HMRC are using a search engine device to track down traders who sell large quantities of goods on eBay and don’t declare their earnings. Also, HMRC are looking for those traders who are not VAT registered
HMRC expect the initiative to earn an additional £1million in VAT annually. For those wondering about the rules, for anyone in business selling second hand goods, bought from non-VAT registered individuals, the business is generally only liable to pay VAT on the profits and not on the full VAT-able turnover of the business.

It is believed that around 70,000 people earn 25% of their annual income trading on eBay.

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