Mumsnet Talk

karbea no you don't pay until over threshold ( which is lower for NI than tax but you must register as self employed within 3 months of start date regardless of how much or little your profits are

Thank you, I doubt I'll make very much.

Surely I won't pay any tax until my profits are over my tax allowance?

you have 3 months from starting a business to register with inland revenue, but you need to keep accounts from day 1 and pay tax from day 1, though tax and extra NI are paid in arrears on 31st jan and 31st of June however you would have to make a lot of money from ebay between now and 5th of april to be liable for tax, ( obviously depends on other income) for 2012-2013

if you do not have a job a an employee you should pay self employed NI contributions they are about £2.50 a week, there is more NI to pay retrospectively when tax is due as a guide it will be approx 25% of any profit so make sure you do not spend it

you will need to register as self employed straight away - same time you register with ebay as a business.

Just read a few other posts and it looks like I do.

For those of you that are, have you told the tax office IR, or waited till you actually made some money?

Thanks.

Hello,

I've just started fiddling with eBay, but I think i'd actually like to continue with it and buy things to sell on it.

I wasn't able to upload an item on Friday as I'd hit my maximum amount of items in 30days, so to try and get over this I bit the bullet and upgraded to a eBay shop. However i've just tried to upload again and get the same message, now telling me to become a business.

I'm obviously not a business (not registered as one)...

I guess my question is, what are the con's of doing this? Does it REALLY matter if i'm an individual or a business?

If it doesn't then I'll go ahead and upgrade to a business and load the item!!

Thank you