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-   -   HMRC targets Etsy, eBay and Gumtree sellers (https://www.cableforum.uk/board/showthread.php?t=33700875)

Jimmy-J 31-05-2015 14:44

HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Such websites are being forced to hand over customer account details, including their selling activity, as part of the Revenue’s legal powers that were extended last year.

This type of information gathering has enabled the taxman to target 14,000 individuals it suspects of failing to declare profits on their self-assessment tax returns, the Revenue confirmed.

Using extensive new powers introduced last year, HMRC can download people’s account information and even force sellers to pay tax that is disputed or subject to an inquiry.
http://www.telegraph.co.uk/finance/p...y-taxable.html

martyh 31-05-2015 17:38

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Good ,Ebay,Gumtree etc where originally intended for people selling items they no longer needed, not for people to set up online companies making large tax free profits

v0id 31-05-2015 17:48

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
About time

Gary L 31-05-2015 20:20

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
i think the government should have all our Ebay, Gumtree and Bargain Pages account details.
just incase we unknowingly have too much money. and it'll be handy for them to be monitoring us so we don't have to worry about anything.

we should also tax the air.

Sirius 31-05-2015 20:24

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by Gary L (Post 35780788)
i think the government should have all our Ebay, Gumtree and Bargain Pages account details.
just incase we unknowingly have too much money. and it'll be handy for them to be monitoring us so we don't have to worry about anything.

we should also tax the air.

They already do its called the TV tax :D

mrmistoffelees 31-05-2015 20:32

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Conservatism 2.0, picking on the little guy

We're still all in this together ? Right?

Osem 31-05-2015 20:47

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by mrmistoffelees (Post 35780790)
Conservatism 2.0, picking on the little guy

We're still all in this together ? Right?

You have no idea how 'little' these people are. Those who evade their tax certainly aren't in this together.

nomadking 31-05-2015 21:06

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Little guy?
Quote:

John Woolfenden failed to pay almost £300,000 in tax on his DVD and games business, in a high-profile case designed to put off would-be evaders.

Hugh 31-05-2015 21:12

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Also from the article
Quote:

People who register their account as a “business seller” on websites such as eBay or Amazon are among the likely targets.
Another article in the Telegraph with a more in-depth explanation (9 point test).

http://www.telegraph.co.uk/finance/p...t-pay-tax.html

Maggy 31-05-2015 21:27

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
I suppose this means everything will become more expensive on these sites..

Gary L 31-05-2015 22:06

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
It means that there will be less people bothering. and Ebay will put the prices up to make up the profit losses.

---------- Post added at 23:06 ---------- Previous post was at 23:03 ----------

Quote:

Originally Posted by Sirius (Post 35780789)
They already do its called the TV tax :D

Eveyone's stopping paying that now :D

Now's a good time to bring out the pavement tax.

papa smurf 01-06-2015 06:11

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by Gary L (Post 35780810)
It means that there will be less people bothering. and Ebay will put the prices up to make up the profit losses.

---------- Post added at 23:06 ---------- Previous post was at 23:03 ----------



Eveyone's stopping paying that now :D

Now's a good time to bring out the pavement tax.

look out for Jumble sale tax

scouts xmas post tax
and church roof fund tax

''''''''''''''''''''''''


The tax man's taken all my dough,
And left me in my stately home,
Lazing on a sunny afternoon.
And I can't sail my yacht,
He's taken everything I've got,
All I've got's this sunny afternoon.

Osem 01-06-2015 07:11

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
The real 'small' guys will have nothing to fear and little (if anything) to pay. Of course if there's a few 'faces' behind numerous small, accounts making lots of money they're not declaring then they might have something to worry about. That's as it should be I'd have thought.

Hugh 01-06-2015 07:23

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Well, considering some of the posts, HMRC could recoup a fortune with a "talking bolleaux" tax*.

HMRC are going after people who run businesses but don't declare this as income, not Joe Public with occasional sales....

(*I would probably be on the Higher Rate....:D)

denphone 01-06-2015 07:35

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
So if l decide to sell some of my prized DVD collection l am fine then Hugh?.

Osem 01-06-2015 07:50

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by denphone (Post 35780832)
So if l decide to sell some of my prized DVD collection l am fine then Hugh?.

Selling your personal goods isn't running a business. Trading buying/selling DVDs would be.

Hugh 01-06-2015 07:59

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by denphone (Post 35780832)
So if l decide to sell some of my prized DVD collection l am fine then Hugh?.

From the link I posted earlier
Quote:

“If you are selling personal items on an ad hoc basis, such as unwanted clothes or your old lawnmower, you wouldn’t usually need to pay income tax,” he said.

“But if you are selling items on a repetitive basis, or buying or modifying items to sell at a profit for example, that could be classed as trading and you would be expected to pay tax.”
So yes, you should be OK.....

denphone 01-06-2015 08:13

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Thanks for that lads as if he do decide to sell 30/40 of my DVD's at least there is nothing to worry about.

Osem 01-06-2015 08:17

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by denphone (Post 35780841)
Thanks for that lads as if he do decide to sell 30/40 of my DVD's at least there is nothing to worry about.

The only thing you'll need to worry about is our 'commission'... :D

Maggy 01-06-2015 08:23

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Wondering how this will apply to all those businesses being run through Ebay out of China..:erm:

arcimedes 01-06-2015 08:31

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by Maggy J (Post 35780843)
Wondering how this will apply to all those businesses being run through Ebay out of China..:erm:

That's going to depend where the business is operating from. China or the UK. If the UK HMRC will be interested. Although you will find that its a bit more complicated than that.:D

Gary L 01-06-2015 08:53

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
How long before the DWP get in on it and class it as income/earnings.

they could deduct say 50p in the pound at the end of every financial year.
but as they'll have access to your accounts you don't need to do any adding up. they'll do it for you.

mrmistoffelees 01-06-2015 09:52

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by Osem (Post 35780793)
You have no idea how 'little' these people are. Those who evade their tax certainly aren't in this together.

I'm a damn site sure than they are not as large as the massive corporations who are avoiding paying their fair share as well as non doms etc.

Shame they don't make as much effort going after them, after all how many successful prosecutions were there in the last parliamentary term ?

The answer by the way, is 1

Osem 01-06-2015 10:19

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by mrmistoffelees (Post 35780855)
I'm a damn site sure than they are not as large as the massive corporations who are avoiding paying their fair share as well as non doms etc.

Shame they don't make as much effort going after them, after all how many successful prosecutions were there in the last parliamentary term ?

The answer by the way, is 1

You're not serious are you? I take it you also believe the police should leave muggers and burglars alone in order to concentrate all their efforts on bigger fish eh...

HMG, HMRC and rafts of lawyers have been working very hard to deal with evasion and aggressive avoidance. That's not to say that more can't/shouldn't/won't be done and indeed HMRC has only just announced they're effectively giving up on fines for late returns etc. to concentrate on more important matters. Odd that, when they're only interested in chasing the little guys according to you.

Many large and aggressive avoidance schemes have been closed down and £billions of tax reclaimed so to claim they're doing very little is nonsense. The truth is, however, that by the nature of these complex schemes and companies which base their affairs offshore, for example, is that the rules are incredibly complex and it's extremely difficult to do anything about them without international agreements.

The problem isn't the will to go after these people/schemes etc. it's the complexity of the rules (both UK and internationally) which allow all sorts of means by which to exploit them.

Only days ago this was announced:

http://www.professionaladviser.com/p...n-hmrcs-sights

and there have been numerous other examples of schemes used by the wealthy to unfairly avoid tax.

http://www.ibtimes.co.uk/hmrc-recove...odgers-1474061

Quote:

HM Revenue & Customs has managed to recover £3.65bn in owed revenue as it clamps down on UK tax evaders.

HMRC's top investigators managed to claw back the extra money thanks to increased scrutiny of tax avoidance schemes, tax evasion and fraud.

Law firm Pinsent Masons found that HMRC's Special Investigations team had the most successful year to date: lost taxes were up by almost a quarter on 2012/13's recovered income of £2.97bn ($4.7bn, €3.8bn).

The takings constitute a tenth of the predicted £34bn tax gap thought to be affecting the UK.

Paul Noble, tax director at Pinsent Masons, said: "These figures should be a massive jolt to anyone with undisclosed or outstanding tax liabilities that have given them significant savings. HMRC has been recruiting and training heavily in order to increase the activity of its specialist investigations team. That new capacity is now clearly on-stream.
Clearly those who've been on the receiving end don't think HMRC is doing nothing:


http://www.ft.com/cms/s/0/80219afa-a...#ixzz3bo0sVi5s

Quote:

Investors in several commercial property ventures deemed to have misused generous tax reliefs now face demands to repay large sums to the government.

In the latest crackdown on tax avoidance, members of at least three partnerships that took advantage of the government-sponsored Business Premises Renovation Allowances (BPRA) scheme have now been issued with accelerated payment demands to repay tax relief claimed on their investments.
http://www.accountancyage.com/aa/new...-gbp24bn-yield

Quote:

AN HM REVENUE & CUSTOMS CRACKDOWN on tax avoidance and evasion has brought in an additional £23.9bn to the public purse.

The haul marks HMRC's highest since records began, which it said is a result of its investigations.

mrmistoffelees 01-06-2015 12:26

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by Osem (Post 35780858)
You're not serious are you? I take it you also believe the police should leave muggers and burglars alone in order to concentrate all their efforts on bigger fish eh...

HMG, HMRC and rafts of lawyers have been working very hard to deal with evasion and aggressive avoidance. That's not to say that more can't/shouldn't/won't be done and indeed HMRC has only just announced they're effectively giving up on fines for late returns etc. to concentrate on more important matters. Odd that, when they're only interested in chasing the little guys according to you.

Many large and aggressive avoidance schemes have been closed down and £billions of tax reclaimed so to claim they're doing very little is nonsense. The truth is, however, that by the nature of these complex schemes and companies which base their affairs offshore, for example, is that the rules are incredibly complex and it's extremely difficult to do anything about them without international agreements.

They made one successful prosecution in the last parliamentary term. If that's not a fairly nailed on description of the term 'very little' then I'm unsure what is.

So the rules are complex and difficult? Well, change them then? The ones that can be changed that is. (I think this is starting to be done now but it shouldn't have taken as long as it has)

So the late tax fines are scrapped, well whoop dee Mod Edit,please don't swear do Basil. I'm sure that will be of significant value to people as they find the wages aren't meeting their ever expanding costs.


And to be honest, if the police said I'm sorry sir we don't have the resources to investigate the fact you were burgled as we're concentrating on a major murder enquiry I'd be cross as hell but it's understandable.

The very simple fact of this whole entire argument is unfortunately that regardless of which bunch of misfits hold power, they will always serve the needs of big business first rather than the people who entrusted them into office.

banjo 01-06-2015 14:08

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by Gary L (Post 35780788)
i think the government should have all our Ebay, Gumtree and Bargain Pages account details.
just incase we unknowingly have too much money. and it'll be handy for them to be monitoring us so we don't have to worry about anything.

we should also tax the air.

They have looked at taxing air by fitting us all with a gas mask type device that taxes the volume of this luxury:shocked: :shocked:

Osem 01-06-2015 15:34

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by mrmistoffelees (Post 35780870)
They made one successful prosecution in the last parliamentary term. If that's not a fairly nailed on description of the term 'very little' then I'm unsure what is.

So the rules are complex and difficult? Well, change them then? The ones that can be changed that is. (I think this is starting to be done now but it shouldn't have taken as long as it has)

So the late tax fines are scrapped, well whoop dee f**ing do Basil. I'm sure that will be of significant value to people as they find the wages aren't meeting their ever expanding costs.


And to be honest, if the police said I'm sorry sir we don't have the resources to investigate the fact you were burgled as we're concentrating on a major murder enquiry I'd be cross as hell but it's understandable.

The very simple fact of this whole entire argument is unfortunately that regardless of which bunch of misfits hold power, they will always serve the needs of big business first rather than the people who entrusted them into office.

Nobody's saying enough's been done or that still more couldn't be done. What I'm taking issue with is your original we're all in this together' assertion which was that they always go 'after' the little guys and if only they spent as much time going after big business etc. which doesn't hold water. I didn't claim abolishing the fines was a major thing or on the same scale - just pointed out that it contradicted your claim they always go for the small guys.

HMRC and the govt. don't determine prosecutions or interpret laws, courts do and often in ways which Govts. don't appreciate and cause them plenty of embarrassment. I dare say HMRC would welcome simpler national/international tax rules and stricter laws with harsher penalties but 'changing' them isn't as simple as you seem to think. The fact remains that they're expending a good deal of effort chasing the big fish and to claim otherwise is nonsense.

martyh 01-06-2015 16:48

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by mrmistoffelees (Post 35780870)
They made one successful prosecution in the last parliamentary term. If that's not a fairly nailed on description of the term 'very little' then I'm unsure what is.

.

I think you need to re check your facts

Quote:

The number of criminal prosecutions for tax evasion more than doubled in the UK during the last tax year, amid claims that the exchequer has increased its hit-rate by targeting "small time" offenders suspected of defrauding the taxpayer.
HM Revenue & Customs successfully prosecuted 617 people for tax evasion during 2012/13, up from 302 in 2011/12, according to figures obtained by the law firm Pinsent Masons. The figures were well in excess of HMRC's target of 565 prosecutions for the year, but come after missing what critics said was an artificially low target of 365 in 2011/12.

http://www.theguardian.com/business/...-increase-hmrc


In 1 year alone there where considerably more successful prosecutions than 1 :rolleyes:

mrmistoffelees 01-06-2015 17:34

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by martyh (Post 35780925)
I think you need to re check your facts



http://www.theguardian.com/business/...-increase-hmrc


In 1 year alone there where considerably more successful prosecutions than 1 :rolleyes:

I was referring (obviously I thought but hey ho) to large corporate scale tax avoidance that article appears to imply it's targeted small scale / time avoiders I've only quickly scanned the article however so happy to be corrected

Osem 01-06-2015 17:38

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
So far as avoidance goes, I'd have thought prosecutions are always going to be more problematic than just securing the repayment of tax owed because the boundaries between what's acceptable avoidance and what isn't (i.e. what's legal and not) have to be tested before any scheme can be declared illegal. To be successfully prosecuted, I think there'd need to be proof that those involved in schemes which have been judged to be illegal after the event were fully aware of the illegality beforehand.

martyh 01-06-2015 17:45

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by mrmistoffelees (Post 35780932)
I was referring (obviously I thought but hey ho) to large corporate scale tax avoidance that article appears to imply it's targeted small scale / time avoiders I've only quickly scanned the article however so happy to be corrected

It is impossible to prosecute anyone (including large corporations) for tax avoidance, large scale or otherwise.Once prosecutions become possible then we are talking about evasion and the figures I gave show that HMRC have prosecuted record numbers of people during the last parliament

TheDaddy 02-06-2015 05:39

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by Hugh (Post 35780830)
Well, considering some of the posts, HMRC could recoup a fortune with a "talking bolleaux" tax*.

HMRC are going after people who run businesses but don't declare this as income, not Joe Public with occasional sales....

(*I would probably be on the Higher Rate....:D)

Probably :shocked: :D

---------- Post added at 06:34 ---------- Previous post was at 06:32 ----------

Quote:

Originally Posted by denphone (Post 35780832)
So if l decide to sell some of my prized DVD collection l am fine then Hugh?.

Not that prized then... :monkey:

---------- Post added at 06:36 ---------- Previous post was at 06:34 ----------

Quote:

Originally Posted by mrmistoffelees (Post 35780855)
I'm a damn site sure than they are not as large as the massive corporations who are avoiding paying their fair share as well as non doms etc.

Shame they don't make as much effort going after them, after all how many successful prosecutions were there in the last parliamentary term ?

The answer by the way, is 1

Why can't we go after both? Is targeting one group going to be at the expense of another.

---------- Post added at 06:39 ---------- Previous post was at 06:36 ----------

Quote:

Originally Posted by martyh (Post 35780942)
It is impossible to prosecute anyone (including large corporations) for tax avoidance, large scale or otherwise.Once prosecutions become possible then we are talking about evasion and the figures I gave show that HMRC have prosecuted record numbers of people during the last parliament

How about we stop giving corporations these cushy little deals that mean they actually pay less than they should've if they'd paid the taxes due, hit them hard imo if they're found to be trying it on aggressively

mrmistoffelees 02-06-2015 09:03

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by TheDaddy (Post 35780985)
Probably :shocked: :D

---------- Post added at 06:34 ---------- Previous post was at 06:32 ----------



Not that prized then... :monkey:

---------- Post added at 06:36 ---------- Previous post was at 06:34 ----------



Why can't we go after both? Is targeting one group going to be at the expense of another.

---------- Post added at 06:39 ---------- Previous post was at 06:36 ----------



How about we stop giving corporations these cushy little deals that mean they actually pay less than they should've if they'd paid the taxes due, hit them hard imo if they're found to be trying it on aggressively

If there are the resources to go after both sets then yes I agree completely but if there was a choice to be made I would rather see the large corporations chased first

tweetiepooh 02-06-2015 11:45

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
I guess you also need to take into the account of "prosecution" compared to the amount recovered.

But our laws, by the nature of our legal system, will always be complex. It would be nice to simply say you pay n% of earnings and that's it but there are exceptions with exceptions and folk will always try to pay less by using loop holes and exceptions so these have to be defined very precisely.

Chris 02-06-2015 12:02

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Well, governments will insist on using tax as a means of incentivising or disincentivising certain behaviours. If they would simply collect a proportion of wealth generated in order to fund essential state services, life would be much easier. But they don't, and a lot of HMRC's time is spent deliberating whether someone is behaving as the system encourages them to, or if they are hiding their tax liability and should therefore be pursued.

As usual where the Internets are concerned, a lot of people seem to think they are entitled to something for nothing, whereas money earned by an online business is just as taxable as money earned by a high street shop.

martyh 02-06-2015 18:00

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by TheDaddy (Post 35780985)

How about we stop giving corporations these cushy little deals that mean they actually pay less than they should've if they'd paid the taxes due, hit them hard imo if they're found to be trying it on aggressively

I am a big fan of a single rate of tax for everyone ,including corporations .It would be easier to manage and grey areas would be wiped out at a stroke ,but as Chris says below ,governments tend to use tax rates for a variety of reasons.

TheDaddy 02-06-2015 19:11

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by martyh (Post 35781126)
I am a big fan of a single rate of tax for everyone ,including corporations .It would be easier to manage and grey areas would be wiped out at a stroke ,but as Chris says below ,governments tend to use tax rates for a variety of reasons.

There is no grey area, certainly not from where I was typing, from what little I've seen it seems to me that HMRC concludes a company is taking the mick, court cases drag on for years, normally being found in HMRC's favour only to then have the cushy little deals kick in, these companies run rings round us and end up paying less than they would've if they'd been paying what was due in the first place, the bare minimum we should expect is that they pay back everything they owe with interest.

---------- Post added at 20:11 ---------- Previous post was at 20:09 ----------

Quote:

Originally Posted by Chris (Post 35781050)
As usual where the Internets are concerned, a lot of people seem to think they are entitled to something for nothing, whereas money earned by an online business is just as taxable as money earned by a high street shop.

With considerably fewer overheads, they didn't know when they were well of, after decimating the high street they are getting far less than they deserve.

martyh 02-06-2015 19:46

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by TheDaddy (Post 35781135)
There is no grey area, .

Of course there is ,tax law is absolutely awash with grey areas, that's how these tax avoidance schemes come about in the first place,they utilise grey areas to avoid paying tax ,HMRC have to spend an awful lot of time and money trying to decide if a company is taking the mick or acting within the law .Companies have an obligation to minimise there tax liability as long as it's done within the law ,the problem is that sometimes the law is as clear as mud

TheDaddy 03-06-2015 13:42

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Quote:

Originally Posted by martyh (Post 35781138)
Of course there is ,tax law is absolutely awash with grey areas, that's how these tax avoidance schemes come about in the first place,they utilise grey areas to avoid paying tax ,HMRC have to spend an awful lot of time and money trying to decide if a company is taking the mick or acting within the law .Companies have an obligation to minimise there tax liability as long as it's done within the law ,the problem is that sometimes the law is as clear as mud

As stated that's not the issue, the issue is even in the most aggressive cases it's in their interest to try it on because the tax man is so wet he'll do a deal with them after court has found in our favour that equates to the company not even paying back the amount that should have been due in the first place. Let alone without interest being added for the years it dragged on.

Osem 03-06-2015 15:46

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Very true Marty. Exploiting 'grey areas' is a large part of what being a lawyer or an accountant is all about. These rules are not simple or unequivocal so there's always plenty of room for 'interpretation' and only the courts can decide whether something's actually illegal or not. Even when they do rule there are often lengthy appeals and new judgements all of which goes to show just how difficult it is.

RizzyKing 04-06-2015 21:16

Re: HMRC targets Etsy, eBay and Gumtree sellers
 
Can't George Osbourne just take them out for lunch and sort it that way worked so well with big corporation's.


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