Are there any requirements to sell stuff on Ebay?

If i sell stuff on Ebay and get like £300 a month in cash am i supposed to declae this to DWP?

  • Subject: if i sell stuff on Ebay and get like £300 a month in cash am i supposed to declae this to DWP? my friend had a cosmetic and perfume shop as she was declaring herself insolvent and didn't want baliffs to take her stock so she sold her entire stock to me for £1500 cash in hand. I have about £15000 worth of goods in my garage and i am selling it on Ebay to make money. am i supposed to declare this or would that be totally stupid idea? i was looking at other peoples Ebay and benefit related questions and a few people said you can sell stuff if you have a personal account and not have to declare. yours truly VERITY

  • Answer:

    You are buying stock and selling it for a profit. That's a business. You are liable for tax on your net profit (profit less expenses). If you do not declare it then you are evading tax which is illegal. It's up to you whether you declare it.

Veritys fun house at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

Of course you must. Morally and legally. Don't forget the Inland Revenue.

Ebay will demand that you change your account to business once you are up and running, and paypal will warn you that your sales total is sent to Brussels. Whether you declare this to DWP is entirely up to you, if you get a part time job, then you will no longer have to declare it as your benefits will stop. And people like me would be unlikely to report you. Whereas if you are getting benefits then I would gladly report you if I was a neighbour. I pay for you to live, you would not vote for me because I would stop all benefits. But good luck to you selling the stuff on Ebay, it is not easy as there are so many doing it, but if you make a good turn good luck. You will get a notification from Paypal when you have transferred a few hundred £s, telling you you can only transfer x amount more in the next 12 months, that is the point at which you will find they have picked up on your sales.

JohnnieAstro

Just some advice - your friend commited fraud, then she sold it for cash, as I assume she did not declare the money then thats income tax evasion Both of which are criminal acts. (she may well have problems later accounting for the missing stock. Presumably at some point she bought it - this should appear on her books, As she no longer has the stock there should be something in the books showing when they were sold. So at some point she bought it, but nowhere does it show she sold it. So where is it ?) And you aided an abetted her. As for e-bay If you sell goods by way of business then the income must be declared(however as a business its only the profit thats declared ( i.e you can deduct the cost of the goods, but you would have to have receipts for the original purchase) If you sell goods just as an individual then you dont have to declare it (its just like selling anything else on e-bay)

Who

You can check on this but any income should be declared. Some of its non taxable but still should be delcared. Most tax guides will tell you which ones to declare and not and how much

YoYokiller

I believe so - this is called income.

Empress

Tricky as far as I'm aware. You can sell your own personal belongings without having to declare, that is the whole point of e-bay. However, you are a business, and e-bay don't like that. So, although you don't have to declare, they may cease your account. I knew a woman who had a lot of baby clothes left over, gifts and whatever that babies grow out of fast. She sold these, and e-bay froze her account thinking that she was making/knitting them, and selling them as a business. Be careful. See how long you can sell for before you get caught out.

Ryan L

If you have bought stock for resale (and you clearly have), it's a business and you need to declare it. The type of ebay account you have (personal or business) is irrelevant.

Jo W

Your initial deal with your friend is as illegal as your tax avoidance on your profits. If you are also claiming some benefits you are breaking another law.

John D

Your friends Buisness: If you helped her commit fraud, then you are in trouble. (which as you 'knew' what you were doing and why - you were) if you simply bought the products in a 'sale' and your friend declared ALL of the money you paid her as a sale, and that 1500 is now shown as a proper sale and paid into the company (at least 'as far as you know') then, you are fine. It is no different than selling to any 'business' that buys up liquidated stock. It does depend on how honest your friend is being in her books. You selling them on Ebay: You are now working. Any profit you get from selling (i.e. over 1500 that you paid out), is now income. All income has to be declared to UK tax and yes, to your DWP benefits. however, DWP measures hours worked (less than 16), not strangely how much you earn (though they do measure your savings... so indirectly they could). You could work 1 hour, earn and spend 1000 and it would be less impacting that working 20 hours and earning 100 pounds !! So.. are you now keeping this money ? or are you now 'sharing' with your friend.. creating a second business... out of the first's stock.. .that is getting very close to fraud again. 'She' needs to talk and be honest with her accountant to make sure she is on the right side of the law, and you don't get dragged into it. If you do, the time you spend answering questions will be compensated, and that will not be time you are "looking for work" (will it !) Be careful, very careful... ;) and make sure you friend does the right thing. Ebay: sell 5 - 10 things one time, that you 'over purchased' and no longer need, no problem,. sell 100 things, and you will get their attention, and be considered a 'business' until you prove you are not. And, you are technically a business, by deliberately buying and then re-selling items (however many).

Andi

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.