Regularly sell goods online? Be warned, you may owe tax to the HMRC!
If you have been running an e-commerce business or regularly trading online through e-commerce sites, then you should be aware that the HMRC has launched an e-marketplaces campaign. Under the campaign you are liable to pay taxes, if you are trading goods on a regular basis with an aim of making profit.
So, how does the e-marketplaces campaign work and what exactly does it involve? According to the HMRC, you could owe taxes if you are regularly purchasing and selling products online. The FAQ section by the HMRC can help ascertain whether you would be classed as an online trader or not. If so, you will have to start working out the taxes that you owe to the HMRC and this could stretch up to the past 6 years or so.
If you are an online trader, be sure to notify the HMRC by 14 June 2012, this can be done by phone, online or by post. This then allows you to pay for a maximum of six tax years, tell the HMRC how much penalty you should pay and that you can pay in instalments. Please note that once you make the disclosure, you must pay what you owe to the HMRC by 14th September 2012.
The information provided by the HMRC on their website seem sufficient and so it is essential that you get up to speed and be fully aware of what you may or may not owe. Our suggestion is that you get professional help. If need be, you can also ask us. We would be happy to help!
Mia Moore lives in Huddersfield, UK. She likes to take spontaneous adventures and learn about wildlife. She currently works as a writer and covers topics like Part time bookkeeper Huddersfield, Financial management support and advice Huddersfield, The Online Local Bookkeeping in Huddersfield.