HMRC tracks the e-traders
HMRC has announced a new campaign to find traders on various websites including eBay, Auto Trader, E-auctions, Amazon, Craigslist and Gumtree. In the latest of a series of campaigns aimed at different areas where the Revenue believe people may be avoiding paying tax, HMRC say that they will be using specialist ‘web robot’ software to search the internet for traders.
HMRC have said that “people who only sell a few items and are not traders are unlikely to be liable to tax and will not be targeted by this campaign”.
A D Holmes & Co advises a number of traders using sites including eBay and Amazon as well as e-book publishers. Our specialist, in depth knowledge allows clients to make the most of their trading allowances and expenses so as to pay the minimum amount of tax.
Speaking about the HMRC’s announcement, A D Holmes & Co’s online tax expert, Adina Holmes said:
“HMRC has been threatening to do something about internet traders for some time but it is difficult to see how they will differentiate between genuine personal sales and traders. It’s inevitable that some innocent people will get caught up in this and they should take professional advice if they get a tap on the shoulder from the Revenue.
“Anybody who trades online does need to consider their tax position and taking advice from an accountant can make sure that your tax bill is limited. I have found, in the past, new clients coming to me who trade online who are failing to set off all their allowable expenses against their profits simply because they did not know what could be claimed. With the right advice, nobody trading online needs to pay more tax than necessary.”