Turn in to Business account

[simoes-little-corner]

Hello guys, i have a question that i can see the answer, i want to turn my private account, in to business account. 

But i dont have HMRC

When me open the Business account do i need to do Anything after that? UC or HMRC ( Take in mine i dont think i will pass the 1k mark...

I dont want to go full self employed in the beginning 

[therenewalworkshopltd]

If you plan to trade, then once you reach £1000 in turnover, you have no choice but to register with HMRC.

As such, then you should start with the business account.

I strongly suggest that you go visit the HMRC website and understand it first.

Understand your costings etc, before you start to trade.

Try to have a plan of exactly what your going to be doing.  What you will be selling and so on.

Look at opening a separate business bank account, not necessary at all, but makes things easier.

Understand how you will record your accounts.  A spreadsheet works, but you need to have a basic knowledge of what needs to be recorded etc.  Some business bank accounts do come with free software.

[simoes-little-corner]

Then i can now turn my account in to Business account , and then ONLY when i am close to £1000 then i will register on HMRC ..

Till then i just turn my account in to BS and sell normally. dont need to worry about nothing else... ( I Understand about HMRC just dont know if i can turn the account in to BS and sell till 1000

[simoes-little-corner]

Or do I just sell on Private Seller account, till eBay or reach £1000 ( Then turn Business Account )

[therenewalworkshopltd]

If you are trading, then you need a business account.

It you are not trading and selling off your own personal items, then you use a private account.

There really isn't an in between.

[simoes-little-corner]

If you are trading, then you need a business account.

OK, but if i don't cross the 1K/year  i don't need to report nothing? or do i

Just scared that after selling in Business account i need to contact HMRC, ( only after 1k

[therenewalworkshopltd]

You need to go to the HMRC website and read up about starting a business.

It tells you exactly what you need to do there.

You can literally be told all sorts here, but you will get the facts at HMRC.

You also need to be aware, that Ebay will report your sales to HMRC anyway at the end of the year, whether they are private or business.

Read this as well.

https://community.ebay.co.uk/t5/Announcements/Supporting-side-hustlers-HMRC-to-raise-threshold-for-s...

[simoes-little-corner]

 Let me get str8 ( If i turn the account to BS and do not sell over 1k i dont need to worry about nothing ( HMRC )

And only Because i have a BS don't mean i am Self employed ( 1k Rule )

Just mean i can sell anything not line private account 

[therenewalworkshopltd]

The £1000, is in total.  That includes your postage and sales cost.

Trust me, it doesn't take an awful lot to get to that figure.

You need to go read the HMRC stuff about this.  If you don't, you are likely to get yourself into trouble.

You should not be relying on what you are being told on a forum.

[the_book_seekers]

It's not just about HMRC. Business sellers have consumer legislation to abide by that don't apply to private sellers and on ebay that means having a business account. Also is you're selling or intend to sell to the EU business sellers are required to conform to GPSR (General Product Safety Regulations) which are a real pain.

[magpiecorner1]

No sure you are correct there - but then again, I'm not sure that there is a defininitive answer.

HMRC do not require you to register as a sole trader if your turnover is under £1000.  All that is required is, if you do a self-assessment submission, you tick the box confirming that your turnover has not exceded £1000.  Indeed, they don't require registration as sole trader until the October of the second year of trading. 

The online selling rules APPEAR to require that you meet all the requirements of a business if you are trading.

What is needed is a definition of TRADER!  One that can't be argued or mis-contrued, leading to conflicting advice!

[therenewalworkshopltd]

Which is why I included the link to the new changes and said several times, to go look at HMRC and not trust what your told on a forum.  🙂

[61stephenuk]

https://www.legislation.gov.uk/uksi/2008/1277/regulation/2/made

“trader” means any person who in relation to a commercial practice is acting for purposes relating to his business, and anyone acting in the name of or on behalf of a trader;

https://www.legislation.gov.uk/uksi/2013/3134/regulation/4/made

“trader” means a person acting for purposes relating to that person’s trade, business, craft or profession, whether acting personally or through another person acting in the trader’s name or on the trader’s behalf.