The Taxman and digital sales

[Chalky]

The taxman is coming after your digital sales and purchases. 
 

https://www.gov.uk/government/publications/reporting-rules-for-digital-platforms/reporting-rules-for-digital-platforms?fbclid=IwAR2XolJM3A42s6-5irtRmrR7ApyHmz-njfs6vZJ5MYsiX2g6G8nSa1_EqW4_aem_Ac7IBP7CAQE3_mFZwK6z48jFW17JbSovW0WweSaMwFyjF0qqXKyNIprctyDHkp9mPk4

[Guest]

Been expecting this.

[Solidsoul]

We might have to go back to mailing paper lists

 

[Mal C]

Having just created a Discogs sales account, I was aksed what kind of seller I am. Not sayig the tax office wont go after sellers like that, but at least Discogs makes the distinction.

here is the blurb that Discogs gives.

----

Discogs sellers are required to identify as Business or Hobby sellers*.

Hobby

You are considered a Hobbyist if you:

Are not affiliated with any business entity AND

Selling is not your primary business; you only list items occasionally

Business

Typical indications that you are a Business Seller include:

Have a physical store where you sell items or otherwise sell through a business entity

Regularly sell many items on Discogs

Example: you have 200 or more discrete sales or transactions resulting in the accumulation of $5,000+ Gross revenue within any continuous 12-month period during the previous 24 months.

Buy items specifically to re-sell them here

*Knowingly misrepresenting your type of business may lead to suspension from the Discogs Marketplace. For those selling to the EU, there may be additional fines and/or legal action taken against you for misrepresenting your trade, business, craft, profession, or falsely representing yourself as a hobbyist or as a consumer. You should check local laws to see if you are considered a Business seller and your obligations.

Who does this affect?

Current sellers will be asked for additional information to verify their accounts. First, we simply want you to tell us what kind of seller you are. In your Seller Settings, you will make a selection to self-identify as a business or hobby seller. Some sellers will be notified if they need to provide further details based on their location and business size.

New sellers on Discogs will undergo an introductory waiting period. If you recently created an account, any inventory you add will be placed in a “Pending” status, which means it will not be available for sale in the Marketplace. Once the waiting period is over, Discogs will ask new users to continue the seller identification process. Since this is a new step, we currently cannot provide an estimate on when this waiting period will be complete.

[Chalky]

2 minutes ago, Mal C said:

Having just created a Discogs sales account, I was aksed what kind of seller I am. Not sayig the tax office wont go after sellers like that, but at least Discogs makes the distinction.

here is the blurb that Discogs gives.

----

Discogs sellers are required to identify as Business or Hobby sellers*.

Hobby

You are considered a Hobbyist if you:

Are not affiliated with any business entity AND

Selling is not your primary business; you only list items occasionally

Business

Typical indications that you are a Business Seller include:

Have a physical store where you sell items or otherwise sell through a business entity

Regularly sell many items on Discogs

Example: you have 200 or more discrete sales or transactions resulting in the accumulation of $5,000+ Gross revenue within any continuous 12-month period during the previous 24 months.

Buy items specifically to re-sell them here

*Knowingly misrepresenting your type of business may lead to suspension from the Discogs Marketplace. For those selling to the EU, there may be additional fines and/or legal action taken against you for misrepresenting your trade, business, craft, profession, or falsely representing yourself as a hobbyist or as a consumer. You should check local laws to see if you are considered a Business seller and your obligations.

Who does this affect?

Current sellers will be asked for additional information to verify their accounts. First, we simply want you to tell us what kind of seller you are. In your Seller Settings, you will make a selection to self-identify as a business or hobby seller. Some sellers will be notified if they need to provide further details based on their location and business size.

New sellers on Discogs will undergo an introductory waiting period. If you recently created an account, any inventory you add will be placed in a “Pending” status, which means it will not be available for sale in the Marketplace. Once the waiting period is over, Discogs will ask new users to continue the seller identification process. Since this is a new step, we currently cannot provide an estimate on when this waiting period will be complete.

Whilst all that is true, many hobbyists are actively trying to avoid import duties and VAT although VAT is added at source now.  But on records that are not cheap a lot of import duty is avoided and that is what they will come after.  They will have a list of everything sold, supplied but the platforms to the HMRC to a department at the HMRC that will deal with this.

[Baz Atkinson]

Might be a minefield to implement I have used PayPal Business since 2017 and it’s a great streamlined service imho just incase any sellers are thinking of going legit . 

I say this with a touch of cynicism as most hobbyists have made a killing for years . 

I decided against Discogs as I feel the bubble is well gone on that train .

Perhaps this is the first steps towards a clamp down on all platforms but on all honestly who will implement this when it’s pretty hard to get any level of service with any HM Revenue Dept ? 

[Chalky]

19 minutes ago, Baz Atkinson said:

Might be a minefield to implement I have used PayPal Business since 2017 and it’s a great streamlined service imho just incase any sellers are thinking of going legit . 

I say this with a touch of cynicism as most hobbyists have made a killing for years . 

I decided against Discogs as I feel the bubble is well gone on that train .

Perhaps this is the first steps towards a clamp down on all platforms but on all honestly who will implement this when it’s pretty hard to get any level of service with any HM Revenue Dept ? 

Read the link mate, it is going to effect all digital platforms, eBay etc

[Billy Jo Jim Bob]

1 hour ago, Chalky said:

Read the link mate, it is going to effect all digital platforms, eBay etc

I had a moan to my MP about the import duty and tax changes on EBay, Discogs etc about two years ago. He works in the BEIS dept of the gov and he explained that the crackdown on all platforms, not just music, is because businesses have been selling on these and not paying taxes due. Unfortunately it also captures the hobbyist as it’s too difficult to separate and would still leave the platforms open to abuse. 

[Mithras]

it's probably worse than you imagine had a bank account closed for selling records , ebay  now marks payment to bank as ebay ,only certain banks meet the criteria for ebay sales ,you are allowed £1000 a year before tax, now  at nearly 70 how you going to sell records obtained through hard work over 50 years of effort, pay pal is only option its not a regulated bank or postal orders or cash.....also some banks now ask for your national insurance number...

[Solidsoul]

1 hour ago, Mithras said:

it's probably worse than you imagine had a bank account closed for selling records , ebay  now marks payment to bank as ebay ,only certain banks meet the criteria for ebay sales ,you are allowed £1000 a year before tax, now  at nearly 70 how you going to sell records obtained through hard work over 50 years of effort, pay pal is only option its not a regulated bank or postal orders or cash.....also some banks now ask for your national insurance number...

Wait until it's a totally cashless society!

The banking system/gov will know where all your money came from, exactly how much money you should only have in your possession, and where you spend it.

Edited October 23, 2023 by Solidsoul

[Mick Boyle]

16 minutes ago, Solidsoul said:

Wait until it's a totally cashless society!

The banking system/gov will know where all your money came from, exactly how much you should only have, and where you spend it.

Full agree, this was on the counter at a local chip shop. 

[Chalky]

14 hours ago, Mick Boyle said:

Full agree, this was on the counter at a local chip shop. 

Our local chippie won't take card, they probably don't declare the takings??? But many establishments want cashless and many bars and hotels take card only.

[Billy Jo Jim Bob]

I ordered a digital download today from Bandcamp and it asked for my location. I selected UK and it added 20% to the price.

[Johnny Northern]

Same with cash. They want rid of it as they can control digital finance. Turn back the clock, record fairs & soul night's.