Help with ecommerce start up

[xhale2007]

Morning all.

Just registered on the site, after being directed this way via a few friends.

I have recently set up a small online business, using a website, and ebay.

I need to register as self employed i belive. I also work full time as an employee.

I am a little concerend as to wether it is worth me continuing the business, as its currently making very little money. Its growing each month but we are talking £s not £10s.

I have had a read up on the process of being self employed, but tbh, it confuses the hell out of me.

I already pay a large amount of NI, so do i still have to pay anything as self employed? How much would i get taxed??

To give an idea of the figures im talking about, i spent roughly 1200 on stock and website/paypal/postage fees etc so far, and i have returned 800 from sales.

I know its pretty irrelevant, but in the 3 months i have been selling via ebay, i have made approx £120 profit on the items i have sold (after all fees etc per item)

Any help would be greatly appreciated. I know i am a fool for not registering, but tbh, i didnt really understand what i have had to do, and i need to get it sorted.

Thanks!!

 

[adam391]

Hi,

You may find this guide from the HMRC useful http://www.hmrc.gov.uk/startingup/index.htm

I found most of the government help for small business really useful.

 

[xhale2007]

Hi, thanks for that link adam.

One thing im a bit confused about is national insurance still.

As it stands, based on current sales, i expect to turn over between 4000-6000.

With regards to the lower earning for NI, i read that income must be under £5000. Now is that classed as gross income (turnover?) or net profit? (i work full time as an employee paying loads of NI btw)

Also, what is my best option, using my home as my address for selling from, ( i belive i then have to inform mortgage people etc) or could i store my stock at my parents business address and use that? Would i then have to pay anything etc?

This is all so confusing, and for such little profit at present, it doesnt seem worth all the bits ill have to pay out :/

Thanks for all the help, its majorly appreciated

 

[asarelove]

find out from you from the bank if you pay extra for building and cnt & insrc. if you hav to pay extra, compare the price to what a storage warehouse will charge and dcide which 1 to use

 

[eBaySpecialist]

There are ways to cut the amount of fees you pay to eBay. Listing strategies, good listing policies etc.

How many products do you list, have you got an eBay shop?

You have to add your geographical location to your eBay listings, currently at least 'one click away from your listing, but as from April it needs to be via the show business details tick box in preferences. New eBay rules from next month but has been UK law for some time under EC DSR regulations. I'm sure there are some legals around here to advise you more in depth on that.

Hope this is a little helpful, a bit vague

 

[xhale2007]

Thanks for the info guys.

I currently list 47 items on ebay, and use the basic shop package. Works out to save me nearly £10 on my listings a month, so im paying 4.99 for the privelege of the shop itself.

What other ways can i save money on there?? Thanks

Dan

 

[adam391]

Hi,

The best place to get the tax advice is the help line in the link I sent you http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm

HM Revenue's help lines are really good. Just ring them up and they should be able to give you the answers you need.