This topic is for users to discuss eBay, not for advertising eBay items. If you are a small business you can advertise here
Becoming a Business Seller - Some advice please(3 Posts)
After losing my job, my confidence and about three stone last summer, I started selling my old clothes on ebay, and buying new ones for my svelte self.
Fast forward a few months, and apart from the pounds creeping back, it's become more than a hobby...an obsession I suppose. I'm buying to sell, and over the past couple of months have sold £2.5k worth of stuff - and probably half of that is profit.
I know that I have to change my ebay account to a business one, and I realise I need to register as a business or as a sole trader. I just have a couple of questions I was hoping someone might be able to answer.
1) I was planning on registering as a sole trader. I understand that this makes for very simple accounting. Sales less expenses equals profit. And I can keep all the profit so long as I stay under the tax threshold which I believe is £11,500 - therefore not a problem.
If I've understood it right, all I need to do is keep my receipts and a record of costs, and when I need to fill in a self assessment (not going to be until January 2019 now) I can download a sales report from ebay (taking fees and paypal fees off). Is that right?
So far, so easy.
2) I already have my own limited company which I use to do consulting work. That sounds very grand, but it has yet to cover its startup expenses (which included a training course costing £2k), and so it certainly isn't going to make a penny profit any time soon. So long as I don't pay myself any dividend or salary, am I right in thinking that I'm ok to receive expenses from my limited company (mileage primarily - but also heat and light and mobile phone etc.) without it counting towards my £11,500 tax limit?
3) My last question is about timing. Do I need to register as a sole trader from last April? I don't have receipts or suchlike going back that far, as I never thought it would become so serious.
If I register effective today, what do I do about stock that I already have (I've got about 350 items upstairs so lets assume they are worth £2k). Can I effectively 'sell' them to my newly registered sole trader self, so that it's a clean line - everything I own or sell from today forwards becomes a business item?
I know I probably need an accountant - but right now there is no way I can afford one, so if anyone can advise on these few points I'd be really grateful.
TBH I think you really need to speak to an accountant in regards to your limited company and a new business venture...... or maybe even a forum that’s more focused on this kind of stuff than here. Good luck!
Join the discussion
Registering is free, easy, and means you can join in the discussion, watch threads, get discounts, win prizes and lots more.Register now »
Already registered? Log in with:
Please login first.