HMRC Tackling Online Traders

[coomber]

Seems that people who trade online are latest target of HM Revenue and Custom.

Don't think this will apply to most people on here, as there's no intention to make a profit, and no real buying of items purely to sell on, but there's at least 3 on here that I can think of who would definately be considered as trading, given the frequency of their selling, and them buying bikes to split and sell immediately.

Full details here:

http://www.hmrc.gov.uk/campaigns/emarket.htm

 

[was8v]

Provided tax returns are completed correctly, everyone is fine

HMRC likely won't waste resource on the small fry (unless specifically 'tipped off').

 

[coomber]

Provided tax returns are completed correctly, everyone is fine

HMRC likely won't waste resource on the small fry (unless specifically 'tipped off').

think that's the point though mate. Must be a lot of people not aware they should be returning this information.

 

[1duck]

don't forget you have something like a 12k or is it 15k limit, i doubt people are going over that.

This is aimed more at ebay traders who are selling hundreds of thousands of pounds a year and not declaring.

 

[barry2017]

They let Vodafone off with not paying £3 billion last year. I'm sure they won't mind if I don't bother paying, right?

 

[NAILTRAIL96]

The thing is HMRC have in recent years been targeting specific groups and prosecuting "smallfry". It started with the trades a couple of years ago and worked it's way round from there.

They figure nabbing one and making an example of them in court will persude hundreds of others to be honest and declare in the long run.

Even if you make £100 profit and it needs no tax paid it must still be declared.
Also bare in mind that your wages take up your tax allowance, so any extra is taxable.

 

[was8v]

don't forget you have something like a 12k or is it 15k limit, i doubt people are going over that.

Personal allowance this year is £8105: http://www.hmrc.gov.uk/rates/it.htm

Even if you don't have enough income to go over that, you still have to declare it all via a tax return.

 

[ratbane]

IR

The thing is HMRC have in recent years been targeting specific groups and prosecuting "smallfry". It started with the trades a couple of years ago and worked it's way round from there.

They figure nabbing one and making an example of them in court will persude hundreds of others to be honest and declare in the long run.

Even if you make £100 profit and it needs no tax paid it must still be declared.
Also bare in mind that your wages take up your tax allowance, so any extra is taxable.

I have a mate who is an accountant. He reckons 95% of tax "evasion" is carried out by 5% of the population. The thing is it's easier for IR to target Joe Bloggs, as he usually cannot defend himself. Makes it look like IR are actually doing something.

One year I was told I owed them £950. I said cannot be, as I am on PAYE, and all is declared. Their response was basically "we are right, you are wrong". The above mentioned mate of mine looked at my tax over a period of years, and determined that IT owed me £1250!!! They agreed, and paid me. I questioned why they were wrong to the tune of £2200, and never got a response. IR are totally unaccountable as far as I can see.

Just to annoy me, they then put me on self assessment, which is a waste of time if you are PAYE!!!! Grrrrr.

The issue is, if they see someone regularly selling on here, or any other site, they could quite easliy tott up your sales, and issue a claim. Its then your tedious responsibility to prove a balance with purchases.

 

[NAILTRAIL96]

In pure monetary terms thats probably true but think of the thousands of trades, car washers, window cleaners, taxi drivers, hairdressers, waiting staff, cleaners etc etc who deal in small cash transactions daily.

Some will be honest but most probably keep some back and it's these people who the treasury are trying to scare into paying up.
Last year it was an amnesty for trades now they've moved online.

There will be people and corporations who aren't paying millions, possibly billions but what kind of resources are required to chase them and sift through paper work and money trails.

 

[Magsy]

As a guy who always says 'How much for cash ' I do wonder if everything, inc high volume Internet traders and your window cleaner paid what they owe, would that have an effect on the rest of us who pay up? Less tax, better service(s)?