HM Revenue cracking down on eBay traders

HM Revenue cracking down on eBay traders

Buyers and sellers not the only people visiting auction sites - taxman prowling as well

HM Revenue and Customs is monitoring
internet auction sites, most notably eBay, as part a crackdown on tax evasion.

Traders that buy and sell goods online must register their activities within
three months of starting to trade, or face a £100 penalty and interest charges
on unpaid tax.

Online sellers, like any sole trader must pay income tax,
National Insurance and, depending on
their earnings, VAT.

People making the odd trade online are not considered traders, but anyone who
is specifically buying goods to sell for a profit online, and receiving payment
in cash or in kind is trading, HMRC has explained in a new tax guide for online
trading.

To download the guide go to:
www.hmrc.gov.uk/findout

Further reading:

US tackles eBay taxpayers

eBay traders warned to register with taxman

Ebay traders targeted by Revenue

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