Question regarding claiming tax on Ebay earnings

[Rolypoly]

Hi there.

I've had a quick search to see if I can find what I am looking for, but unfortunately I havent stumbled accross it (possibly because I dont really know how to describe it).

I am in the process of planning on registering with Ebay as a Business seller, but as im new to the business and self employment world, Im not quite sure on certain issues regarding the HMRC and claiming tax on my earnings.

The situation is that what I have projected my short term profit to be on my Ebay Business is fairly low, with figures of around £20-£50 a week estimated. This is ok for me, as the reason for wanting to start the Business is to help me during my next 2 years at University with helping to pay for bills, along with my current part time job.

As stated I already have a part time job which is far below my £8100 personal allowance, and combining my part time earnings with my estimated ebay profit for this year, it would still be under the allowance.

The question is, Do I still need to contact the HMRC to register as a soletrader and tell them I have started an Ebay Business, even though Im not entitled to pay tax, or can I just start power selling without contacting the HMRC until I forsee that I will earn over my allowance?

Thankyou in advance, and sorry for my complete lack of Business sense.

 

[AbsolutNut]

Hi,

Best to register as self employed. You will be required to submit a tax return for this tax year 12/13 January 2014. If you earnings are below the tax threshold you will put this on your tax return and no income tax will be due.

Anybody operating a business online or offline must register with HMRC in the UK.

Steve

 

[Fred_the_frog]

I think you will still have to register even though you won't need to pay tax. I don't know where you would stand with national insurance though.

There is a member on here called Scalloway and he is pretty good with this kind of stuff.

 

[Scalloway]

You will have to pay Class 2 NI if your business profit is more than than £5,595. As has been said above you are better to register for self employment as eBay seems to be in HMRC's sights at the moment. If your expected profit is likely to be less than £5,595 you can apply for an exemption from Class 2 NI.