Based on my circumstances:
I am currently employed full time.
I don’t own a buisness.
I am not registered as a business.
I am looking to do mainly retail arbitrage.
I’m not registered with HMRC as far as I know I just pay tax on my wage in my current job?
And would just be completing a self assessment at the end of each tax year to pay my taxes.
Would I be correct in thinking I should select sole proprietorship?
Select sole proprietorship and register as self employed with HMRC to get your UTR, you’ll need this for when Amazon do their checks (when you hit a certain level of revenue).
Depends how much you earn from day job and how much you’re looking to invest to start
Earning roughly 1600 a month after tax
You’d pay tax on earnings as a sole trader, higher rate when going into higher threshold which isn’t that far away.
So I’m allowed to earn my wage plus any profit from amazon upto £50270 at 20 percent?
That’s OK I’m only looking to top up my wage with part time retail arbitrage
You’ll be surprised how quick you might reach 25k in sales for the year and then start looking at tax implications. Bearing in mind in a dream world you might make an extra 5k profit on that 25k
But don’t I only pay tax on my profits not sales ?
If you are going to be selling commercially you will be subject to a verification where they will look for either a LTD or UTR number from HMRC
Only looking to sell in uk.
Doesn’t matter if its for profit in Amz eyes its a business entity
So how can I sell on amazon as an individual doing retail arbitrage when I don’t have a business?
You can but as soon as it suits Amz they will ask you to confirm your legal entity which is either LTD or self employed with UTR number
You might get away with it for a short time, or not at all, but if you are buying to sell to make a profit you need to be registered as such with HMRC. As soon as your turnover (not profit) is 1K HMRC requires you to be registered. Amazon require you to be registered from day one.
Can I not send a self assessment off at the end of the year ?
Yes that is exactly what you would do, but you need to be registered in advance as Amazon will request your UTR number (and household bills etc to verify you)
So I register as sole proprietor and then do a self assessment at the end of the year. But I need to register with hmrc how do I do that ?