@cq_electrical wrote:
Looks like I quit selling at just the right time then, doesn't it? 🙂
Of course, this is the UK we're talking about and things are a bit different here.
Not so different really. My accountant was an ATO investigator prior to setting up his practice and says that as far as the tax department's concerned "if it looks like and acts like a business - it's fair game for an audit and it's up to the trader to prove it's not."
Contrary to popular myth, no minimum trading limits (in dollar terms) apply, and the ATO watch eBay constantly - even to the point of buying items as evidence!
At the very least, it pays to keep good records (even though this could be construed as "acting like a business") because the penalties are often more than double the assessment of avoided tax.
Another thing to consider is the competition - angry competitors who may be legitimate traders will "dob in" fellow eBayers they suspect of flying under the radar, ant the Tax Dept is obliged to follow up on such info......
