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
To download the guide go to:
Committee expresses concern about costs to businesses and April 2018 implementation date
Drastically fewer offices for HMRC in the hope to reduce their running costs
An 80% increase in additional revenue for HMRC coincides with a crackdown on income tax avoidance
Laurence Field, the head of tax at national audit, tax and advisory firm Crowe Clark Whitehill outlines the 6 'unexpected items' regarding HMRC's Making Tax Digital plans