Advice on UK Ebay taxes

Natlac · Dec 13, 2018

I am looking for advice on a particular situation I find myself in

I have been restricted to sell(I can only buy) on my original Ebay account as I basically did not know what I was doing and it seems that Ebay does not give 2nd chances. My partner's account was restricted to sell to 4k a month as they have found out that it was connected in some way to mine, they gave her the option to call and explain herself to them but I was worried that if she would do that and the explanation would not be convincing they would have restricted her selling rights for good so we left it like that.

As I have seen the big potential that the Ebay market is I wanted to sell at a larger scale, I have done this through the account of a good friend of mine, but now the end of the financial year is coming and I do not want my friend to have problems with HMRC because of me.

Can someone please explain to me how can I pay his taxes without him being self employed as he would go over certain limits as he already is employed and earns a monthly salary and the taxes would be way to big.

Please understand that I am not trying to dodge taxes, I am only trying to find out how to pay the taxes of the sales I have made from his account without getting him involved personally with HMRC
Any options would be welcomed as I am quite concerned about this

Please bare in mind that I am a newbie here and can not leave PM at the moment

blogzandstuff · Dec 13, 2018

Natlac said:
I am looking for advice on a particular situation I find myself in

I have been restricted to sell(I can only buy) on my original Ebay account as I basically did not know what I was doing and it seems that Ebay does not give 2nd chances. My partner's account was restricted to sell to 4k a month as they have found out that it was connected in some way to mine, they gave her the option to call and explain herself to them but I was worried that if she would do that and the explanation would not be convincing they would have restricted her selling rights for good so we left it like that.

As I have seen the big potential that the Ebay market is I wanted to sell at a larger scale, I have done this through the account of a good friend of mine, but now the end of the financial year is coming and I do not want my friend to have problems with HMRC because of me.

Can someone please explain to me how can I pay his taxes without him being self employed as he would go over certain limits as he already is employed and earns a monthly salary and the taxes would be way to big.

Please understand that I am not trying to dodge taxes, I am only trying to find out how to pay the taxes of the sales I have made from his account without getting him involved personally with HMRC
Any options would be welcomed as I am quite concerned about this

Please bare in mind that I am a newbie here and can not leave PM at the moment

Talk to an accountant, must be some near you, otherwise you will get unqualified advice, don't mess with the taxman, do it right or you'll end up in big trouble. Get professional advice

Natlac · Dec 13, 2018

blogzandstuff said:
Talk to an accountant, must be some near you, otherwise you will get unqualified advice, don't mess with the taxman, do it right or you'll end up in big trouble. Get professional advice

Thank you for your prompt answer Blogzandstuff

I have already spoken to an accountant but she did not help, on the contrary, I have more questions because of her. I believe that not any accountant has experience with Ebay and such sort of issues as mine.
If you do know accountants that you believe I can get some help from please do recommend them to me.

Bread · Dec 15, 2018

Just because it's his Ebay account doesn't mean he has to pay tax - you're the one making money from selling therefore you keep the profits, therefore it's your tax to pay.

I don't know this as 100% fact so speak to an accountant, but if it's just his account I can't see how that's relevant

Natlac · Dec 16, 2018

Bread said:
Just because it's his Ebay account doesn't mean he has to pay tax - you're the one making money from selling therefore you keep the profits, therefore it's your tax to pay.

I don't know this as 100% fact so speak to an accountant, but if it's just his account I can't see how that's relevant

Yes, but if HMRC would have a look over my friends earnings from the last year they might discover that extra money in his Paypal account, and I believe that would be taxable in his name as the Paypal account is his, wouldn't that be right?

Bread · Dec 16, 2018

Natlac said:
Yes, but if HMRC would have a look over my friends earnings from the last year they might discover that extra money in his Paypal account, and I believe that would be taxable in his name as the Paypal account is his, wouldn't that be right?

As youre using his paypal it does complicate things - unfortunately I don't know enough about this to give you a conclusive answer.

As you're the one who is profiting off of this, I wouldn't have thought it would be an issue - generally HMRC don't look into someones finances for no reason, I've never heard of someone who's PAYE (Employed) being under investigation, however for the cost of an accountant I'd consult actual advice - I'm only guessing.

t2van · Dec 16, 2018

eBay now can and do pass on details to HMRC or will restrict an account if they suspect you of selling as a business, fairly sure there was some press about that a few years ago.

As for your friend. If your friend is acting as self-employed for you and is also earning money you will be bumping him/her into a possible additional tax threshold, because your friend already works and is paying tax any additional income he/she brings in will be taxable!

Either way your digging some MASSIVE hole for you and your friend, my advice speak to an accountant. Stop what your doing and take it above board.

Advice on UK Ebay taxes

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