Times get tough sometimes, so you root around in the cupboards at home and see what you can sell on to make a little extra cash. Old music, clothes and DVDs may cross your hand, but then you may find something a little rarer like an original games console that is no longer sold on the market. You upload it to eBay and other sales websites in the hope you get a good bite.
Using selling sites like eBay for making money is a go-to for most people in a financial twist. It’s a quick way to pull in some extra money for the weekend and it’s a good way to get rid of unwanted stuff sitting around the house. Win, win – right? Wrong. Most people don’t realise that you need to declare your income to the tax man. Even the things you sell for a small profit – if you profit, you need to let the government know about it.
You can find yourself in hot water if you haven’t declared your eBay income by registering as self-employed. Any time you make things to sell or just sell on things you’ve already purchased, you need to ensure it is above board or it could come back to haunt you later on. You could turn your little eBay hobby into a good, profitable business, but it won’t stay that way if you haven’t covered yourself by registering with the tax people. If it’s an income, it’s subjected to income tax. Keeping accounts and ensuring you do a yearly tax return will save you from hefty fines later on.
eBay has some strict rules for sellers and you need to get some decent advice if you find yourself stung by a buyer. Unfortunately, buyers who claim not to have received items are covered by this guarantee from eBay, and as a seller you can find yourself severely out of pocket. If this happens to you and you also haven’t been declaring your income, you will end up feeling taken advantage of as there’s not only a huge chunk of money missing now, but also you will have fines to contend with. You’re always able to get legal advice, but make sure you speak to a reputable firm who knows what they’re dealing with when it comes to taxes and eBay disputes. If you find that you aren’t getting what you need from your legal advisor, then speaking to someone who specialises in solicitor negligence is the next step. Keeping an eBay business running smoothly is not as easy as you may think; there are a lot of things to remember about being a business owner that ensures taxes are paid and everything is as it should be.
If you do decide to turn your hobby into a money maker, then make sure you have checked all legalities before you start. Get registered as self-employed and even go as far as taking out insurance so you don’t get stung by rogue buyers!::::::::::::: - Chiino I don't do comments around here, so let's keep the conversation going on Twitter. If Twitter's not your thing, give us an email.