Webuser Forums: Ebay Help Please

Firstly VAT is not going to be an issue until you are turning over well over £60,000 pa so put that one on the back burner.

For tax purposes you want to keep records (excel is good, but you can use a book) and keep tabs on what you spend and what you sell. Postage, stock, stationary, eBay and PayPal fees etc are all costs, and the sales should be item price and postage.

You can register with the IR on line and declare yourself as self-employed (which does not mean you cannot work as employed but at least you have an avenue to declare earnings). You can pay NI and it works out between £8 and £11 a month.

You can file a Tax Return on paper (they will send you one) or do what I do and do it on line. Ned Flanders style, I am filling in mine just after 6th April (tax years run 6th April to 5th April so the end of this tax year is 5th April 2008). IF you keep good accurate records you will find it a doddle. Don't forget to include some costs for 'use of a room in the house' - can be fifth or sixth or your gas and electric in some cases taken off your profits.

Also if you earn under your tax code there will be nothing to pay, but you must still file a return. The tax side can be easier than you think.

Buying things from wholesalers: When I started out I bought what I was sure would sell and most of it bombed. Solution? Sell it on as wholesale lots to recover the money.

When looking at Wholesale lots use total price (cost + shipping) and work out a single item cost. Example: you buy 1000 items at £500 total. That means each one is 50p each to you. Two questions: How much do you want to make? and How much will them actually sell for?

By 'sell' I do mean REALLY sell. Better to shift the 1000 for £1.50 and treble your money in a few months than sit on them for two years at £3.00. Also check on eBay what they sell for.

Another tip: If you are buying lots off eBay check if anyone sells them in singles. You get some clown sellers flogging, say, 50 Teletubbie Alarm Clocks and then selling them in singles as well! What is the point of buying off someone who can obviously undercut you!

Also think about selling the items in 10s or 100s or even combining them with something else.

Shipping: Buy in a stock of envelopes and boxes to match what you are selling. The best suppliers are actually on eBay strangely enough! Charge for Postage AND Packing and don't forget to add some allowance for handling - basically wrapping the item and getting it to the post office.

Recorded Delivery where poss, but there are some good cheap couriers about too.

Some sites:

http://www.hmrc.gov.uk/startingup/index.htm

http://www.vatark.co.uk/Regnlmts.htm

http://www.tiscali.co.uk/jobs/selfemployment/

http://www.adviceguide.org.uk/index/life...t_checklist.htm

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I loved my grandmother very much.......and she fetched a good price on eBay.

Edited by FilthyRaider (Sun Feb 10 2008 03:38 PM)