Legalities of selling

[APNEAJOE]

Hi all,
Have recently made a nice profit selling a few items on that i purchased at an auction. My question is when does selling things like that on become a business.. and what has to be done on the legal and tax side of things to stop me having any unexpected calls from the tax man etc?
Basically i'm hoping to do the same again (buying some ex/bankrupt stock and selling on for profit) It is at present at least a sideline (i work a fabulous 54 hours a week) just wondering what i can and cant do, and say i set up an internet shop or had a market stall where do i stand in reguards to the law? All advice appreciated, thanks Joe

[trainershack]

hi

if you are buying and selling for profit then this becomes a business and you would need to register as self employed etc.

with regards to a market stall/website, you are governed by many legalities regarding the way you sell, use people's information etc. you would also need to obtain a trader's licence from your local council to trade from a stall or other venue such as a hotel.

i would be happy to help you further if you decide to start up such a business, you can contact me through www.hollexretail.co.uk.

[BizLogic]

If you do it as a one off I wouldnt bother however if you are doing this on occassion you have three months before you must register yourself.

Depending on what amount of stock you buy/how much you make/loan, etc etc would determine whats best to register.

UK Google search for advantages of LTDs and Sole Traders. Get familiar with accounts if you set up, even if you make no money you still have to file a self assesment tax return yearly.

[timd1230]

If you do it as a one off you should declare it as other income on your tax return, If you are going to continue you will need to register as self employed (Apply for exemption from class 4 national insurance contributions if you think earnings will be under 15k(i Think) limit)

But take some advice first - you can take pre trading exspenses into your startup and offset any loss against other income - For this type of business you should consider the costs that can be legitimately be incurred - e.g storage - transportation - Packaging etc.

You may find you have a legitimate claim for a tax return at the end of your first year