Tax Man Excited over E-trading February 13
Around 68,000 people in the UK currently earn all or most of their living by selling products on eBay it has been estimated, highlighting the growing popularity of e-trading.
“E-traders” are defined as those who either make products specifically to sell online at a profit, buy goods in order to sell them on online, or sell products online for a commission or a flat fee.
eBay, the online auction website, was founded in San Jose, California, in 1995 by computer programmer Pierre Omidyar.
Omidyar was astonished that he was able to sell a broken laser pointer on his website for $14.83 and so resolved to commercialise the platform.
However, HM Revenue and Customs (HMRC) has moved to warn full-time e-traders that they may be required to register themselves as self-employed - which could mean paying income tax, national insurance and VAT - although ordinary traders should continue as normal.
“The overwhelming majority (of online sellers) are selling off unwanted goods. We are concerned with the minority conducting a business,” a spokesman for HMRC told the BBC.
eBay confirmed that all customers had signed a user agreement which outlined the necessity of paying the requisite taxes in their country of origin.
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