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 . 

[*vyolla*]

Yes, you need to register for self assessment with HMRC and upgrade this account to a business one. All sales on your account will be considered yours, and presumably it's your bank account that the payments are going into.

You need to declare income to HMRC once you reach £1,000 worth of sales in a tax year (eBay will be providing HMRC with your details anyway so it's vital to keep correct accounts for your tax return). You can obviously offset more expenses as a business seller, but can't offset any at all as a private one.  

To correctly 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

This doesn't affect your feedback profile or any current listings, it merely upgrades your account so that you're compliant with current consumer and eBay policy.

If you're also selling your own items, just open another eBay account (you can have more than one).

[missdollydaydream]

I suggest you do the following:

A. Upgrade your eBay account to a business account or close it.

B. Stop other people using your account.

C. Contact HMRC for advice.

[ynwauzzyx]

Can I still close my eBay account . Will I still need to register for self assessment. Because my son was buying and selling it was his bank account details .

[ynwauzzyx]

Definitely will not be allowing anyone to use my account . Lesson learnt well and truly .

[ynwauzzyx]

Will I be able to just close my account . Or will I still have to register for self assessment. Even though the money was going in to my son’s bank account . 

[*vyolla*]

HMRC will chase whoever is the account holder for any tax owed.

I don't understand how your son's bank account was able to be added to this eBay account if you're the registered account holder, because the account name must exactly match the name of the bank account holder.

[ynwauzzyx]

I don’t even use eBay but I gave my son permission he added his own details . I didn’t know he just managed to add it . Is it best to register for self assessment and close this account or change to business seller . 

[*vyolla*]

Closing the account will make no difference whatsoever.

Are you sure that your son hasn't changed the registered account holder name to his? How old is he?

[ynwauzzyx]

I only just went on it and it’s in my name with his bank details .  Is it best to change it to business seller and register for self assessment.

[game_raid]

There is no reason to close the account, trying to close your account may look like you're trying to hide something, not that it makes much difference and we know you're not but look at it from eBay's perspective, they ask for more details then an account closure gets submitted.

[*vyolla*]

How old is your son?

[ynwauzzyx]

Also it’s confusing to work it out is it 

January to December the year we work out 

or April to april .

[susapric-68]

Best to check with HMRC but last i knew about it is if it's his bank account then he needs to register with the HMRC and just explain he used your eBay account but the money was going into his account as he was running the business

[*vyolla*]

Tax years run April to April.

It will be way easier to work out a way forward if you can tell us how old your son is or, if you don't want to, just let us know if he's over 18 or not. 

[ynwauzzyx]

He hasn’t made more than a £1000 in profit in the tax year has only sold more than 30 items 

[ynwauzzyx]

16 going on 36 😢 

[susapric-68]

Still best to register as he has been buying to fix and sell so would make his a business. On that amount he would not pay any tax and would have the option to pay voluntary NI but he does not have to pay that. Self assessment online is quick if he takes the quick option and just declare his inc and outgoings. It's not uncommon for someone to run a business on someone elses account due to some people not having the required docs eBay would ask for. Edit. As the ammoutn is low he might not even have to declare it so it's best for him to contact the HMRC and see what they say, he needs to get the focus of your account as it could look like your running the business

[ynwauzzyx]

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

[moldosgifts]

@*vyolla* has asked several time to share your sons age, it is not a nosey question is is quite important, if he is over 18 please repy to @*vyolla* .