EBay asking for national insurance number

[raik1performance]

Hi everyone, I recently joined for like 1 month and I start selling as a private seller , and now eBay is asking me to provide national insurance number.

"New UK digital sales reporting legislation requires sellers with 30 or more sales, or who have sales exceeding £1740 in a calendar year, to register this information"

[dazzio-music]

When I found out about the free selling fees for private sellers, and the Buyers Guarantee fee that is added when people buy from a private sale, I looked into it, and found that I should be a business seller.

I thought I was, as I had a shop subscription.

Ebay said I don't need to register as a business or sole trader with hmrc. It's my choice. I understand my sales will be reported to hmrc once i reach a certain amount. Which is fine. hmrc also say I don't need to register unless I earn a certain amount.

So, I switched to a business account. My bank is on hold while they verify it (even though it's the same account), which is an inconvenience, but I suppose is fair enough.

I'd rather change to my business bank account. But as it's not a bricks and mortar account, they won't allow it.

I'm not sure what my next step should be. They are asking for my NINO. I run a business with my wife, and I don't want it to be combined.

I don't mind if I have to pay taxes etc. on my sales. After all, if I have to pay tax, it means I'm doing ok.

But, I'd like to keep it separate to the other business.

When I log onto hmrc, it tries to combine it into one business UTR. Can I keep my ebay separate?

It actually works out cheaper to run as a business, with a shop subscription, on ebay. And, then pay taxes when it gets to that point.

I'm not trying to avoid any tax or payments etc., I'm trying to comply, but want to keep it as a standalone business.

Any advice please?

[edwardian-dreams]

If it’s a ghost town as it is factually now then what’s the problem lol

[papso22]

If you run a business with your wife you are presumably in partnership with her and registered as such with HMRC, you will then have a partnership UTR.  That won't be either of your NINOs.

Partnerships need to keep records relating specifically to that business and for income tax  purposes each partner is taxed on their share of the profit arising from the partnership.

Many people who are in business as a partnership are also in business as a sole trader,  HMRC will be used to that.

[papso22]

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@edwardian-dreams wrote:

If it’s a ghost town as it is factually now then what’s the problem lol

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Because eBay being a 'ghost town' is not a fact.

[dazzio-music]

hmrc doesn't allow to separate my business as a sole trader. It links me to my partnership business, and says I already have a UTR and must be entered into that for tax purposes.

I'm trying to do everything above board, but it's making it hard for me. Ebay doesn't help either. Ebay is blocking all my payments. Even ones that already exist.

I might just have to close my ebay account, and call it a day. It's a shame that ebay has come to this.

So frustrating.

[moldosgifts]

I know mine too also my ex wife's and my current wife's now that's sad and old 😀

[ett1954]

Without knowing your personal details of your business, which I wouldn't advise discussing on a public forum like this, no one on here can probably give you the advice you are looking for.

Have you contacted Citizens Advice?  They often have advisors trained in specific skill sets or may be able to fix you up with a free 15 minute consultation with an accountant.  If they can't help contact a local accountant; they should be able to help; probably for a fee.

[4_bathrooms]

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@dazzio-music wrote:

When I log onto hmrc, it tries to combine it into one business UTR. Can I keep my ebay separate?

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The digital reporting thresholds have nothing to do with your tax position nor your self-assessment reporting obligations. eBay just requests the type of tax identification number (NINO, UTR or CRN) that is relevant for the eBay account and business type from this table once one of the thresholds have been crossed.

Simply put you just need to provide your NINO as requested.   

[chris.n7]

"Add your tax information to your account to get compliant with UK digital sales reporting legislation, and to avoid upcoming restrictions."

So what are these upcoming restrictions? Payments on hold? Unable to list? Can't see them listed anywhere.

[equinox-electronics]

Payments will be put on hold if you don't put in your tax information ( NI number )

And probably lose your account if you dont comply 

[dazzio-music]

Will ebay send all of my sales from previous years? I hardly make any money. It's more of a hobby, but earn a little money on the side. I suppose that's the definition of a side hustle.

I don't want a battle with hmrc about how much I owe etc.,. it just takes the fun out of it, and would mean all that time was wasted.

For me, my money comes from other sources, and if I have to pay a chunk in tax, it's probably all of my profits gone, maybe more.

I might just close up, and call it a day.

Over the last 6-8 months I've been paying ebay £20 -£30 per month, for a hand full of sales. I've actually lost money during that period. I just can't be bothered anymore.

The last two weeks, I sold three items, priced between £1.80 and £11.

[papso22]

The new reporting requirements are for sales from 1st January 2024.  If HMRC asks then ebay will go back further.

[kath3735_wxmjn]

it also depends on what your 'other sources' of income are because all online sales platforms are going to have to do the same, hand over your info to HMRC.  I believe it also includes things like Air B & B and Uber taxis etc.

[jckl1957]

Initially,  Ebay will send your sales from last year January to December 2024.

You will be able to see what figures have been sent here:

  https://www.ebay.co.uk/mes/transaction-reports?q=tax

Ebay will provide you with your Digital Sales Report once it has been generated and sent.

You are a business and so may be liable for tax.  I am assuming you don't submit tax returns for your business otherwise you wouldn't be worried about a battle with HMRC.  In, my (completely non-expert) opinion it would be a good idea to get relevant paperwork together so you are ready if they do get in touch.

[ett1954]

@dazzio-music   Hopefully the following will put your mind at rest.

eBay will inform HMRC of the total amount they have paid to you.  You should from your records be able to roughly calculate this yourself (this should include all monies you received (including postage etc.).  Once eBay send this information you will receive a confirmation report as mentioned by @jckl1957 

Remember HMRC will be looking at reports from any other digital platform you sell on (Amazon, Etsy, Vinted, etc).

If your total combined income from all platforms you sell on comes to less than £1,000 you don't need to do or worry about anything.  If you are contacted by HMRC, which I doubt, the worst they can do is ask you to confirm you are not selling anywhere else or ask you to complete a self-assessment.  On the self assessment you can simply tick a box to claim the £1,000 traders allowance and that will be the end of the matter.  If you ever go above the £1,000 income allowance in any financial year you are required by law to complete a self assessment.  This does not however mean that you will be required to pay tax; that will depend on your overall income situation (salary from other employment, interest on savings, benefits, etc., etc.) in relation to your tax allowance.

Looking at your sales and listings you appear to be the epitome of a very small business seller with regard to eBay and unless you have sales with other digital platforms I don't think you should worry yourself about this; and credit to you for being correctly registered as a business.

[vinylscot]

Eve Williams, eBay's UK "General Manager" had an opportunity to emphasise the difference between business and private accounts recently. Instead, she said

"...hopefully we will help these side hustles grow into fully fledged small businesses”.

This irresponsible wording, I believe, is designed to reinforce the idea that it's OK to run a small business on a private account, as long as it's not a "fully fledged small business," whatever that is.

How stupid can you get?

Quote is taken from the "Selling Announcement" dated 14th March in my Seller Hub.

[ett1954]

""...hopefully we will help these side hustles grow into fully fledged small businesses”. - From HMRC's website (my bold):

From online selling to delivery work, there are lots of ways to make some extra cash outside your main job.

You might not think of it as a business, but your side hustle might count as ‘trading’, which means you might need to tell HMRC about your earnings.

Choose the option below that best matches your hustle, and we’ll help you:

• understand the tax rules that apply to you
• check if you need to tell HMRC about your extra income

Get help with your hustle, and avoid any tax surprises.

This is basically HMRC's 'definition' of a side hustle.  It would be interesting to hear her definition after a comment like that.  "fully fledged" ?  The definition of a business is governed by HMRC's badges of trade.