Selling through a website

172-125 · 20-09-2012, 10:56

If I sell products through a website I set up is it classed as a business?
Do I have to pay fees, tax etc

jm79 · 20-09-2012, 11:18

Yes, any source of personal income is subject to tax. You may be best contacting HMRC for more specific advice. You may also have to register as self employed if it is your own 'business' as well. Im sure other people will chip in with some more detailed advice...

indizine · 20-09-2012, 11:44

Yes of course you do. Any income you get should be declared to the tax man to pay any due income tax and if running a business, you need to declare yourself as such to HMRC.

SarahCC · 21-09-2012, 14:46

Yes, any source of income that is separate from your current employment has to be declared. You have to complete a tax return, highlighting all income, saving interest etc

nexusdee · 21-09-2012, 14:54

Quote:

Originally Posted by jm79

Yes, any source of personal income is subject to tax. You may be best contacting HMRC for more specific advice. You may also have to register as self employed if it is your own 'business' as well. Im sure other people will chip in with some more detailed advice...

Isn't selling items you have bought for personal use but no longer want exception to that rule?

indizine · 21-09-2012, 19:55

This is the business forum so we have to assume the OP is referring to an income selling commercially. And selling items through a website is a business. Breeding and selling dogs, renting out your caravan, is all a type of income that should be declared. It's when it becomes repeat that the tax man is interested. What the OP wants to do is a business and that income has to be declared and tax paid, where due.

nexusdee · 21-09-2012, 20:29

You have an exact statement declaring any personal income is taxable, which is incorrect, all personal income is not taxable. Not all selling of items through a website is a business either. The OP could simply be selling their unwanted possessions through a website - & some kind soul has told them because they are selling through a website it must be commercial therefore needs to be declared. & may have thought the best way to find out would be to ask on a business forum forgetting that people would assume that since they were on a business forum they were discussing commercial selling.

Sorry I know this sounds more critical then it means but because you are knowledgeable of something it's far too easy to make assumptions that other people have the same knowledge as you do & could possible unknowingly give out incorrect advise rather then asking for more information

172-125 · 21-09-2012, 21:04

Thankyou for your replies I am wanting to sell brand new knitted items and knitting patterns I do myself, I currently sell them through ebay but was thinking about setting my own website up

Love2print · 22-09-2012, 06:28

You will need to declare your income, which you should also do if you carry on selling on eBay but decide not to get a website. Either way you are selling items regularly to make a profit so the income needs to be declared.

You might find this link useful: http://www.hmrc.gov.uk/businesses/index.shtml

indizine · 22-09-2012, 07:25

You should already be declaring your ebay income to the taxman, you are running a business regardless of where you sell your items, whether its ebay, website, carboot, a shop, etc. It's all earned and therefore taxable.

Just to add, its irrelevant if you make a profit or not. The income you receive from customers - and the fact you are running a business - should be declared to HMRC full stop.

HMRC have given ebayers a deadline in which to calculate and declare their past earnings not already declared, and pay the due tax, or otherwise face a large financial penalty if and when they catch up with you. They have been tracking and tracing ebayers for a while now. Can't recall the deadline but look it up.

ayca · 23-09-2012, 18:02

yes sure you do.You have to register with hmrc dependingon your earnings.

indizine · 23-09-2012, 18:25

Quote:

Originally Posted by ayca

yes sure you do.You have to register with hmrc dependingon your earnings.

That's incorrect. As a business you have to register with HMRC REGARDLESS of your earnings.

172-125 · 24-09-2012, 17:02

I have been in touch with HMRC & I don't need to declare my income, because it is seem as a hobby & not a business, I don't sell regularly & don't keep a large quantity of what I sell, I also use my own cash to purchase supplies. I am not going to sell through a website because I don't have constant items to purchase.
Thankyou to everyone for your replies I now have my answer