Traders who plan to use eBay to sell goods this Christmas have been warned to
register with HM Revenue & Customs before doing so, or face a £100 fine.
Enquiries by UHY Hacker Young to HMRC have confirmed that any income from
trading online, irrespective of the size of the sum, will require a notification
of self-employment, even if the trader falls below the income tax threshold.
HMRC will be able to
issue a £100 fine if
traders fail to register. For individuals who are already
taxpayers, or who generate profits that exceed the personal allowance, then
liability may arise to income tax and national insurance.
‘You are allowed to sell personal possessions online without notifying HMRC,
but if goods are purchased with the intention of selling them at a profit, you
are trading and you must register and possibly file a tax return,’ said
UHY Hacker Young partner