Revenue targets eBay earnings
Published March 20th, 2007
Users of internet auction sites such as eBay are being targeted by HM Revenue & Customs in a crackdown on tax evasion.
Traders who are buying and selling goods online but are not declaring the income to the Revenue are being told to register their activities within three months of starting to trade, or face a £100 penalty and interest charges on unpaid tax.
The rules apply to all sole traders, whether they use the internet or not, but with the explosion in popularity of auction sites such as eBay, the Revenue is making a beeline for those trying to hide their trades in the ether.
Traders need to pay income tax, National Insurance and, depending on their earnings, VAT, and it is their responsibility to tell the Revenue.
The Revenue has produced an online guide for those who are not sure whether they should register to pay income tax and National Insurance.
