eBay Stamp Sellers Could Be Targeted by Taxman
My understanding is that the minute you buy items and sell them for profit you should start keeping records and prepare to declare the income earned regardless of whether you are reinvesting in your collection.
Today the BBC reports that sellers using trading websites (e.g. eBay, Amazon Marketplace or eBid) are going to be actively targeted by the Inland Revenue. Many professional stamp dealers who carry the full cost burden of business and pay their taxes on profits will probably welcome this news. Many feel the marketplace is dogged by regular eBay sellers who don't declare their profits and depress stamp prices unfairly. Some even suspect there are black economy eBay sellers who are now so active that they should be VAT registered!
The Inland Revenue's e-marketplaces campaign is specifically aimed at identifying people who trade goods at a profit online but do not pay tax. It's doubtful in my view that they will have the resources to investigate the occasional sellers or very low turnover eBayers but, if you are at all concerned about your potential taxation position, we suggest you seek advice before it's too late. Ignorance will be no excuse if the Taxman calls and eBay will have all the sales figures to show them...
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