Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

As HM Revenue & Customs continue to crack down on tax avoidance, online traders are to be tracked using web robots. HMRC data indicates that significant numbers of people are receiving income which needs to be declared to the tax man. The campaign for e-marketplace traders will include online traders being tracked by the web robots.

Traders who use sites like AutoTrader, Gumtree and eBay will be targeted by HMRC during efforts to improve tax compliance. However, HMRC are keen to point out that individuals who already submit tax returns and make declarations are not at risk of investigation. The individuals who regularly trade goods online with a high value or make regular sales and haven’t registered with HMRC will face investigation.

According to the tax director at the Institute of Chartered Accountants of Scotland, Derek Allen, information will be mapped out by the web robots that indicate trading online. The areas which are most likely to be targeted are Income Tax, VAT and Capital Gains Tax. He also advises individuals to approach HMRC rather than risk an investigation and penalties which could be up to 100 percent of tax owed.

As online trading sites like eBay have become increasingly popular, the number of online traders has increased. According to eBay, over a million people earn their main income from selling online. Allen added:

“HMRC information suggests there are significant numbers of people who obtain income which needs to be returned. However, there may be expenses and capital allowances which may be set against the income.”

Outsourcing to a low cost accountants will ensure that all applicable reliefs and allowances are claimed, legitimately reducing a tax bill.

 

 

 

About The Author

Kara Copple

An experienced business and finance writer, sometimes moonlighting as a fiction writer and blogger.

More posts by this author
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More

Succession Planning for Business Owners: What Comes Next?

When you own a business, it’s extremely normal to feel like you’re surviving one day to the next – ‘winging it’, as…

Read More

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.