I'm in need of a little help?

by **mark.yates56** on Sat Oct 15, 2011 11:08 pm

Hi can someone help me on this as i think what a company is doing is braking the law any info on the issue would be a big help thanks.

theres a company called YES running a car parts factors who runs an ebay shop called parts direct.

parts direct is owned on ebay by a member of staff who works for YES but all the profits from the sales go to the owner of YES when someone buys a part on ebay parts direct buys the said part from YES on a trade account then sells it on,

yes makes 30% on the sale to parts direct they make 30% selling it on ebay who is liable for the tax made on the sale also parts direct is trading as a Ltd company but is not regeistard as such same with VAT and have been trading this way for the past 6 years :?:

Thank you

by **mullet** on Sun Oct 16, 2011 11:26 am

1. I don't think you should be naming names on a public forum.
2. Why does this worry you? What is your connection?

by **mark.yates56** on Sun Oct 16, 2011 2:53 pm

Its my brother whos name the ebay shop is in the names of the companys does not matter i just needed to know if he is in the wrong

by **mark.yates56** on Sun Oct 16, 2011 2:56 pm

sorry that sou8nded better in my head then it did on paper lol

i wanted to find out cos i dont want him to get a 6 year tax bill when he just works for the company if that makes sense?

by **Generix** on Mon Oct 17, 2011 11:41 am

Ok so I followed it like this:

YES sell car parts.

YES sell car parts to 'Car Parts Direct' which is an ebay shop.

Car Parts Direct sell parts via ebay.

Is this right so far?

by **mark.yates56** on Tue Nov 29, 2011 6:59 pm

Yes sorry for the late reply

by **Generix** on Wed Nov 30, 2011 11:55 am

mark.yates56 wrote:Yes sorry for the late reply

So the ebay shop that sells the car parts, who does that turnover belong to? (if it is your brother then this is his business turnover - I guess for business tax purposes, but certainly for VAT)

Therefore I'm going to go with if it is his turnover he should be registered as SE and accounting for tax. If his sales breach the VAT threshold then he should be VAT registered also.

Others will no doubt give more info, as my knowledge of business tax is BASIC. If you have any questions on the VAT front then give me a shout back though

by **mark.yates56** on Wed Nov 30, 2011 6:37 pm

Thanks for the reply.

he justs works for the company he has used his detail to make the other shop as you cant use the same details for more then one ebay shop,
i think i can make it abit simple to under stand.

company X sells parts to company Y then that company resells the part on ebay but the ebay shop is trading as a Ltd company using company X's company details (Vat number - Company number) i have been told by a friend that it sounds like a phoenix company and that it needs reporting.