Registering with hmrc

[tas_services-2009]

So I have seen we have to register with hmrc if we sell over a certain amount. So what does this mean in terms of what we pay, how we pay, when do we pay etc. I have bought and sold a few bits and have not really dealt with tax man have always had it done for me by employer so just wanted some advice on weather it's worth doing or just shut down my ebay and stop. 

[jckl1957]

What do you mean by you have to register with HMRC?

If you sold more than 30 items, or items to the value of about £1700 last year (January to December) Ebay will report your sales and send your details to HMRC.

Ebay will ask for your National Insurance Number if you reach those limits.

Then, HMRC may contact you.

If you are selling your own personal posessions, you don't have any tax liability.

If you have been trading, buying items to sell, then you may be liable to pay tax.

There is lots of information online and the HMRC website.  I think looking at HMRC 'badges of trade' will help you decide if you may have to pay tax.

[rainbowtrax]

If you've been trading, which it looks like you probably have, then ending your listings won't remove any tax liability that you already have. Nothing has changed regarding when you should have been submitting a tax return.

If you were just selling your own unwanted items then there's nothing to declare and no tax due (aside from capital gains tax if you had sold a single item (or a collection as one lot) for £6,000+).

As a trader, you don't need to register and submit a tax return if your annual turnover (not profit) is below £1,000. £1,000+ and you should be registered but whether you actually have any tax to pay will depend on your own circumstances.