Taxes

[gymes_0]

I know I won't be a favourite on here so I've created an anonymous account. I went on but after reading a few posts from others, I was reluctant to write from my account. But I need some insight.

I have a couple of private selling accounts that I've sold from. Before  October, I still paid fees and such so I wasn't without any fees. But that's not my question only adding that my private account wasn't free historically. 

I received the email that so many are talking about with upgrading and HMRC. I am thankful that I have been reporting my information to HMRC to date. I just wasn't a business on eBay. Those reasons I know a d I know that you'll say I should have known. So I can only say I'm sorry for the mistake. So my ebay accounts aren't business. I guess that many people are in this predicament and HMRC doesn't care about Ebay business accounts because they want numbers for sales. 

But from the many times I've done my taxes my sales and my end report numbers are not the same. This is true for everyone. We pay ebay fees. We pay postage. We pay for packaging. We pay for expenses. So when ebay sends this to HMRC I am curious how this tallies for them. This is genuine curiosity because some people do business with low end postage costs but high sales. They may sell a watch for £50 but their postage is £5. Or someone may have an item that is £40 but their postage is £20. They get £60 but they only net £40. Or people do free postage but pay for postage out of the price. Some people have storage costs and others don't. The question is that if I have sales of £20k but I have expenses of £10 because I pay for storage or I pay higher postage costs for bulky items or both, that isn't reflected in the numbers sent to HMRC by ebay. I know that all of these parties know that expenses have to come off but without an individual guide to each type of seller and sales, how can they gauge this? Are they mostly interested in the fact that people who are selling on ebay are also doing their taxes? So Jane Smith says she sells online and she reports on her self-assessment. Tick. There are so many people who sell at a loss. So many who sell with little profit having total sales of £5k and only making £1k. And so many who sell with a moderate or great profit after expenses. This is normal business situations. 

I just don't quite understand how this works or is working for it other than to catch people who don't report at all because it would be hard to reconcile. And if people sell on more than one account probably more so. Perhaps I am not understanding something. 

I saw another older post about NIN. I haven't given ebay my nin ad they haven't ask

ed for it.

I just don't understand so much with this new change and what to expect or what they want from me. I know eBay wants me to upgrade so I know that lart. I do my self assessment and pay taxes. But I don't understand how the information to HMRC connects to mine. I have three accounts I work from because I sell different things. They have to connect those to me a d my self assessment. They have to calculat

e reasonable expenses. 

[jckl1957]

I am sure that HMRC has extensive experience in dealing with the taxes collected from Ebay sellers.

That is why, if you a business seller (irrespective of whether your Ebay account is business or private) you should complete a self-assessment form.

I would assume, although I don't know, HMRC will compare what you tell them with what Ebay report and will be able to see if the figures are broadly similar.

So, if you have been completing your self-assessment accurately and honestly, then you probably have nothing to worry about.

[*vyolla*]

A business account can offset expenses, if you're trading from private accounts then I don't see how you can claim to offset expenses against profit.

[gymes_0]

It would seem that way but it's still a bit scary. It feels like being audited without being audited. You don't always have to do something wrong but being viewed over your shoulder can feel a bit scary. 

No one wants to bring attention by HMRC to thier business. I don't mean they are doing illegal things. But going thru the process is still scary enough to want to avoid. I don't know as I don't run other people's businesses. but it could be scary for someone who correctly has a lot of expenses for example. How does that compare to other people in terms of being reasonable or not. I don't know if any of that makes sense.

[gymes_0]

I don't understand your answer. There are expenses like fees or postage to name two.  No one would be paying taxes on gross numbers. 

[gymes_0]

I have anxiety so new things or uncertain things were I don't know how things work is usually hard on me. I am a worrier. 

[jckl1957]

It is not about bringing the attention of HMRC to your business; it's about staying within the law.

You state: 'I do my self assessment and pay taxes.'

As I said, as long as you have completed your self-assessment fully and honestly, you should not have anything to worry about.  The fact that Ebay will be passing your details on to HMRC should not be a concern.

If you have been trading on Ebay but not declaring your sales to HMRC, then you perhaps need to speak to an accountant.

We are other members, not tax experts.

[gymes_0]

Is it odd that I've not been asked for a nin? Only to change my account to business.

I do my taxes but some people are like me were you worry about how things are seen or if you make a mistake. Anything. I guess we are not all confident people. But even with feeling like I've done the right stuff all along I still don't want the anxiety of being reviewed. Prooving you did it right still isn't a nice situation.