HMRC Target Online Businesses

The HMRC’s clamp down on tax dodgers continues with online traders being the latest businesses under the spotlight. However, there can be a grey area in determining whether individuals are deemed to be “trading” if they are selling items online. 

The general principal is as follows: If you are selling personal belongings you no longer want, then this does not constitute trading and you are not liable for tax on the profits. However, if you regularly buy and sell items online then this can be deemed to be trading and you will be taxed accordingly. 

Individuals who are not sure whether their activity constitutes “trading” would be advised to consult their accountant as the HMRC will be levying fines for businesses who do not submit their tax returns on time.