Selling online? at what point would you need to register as a sole trader? uk law?

[arber47]

and how would you go about this .
Like I have just started selling on amazon but at the moment I am only selling my old stuff ie my old books etc but if this goes well I am looking into becoming a sole trader but I'm only 20 so I really have very limited knowledge about taxes etc and the HMRC website is rather confusing

[zadok]

Richard is pretty much spot on.

You are a sole trader if you are "trading". Trading generally involves buying and selling with a view to a profit (there are actually 9 tests to consider, but buying and selling for a profit will cover most situations). If you are just disposing of tat from around your house you are not trading, but once you start buying stuff to sell, then you are trading. At that point you need to register with HMRC.

The HMRC website is actually quite good. Try here
http://www.hmrc.gov.uk/businesses/tmastarting-up-in-business.shtml

[iker]

If the tax requirements over there are similar to here, then perhaps I can help.

I assume your "sole trader" is similar to our "sole proprietor" business structure.

If you are selling stuff you already own and have around the house, you are just a "casual seller" and don't need any special business license.

If you are purchasing stuff with the intent to re-sell it at a profit, then you are now officially a business, albeit an informal one. In this case, then if may behoove (one of my favorite words!) you to get your tax and business ID.

Hope this helps.

[rushford79]

they state as soon as you are making a regular profit from it