eBay business do i have to be a REAL business?

[Karbea]

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 :)

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.

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

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

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

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

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