The Wholesale Forums

[ham76]

hello people.
ive been buying and selling on ebay for the last 4 months. its been going well so far. am hoping to start up my online shop in a few months time.-but thats another story.

what i really want to know. shd i register as a company for a vat number and all that. coz i buy all my items from the uk and sell them on ebay. ive been doing that privately. i was told by someone that if i had a company vat number i dont need to pay the 17% my suppliers charges.

will it work out cheaper that way or shd i keep going private

[PT]

By law, you need to let HMRC know you are trading, as a business, within three months of starting up. I suggest you do so sharpish, as you mentioned its been four months so far. You can fill out the form online, take a look at the HMRC website.

VAT registration does mean you can claim back VAT, correct. However, you will now need to charge your customers VAT once registered. I personally wouldn't register unless you need to (i.e. if your turnover is over £64,000).

Its best to do things by the book from the start, HMRC don't take kindly to those trading illegitamately. Its better to be safe, than sorry.

[ham76]

i think i'll stick to selling privately then.

[PT]

If your buying anything with the intention of selling it to make a profit, you need to let HMRC to know about this. Believe me, if you don't, you'll regret it.

[FiveStarWholesale]

Originally Posted by ham76

i think i'll stick to selling privately then.

Thank God eBay are bringing in new rules where people who sell to make a profit have to register as a business with eBay and display an address.

It will make life easier for HMRC to catch the tax dodgers who make life harder for honest sellers who pay taxes.