Paypal and Tax

Paypal give you a hard time about having a real identity if you receive large quantities of money.

Not heard of any link up with the Revenue yet, but apparently a few investigations on eBay...

It's coming though, as you say...

I've often wondered how people who make a living (or at least a substantial bit of money on the side) through eBay sales go about paying taxes. I guess up to now they haven't bothered, it makes sense that IR would want to get on top of it.

How is this likely to affect people selling second hand records, clothes etc? Surely if the goods have been purchased at full retail in the first place then the government have received their cut and it's up to you what you do with your property, no?

The rule is, if you bought something and decide to sell it on and go on holiday/to Gourmet Burger Company with the profits, HMRC isn't interested. But if you use the profits to reinvest in money making, you owe tax.

Amicose said:

The rule is, if you bought something and decide to sell it on and go on holiday/to Gourmet Burger Company with the profits, HMRC isn't interested. But if you use the profits to reinvest in money making, you owe tax.

Click to expand...

i remember years ago people saying there was a limit of about £8k* before you had to involve Her Majesty's Beancounters. Think it's come down since, though since I only make about £1-2k tops I'm no longer paying attention.

*assuming you weren't making this money as part of your regular job, eg selling promo music received in your line as a music journo/DJ. In which case you're probably liable for every penny