to make money is called `Trading`.

That`s like me saying i`ve just bought and sold 5 houses, made £1million in profit, but it`s only a one off, so it`s ok 🙄

if you get a bulk of items as you put it, you pay x-amount for that bulk, your clearly not going to sell the items in that bulk just to get your money back, that`s ridiculous, your obviously going to try and make a few quid, otherwise, why buy them in the first place!

[howmuchtobid]

I see you are still listing loads of brand new items whilst at the same time taking advantage of FVF promotions for private sellers.

This really is a total farce and Ebay sits back, allows it to happen whilst business sellers are paying fees of 20 - 40% a month.

What a joke.

[sheba-knows-best]

---

@howmuchtobid wrote:

I see you are still listing loads of brand new items whilst at the same time taking advantage of FVF promotions for private sellers.

This really is a total farce and Ebay sits back, allows it to happen whilst business sellers are paying fees of 20 - 40% a month.

What a joke.

---

I feel your pain but the thread is about the fact ebay is NOT sitting back but is forcing him to become a business seller. Fingers crossed, he is just the first of many...

[myriad*seller]

When you sell the first item you bought to sell, this is a busines activity, BY LAW

You must register or eBay will prevent you selling again

It is very simple

eBay also give all your sales data to HMRC who will check you are filling in your SA and that the sale figures match the figures eBay give them 

[myriad*seller]

I think OP will find that they won't be able to access any of the funds from their recent sales until they do comply

eBay have a habit of holding funds to force sellers to comply with their demands.

[sportex-uk]

Unbelievable how many people here think that if someone sells on a private account is automatically avoiding taxation 🙂 If someone is daft enough to hide significant income, that's their problem not yours. Also, keep your hostility towards ebay who allowes trading on a private account, rather than towards individuals who just benefit from the possibility.

[*knight-rider*]

`keep your hostility towards ebay who allowes trading on a private account, rather than towards individuals who just benefit from the possibility.`

That`s a typical responce from someone who blames everyone else for issues, `i was told i could jump over the cliff so i did`, `everyone else does it, so i will` 🤔