The Wholesale Forums

[Galey]

Hello all,

I have been selling stuff on ebay for a couple of years now. (all my own stuff that i've got bored of e.g. DVDs etc).

I have recently gone self-employed and its very tight at the moment, not drawing much money. I'm looking at wholesale, and figured with my knowledge of ebay, i could pull in some cash just to keep me ticking over, i.e. a couple of hundred a month.

If i started selling on this scale what things would i have to consider? Would i need to record everything for tax purposes when i self-assess myself? Is it legal to buy wholesale goods and sell them as an individual, or would i need to create a trading name/business to act under? (i can get hold of packaging materials, storage space, etc, easy enough).

Any advice would be brilliant!!!

[Davey-D]

Originally Posted by Galey

Hello all,

Hi Galey

Originally Posted by Galey

I have been selling stuff on ebay for a couple of years now. (all my own stuff that i've got bored of e.g. DVDs etc).

I have recently gone self-employed and its very tight at the moment, not drawing much money. I'm looking at wholesale, and figured with my knowledge of ebay, i could pull in some cash just to keep me ticking over, i.e. a couple of hundred a month.

As long as your taking into account the costs on ebay for selling you've nothing to worry about there.

Originally Posted by Galey

If i started selling on this scale what things would i have to consider? Would i need to record everything for tax purposes when i self-assess myself? Is it legal to buy wholesale goods and sell them as an individual, or would i need to create a trading name/business to act under? (i can get hold of packaging materials, storage space, etc, easy enough).

You need to be able to keep and accurate record of what your income is, however, you also need to keep a record of what its costing you to sell, after all, your running as a business so you need to reclaim running costs, this ALSO includes a reasonable amount to cover everyday operations from home, therefore claim for one room in the house, claim for a percentage of electricity and telephone bills.

(I started my business from home and my accountant advised me £25pw was reasonable) I now have a 16,000sq ft warehouse ;-)

It is perfectly legal to buy legal items wholesale and sell them on, but bear in mind, you have a legal responsibility to ensure the goods are not fakes and meet the specifications if required i.e british kite mark etc

If you are challanged by the trading standards because any of your items are illegal i.e toxic paint etc, ensure you have the purchase invoice at hand to show where you purchased the items, providing it was within the UK then the onus is on your supplier, if however, you brought them into the country then you are responsible for ensuring they meet safety standards requirements etc.

Marks & Spencers started off with a Barrow in London, therefore this shows what an individual can attain ;-)

If your turnover goes above £55k per year then you need to register for Vat, it's not as bad as it sounds as you reclaim tax on purchases and charge Vat on your sales deducting the tax you paid from the tax you have to pay and only pay the difference.

Ltd Companies are only there to givea limited Liability, however, the banks now ask for a personal guarantee for any loans etc, so if the company does fail, they dont lose out anymore as they can chase the guarantors for the loan etc