By Dan Martin

Wannabe entrepreneurs looking to earn some extra money this Christmas by trading on eBay are being urged to register with HMRC or risk a £100 fine. Accountants UHY Hacker Young said enquiries with the Revenue confirmed that any income earned from trading online will result in the need to notify the commencement of a self-employment, even if the trader is under the income tax threshold.

It is expected that thousands of casual traders will be buying and selling online in the run-up to Christmas without realising their obligations to the taxman.

Traders, those buying goods with the intention of selling them at a profit, who fail to register with HMRC are liable to a £100 fine.

Derek Levy, partner in UHY Hacker Young's London office, said: "It is unlikely to occur to the casual trader who dabbles a bit at Christmas to register with HMRC. Whether the trader is under the taxable threshold is irrelevant – and this is where people will get caught out.

"You are allowed to sell personal possessions online without notifying HMRC, but if goods are purchased with the intention of selling them at a profit, you are trading, and you must register and possibly file a tax return."

Source:AccountingWEB 1-Dec-2006.
Copyright © 2001 Sift Group Ltd. All rights reserved.

By Dan Martin

Wannabe entrepreneurs looking to earn some extra money this Christmas by trading on eBay are being urged to register with HMRC or risk a £100 fine. Accountants UHY Hacker Young said enquiries with the Revenue confirmed that any income earned from trading online will result in the need to notify the commencement of a self-employment, even if the trader is under the income tax threshold.

It is expected that thousands of casual traders will be buying and selling online in the run-up to Christmas without realising their obligations to the taxman.

Traders, those buying goods with the intention of selling them at a profit, who fail to register with HMRC are liable to a £100 fine.

Derek Levy, partner in UHY Hacker Young's London office, said: "It is unlikely to occur to the casual trader who dabbles a bit at Christmas to register with HMRC. Whether the trader is under the taxable threshold is irrelevant – and this is where people will get caught out.

"You are allowed to sell personal possessions online without notifying HMRC, but if goods are purchased with the intention of selling them at a profit, you are trading, and you must register and possibly file a tax return."

Source:AccountingWEB 1-Dec-2006.
Copyright © 2001 Sift Group Ltd. All rights reserved.