Ebay: Business vs. Private Use

[squidgster]

Anyone registered on Ebay is having to confirm by the 30th whether they are a private seller or a business seller. I'm not a member myself, so not sure of all the ins and outs. A neighbour has asked if I can try and find out where she stands.

She sells her own paintings that she has done as a hobby and collected over the past 30 years or so. They're only gathering dust, and she decided she had no real need to keep them, and so is selling off some of her stuff. She sells them as and when she gets round to listing them, and apparently on average receives about �150-�250 a month.

Is she classed as a business seller?

Any advice that I can pass on gratefully received.
Thanks!

[Ethel]

As your neighbour is using eBay already she is in an excellent position to find out for herself.

Tell her to use the community discussion boards on eBay where she will get excellent advice.

http://pages.ebay.co.uk/community/chat/

[squidgster]

Thanks Ethel, will pass that on...she probably doesn't know about the discussion boards.

[Ethel]

It's a difficult one. A person is allowed to sell their unwanted personal belongings without having to declare it to the taxman.

However, getting a regular income from selling her own work is not so straightforward as Joe Bloggs selling the occasional used dvd, book, outgrown pushchair or old settee.

How many paintings does she sell in a month?

[dasherman]

I think the general rule is that if you're buying something with the intention of selling it on,then you are operating a business.

Your neighbour is buying paint,canvas,etc and turning them into a product - a painting! So she should really be paying tax on the profit she makes.

[Man in Black]

Of course she should be registered as a business seller - NO argument.

[RevFunk]

Burger me just register as private who's going to know?

Don't say the taxman because he wont.

[lollyangeley]

she is not a business unless she is trading to make a profit. The tax man will allow a certain amount to be sold without tax implications, once she has gone over that amount she must advise them and then register for self assessment forms...... until then she is a private trade and not a business as she is buying and selling ... hence no 'turnover' at this present time.

If she rings the tax helpline they will advise of the amount and then she can ( if shew wants) not sell any more until the next tax year.

[RevFunk]

I cannot believe some people lol.

Don't register as a business seller, just sell what you want and don't declare it.

The likelihood of been caught by the taxman through your ebay dealings is minute.

Contacting the taxman is like standing naked in the middle of the street shouting looking at me!