Internet trading and UK tax

Some people seem to think that just because they're conducting their business over the internet as opposed to via a more traditional 'bricks and mortar' set up, they're not subject to UK taxes. Whilst if you're a non resident, trading over the internet certainly creates problems in terms of identifying the 'taxing jurisdiction' - but if you're a UK resident buying and selling over the internet this will rarely apply. The Revenue have been looking at the tax position of internet trading for some time. It was well reported last year that they were looking at 'ebayers' in particular as it's a difficult area to regulate. In the past they have put a new banner on their website as a general reminder that along with landlords, internet traders may still have a liability to UK tax. If you do sell items over the internet it's well worth taking advice to find out if you register with the Revenue. It's not straightforward as there a number of different classifications for your activities (ranging from a simple hobby to capital disposals to trading). We've looked at the position in our article: When you'll be taxed on ebay and internet profits. As always its free to members.