Account upgrade worries

[thevsestoreuk]

I recently started selling in ebay as a private seller and got a mail from Ebay yesterday requesting for my NI which I gave, my earnings including postage is less than £1000, I gave my my NI and expecting a mail or notification showing my payouts can now be received, I'm worried that I'm not registered with HMRC yet, does this affect my account, what's the next step to take, I've been so worried, can't get my payouts because they are on hold and I'm scared to send out my pending orders too

[arkwebus]

There is absolutely nothing to be worried about.  Your money is safe with eBay!

If you are not selling as a business [and only you will know] then you do not have to register with HMRC.  I note - as an aside - that the word "store" appears in your ID!

If HMRC do contact you [and for small sellers I doubt that will happen] then you "simply" have to convince them that you are not selling as a business.  Examples of business are "making things to sell"  "buying to resell at a profit".    In the end any tax to be paid is based - not on selling price - but on profit.  If you are in business then you fill in a self assessment return with any wages from normal job plus any profit from "self employment".  Any tax may even be paid through your tax taken of any "day job" or pension.    @thevsestoreuk 

[jckl1957]

You do need to upgrade to a business account.  This is a separate thing to any tax liability you may have.

Your sales for this year already look to be about £1000.  The 'trading allowance' is for sales, not necessarily earnings.

If Ebay pass your details to HMRC, they may get in touch so get your books in order.  Personally, I think a letter from HMRC would be more worrying than having to wait for payouts.

[thevsestoreuk]

Thanks for your response, I intend to start selling as business but still
haven't crossed the £1000 threshold, do I still need to register with HMRC
before earning up to £1k?? And I sell my used items and that of my
immediate family on another platform, will HMRC raise an eyebrow as regards
my earning from this other platform? It's not a lot of money and I do not
work elsewhere, I'm a mom of two babies so aren't working for now

What's your advice please

[thevsestoreuk]

What would you advice that I do now please??

[jckl1957]

Upgrade to an Ebay business account.

The amount you sell is irrelevant.  If you buy items to sell, you need a business account.

I can't give you tax advice.  I don't know what your circumstances are - for example, if you claim any benefits or use your tax free allowance.

Update any records you have of purchases, stock and sales.

Contact HMRC and ask them for advice.

[rainbowtrax]

The £1,000 trading allowance is based on turnover before expenses, not on actual earnings/profit, so it looks like you've already passed that point so need to register for self-assessment with HMRC. But if you've only recently started selling then you're still well within the allowed timeframe for registering for self-assessment so it's absolutely nothing to worry about. Just let HMRC know then make sure you keep records and receipts so that you have all the info you need when it's time to file.