New TAX RULES

[providers_123]

Hello , im unsure about the new tax rules because im self employed and things usually go from April to April . I dont have any disputes about the new tax rules but i really dont know what they mean . The fiscal year and profit allowance is £12,000 and at the end of the fiscal year the tax bill gets paid with NI .

Are HMRC asking for monthly payments just like PAYE ?? Or is it a yearly calculation to add up and record everything thats being sold on Ebay for an annualy tax bill . If it is everymonth are self employed people going to get a tax rebate eventually ?? It seem like alot more paper work . Please explain ...... Im at the stage of literally about to open up my ebay shop for selling laser engraving products , I have waited till after Christmas to do so and im unsure what im getting myself into . There is usually no mention of changes on Ebay it just happens . 

[papso22]

There are no new tax rules, there are new reporting rules for digital platforms.

You need to do nothing different to what you are doing as far as tax goes. 

However,  you will need to trade from an eBay business account and add those sales to your other self employed earnings.

[cobwebcottage]

The new rule will not make any difference to the self employed. It just means that Ebay will send your sales figures to HMRC  which will match with your self assessment so you will pay tax and NI as normal.

[*vyolla* · Accepted solution]

You need to upgrade your account to a business one and then start selling.

The tax year still runs April to April so, if you start your business now, you'll be declaring sales from Jan, Feb, March 2024 on your next self employed tax assessment, which will be for the 2023/24 tax year. This assessment will be due by Jan 31st 2025.

I'm not sure where you're getting the monthly payments thing from?

[providers_123]

Thank you , thats helpful information , i just have to be sure .

[ross0708]

To confirm - HMRC require all sellers registered with them to also be registered on local sites? 

[providers_123]

Thank you , there is alot of bother about the news recently . Just making sure about it .

[magpiecorner1]

You normally pay after the end of the tax year, in two parts, even though you can end up paying forward, it is still always a fair bit behind paye payments, although that might change in the future. 

If though you are paying PAYE as well as self-assessment, under certain conditions you can pay your self assessment through your PAYE.

Worth having a good read through self-assessment on the HMRC website, I think you can also get access to past seminars too - there are some excellent ones.  Put aside a day, well worth it!

[providers_123]

Bringing things upto date , much appreciated information . Shall make time for it , thank you .

[papso22]

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@ross0708 wrote:

To confirm - HMRC require all sellers registered with them to also be registered on local sites? 

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No, that is not a tax requirement.