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HMRC’s tax crackdown on the online sales of goods could have important VAT consequences.
KEY POINTS
- HMRC have launched an initiative to recover more tax from those carrying out online business activities.
- The danger of online trade taking total sales over the VAT registration threshold.
- When do online sales move from a hobby or personal activity to a taxable business?
- The importance of the guidance and business tests in the Lord Fisher case.
- Consider whether the online selling might be carried out by a separate person.
An accountant friend helpfully cut out a news piece from The Independent about HMRC’s latest initiative to collect more tax from traders who sell goods on the internet; users of eBay and other online sales sites are the apparent targets. However I was concerned about his next comment: “I don’t suppose...
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