Hmrc

[ynwauzzyx]

Hi all

My son has been using my eBay account to sell with my permission however I wasn’t monitoring how much he has actually bought and sold . To keep him out of trouble and at home he kept busy with buying phones getting them repaired and selling them , Because we have gone over the threshold of selling more than 30 items or over £1700 i have got the message saying I need to update my account . My son has mostly bought off eBay and sold on eBay how much tax will we be liable to pay ? I already work and earn just over my personal allowance . Do I need to register for self assessment. Any help will be greatly appreciated . 

[susapric-68]

Always best to run a business on a business account but the main thing is for him to contact the HMRC and find out first before doing anything. The amount is low and his age could have it all put down to a hobby

[*vyolla*]

Well, he's entrepreneurial, which is something to be encouraged and making a decent bit of money, but at 16 won't be allowed to have his own eBay account. I wouldn't discourage him from doing this, but perhaps ask an accountant if there's a better way forward here. 

Worse case scenario is that HMRC may get in touch with you and ask about your sales, but if he's made less than £1,000 he's not obliged to complete a self assessment anyway,

Moving forward, the account will need to be a business one.

[ynwauzzyx]

16 going on 36

[ynwauzzyx]

Sorry I thought I replied 16

[chlo.mh0104]

They have replied saying he is 16 if you read the replies 🙂

[missdollydaydream]

Is it best to leave the account as it is or register as a business .

c£5900 in sales this year! You can't leave it as it is. 

[susapric-68]

Nothing stops you converting this account to a business so accounts are separate and then opening another private account which you can use for yourself. That way all his buys and sells are on one account away from your buys

[moldosgifts]

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@chlo.mh0104 wrote:

They have replied saying he is 16 if you read the replies 🙂

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I do but if a reply comes in whilst i am typing that cant be helped can it!!!!!!! 🙄

[chlo.mh0104]

I meant no offence, the eye roll emoji and excessive exclamation marks were not necessary. 

[suelel1968]

There is the right thing to do if he is going to continue and what you can do if he stops. 

Neither of you will pay tax on less than £1000 sales. He would not pay tax until he has used his tax free allowance. You should however register for self assessment and tax will work out at zero. 

If he is not going to continue, for ease you could upgrade that account to  business one to satisfy EBay and open another private account  for purchases and non business sales.

If he wishes to continue and you let him (he shouldn't and i think ebay are very unforgiving with rule breakers) and the fees as a business seller might make it untenable for such low sales.

But don't sound so panicked. They are just prompting you to register correctly. Remember there is no tax to pay and your son was providing himself with valuable experience. 

Vinted is over 18 as well, but there is no verification and no business model to upgrade to. Just saying..... Richard Branson was not whiter than white when he started out and no one cares now..... Good luck to him. 

[ynwauzzyx]

Thank you so much . I’ve made my son delete all

his active listings . He won’t be using my account to sell . Do I still change the account to business and register for self assessment. 

[ynwauzzyx]

We have a lot of crime in our city i just wanted him

to stay out of trouble it’s my responsibility I should have monitored .

[ynwauzzyx]

His payout is £5200 last 90 days 

but he’s spent over £4000 on buying the phones  and repairs so it’s just over £1000 profit .

[*vyolla*]

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@ynwauzzyx wrote:

We have a lot of crime in our city i just wanted him

to stay out of trouble it’s my responsibility I should have monitored .

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Honestly, kudos to him for being so entrepreneurial and managing to effectively start a small business, I wouldn't knock it and I would encourage him to continue, just make sure that he keeps accounts. You have a smart one there!

[ynwauzzyx]

Thank you .🥹

[ynwauzzyx]

Hi I’ve tried to upgrade to business account but I can’t find any options . Is this because I’ve provided my ni number and they are waiting to verify my details .

[smartsgaming]

I have been advised to as well and also cant find out how anywhere so I didnt bother. 

[ynwauzzyx]

I thought it would be straight forward . Did you register for

self assessment.

[smartsgaming]

I already was registered as im self employed. If you find out how to switch to business account let me know. 

[*vyolla*]

You need to use a desktop browser, not the app, then to register as a business seller simply go to your Personal Information in your account and to the right of Account Type, which will be showing as 'Individual'  you'll see an Edit option.

https://accountsettings.ebay.co.uk/profile

@ynwauzzyx

@smartsgaming