If you’re a regular eBay seller, you might want to start thinking about whether your trading will start to attract the attentions of the tax man.
According to an article on the FT, the Revenue & Customs office is planning to look more closely at this type of trading, as the volumes of trades increase and the value of sales goes through the roof (a staggering £2billion in 2004!). It’s unclear at the moment quite what action they are likely to take, but eBayers should take into account are whether their trades make them liable to Capital Gains Tax (annual gains on sold items greater than the annual capital gains tax threshold – currently £8,500 – will have to pay C.G.T.). Also, if you sell goods worth more than £60,000 per year, you will need to be registered for V.A.T..
The tax man is worried that he’s missing out on millions of pounds worth of revenue from the growth of online auctions, so you know that at some point he’ll probably start catching up with the big traders.
More coverage about this story can also be found on The Scotsman.