Thousands turn to ebay to daily make extra cash, sell unwanted gifts, sell other items and services or even grab a few bargains. Many know that if they're short of cash they can turn to eBay and easily convert an item their selling into cash.
However, if your using eBay like this on a regular basis you may be qualified as a trader. Recently the Inland Revenue have issued a statement to find out if you are qualify as a trader.
If you are deliberately buying a product to sell on at profit it makes you a trader and liable to declare it. It's that simple.
Selling your own good and items, does not make you a trader - unless you've purchased them purely to resell. It's the same with friends, if you are reselling them on behalf of a friend or colleague you are not a trader UNLESS you yourself are making a profit on the items.
It's easy to kid yourself, telling your not a trader because your only making a small profit but the Inland Revenue (in the UK) are known to have their eye on eBay. It wouldn't be hard for them to find out exactly how much you were making. After all ebay and paypal store all your history electronically. None of it gets hidden.
If you do decide to declare any eBay income, eBay will allow you to register as a business and you can also reclaim business expenses. It's not all bad and you may end up saving money in the long term.
The choice is yours to decide whether or not your classed as an eBay trader.
Written by Mark Kenny. Join http://www.AuctionCUT.com - the online auctions and ebay forum. Come and discuss your eBay or online auction goals, with Mark and other members. AuctionCUT offers adrevenue sharing for members and an exclusive dropshipping report. This article contains no legal advice and you should consult an accountant or solicitor for advice before acting. Article Source: http://EzineArticles.com/?expert=Mark_Kenny |  |
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