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Where Taxpayers and Advisers Meet

FOUND OUT I OWE TAX AND AM IN TROUBLE HELP ?

Craig12345
Posts:1
Joined:Tue Aug 29, 2017 5:46 pm
FOUND OUT I OWE TAX AND AM IN TROUBLE HELP ?

Postby Craig12345 » Tue Aug 29, 2017 6:00 pm

Hello all thank you for taking the time to view my thread.

I will explain my situation the best way I can.

I started by selling a few spare tickets online as I could not attend a gig.

I then sold a few more to make a profit. I know this isn't the greatest way to better yourself but I haven't got a lot of options open to me and to cut a longer story short I tried to make enough money to be able to set myself up in life doing something 100% legit shall we say.

When I started I only sold a few nothing major but things kind of spiralled so I contacted the secondary ticket resale platform I used to enquire about tax. I was told over the phone that all tax and VAT is added in the checkout process.
I have been informed now that in fact that is a lie, they only charge VAT on their commission. I phoned them a week ago and still state that there's nothing to worry about.

I have been in touch with an accountant and he has advised me this is incorrect and I have to pay income tax. Something I can handle. But he has advised me about VAT and is 20% on turnover and not profit. Some tickets I buy for £60 and sell for £70 only making £10 but would have to pay £14 VAT. I was misinformed by this company but obviously I know the HMRC won't just accept that. I want to go all legit (well to be honest get out of this game as I know it wasn't forever)

I have turned over approx £200,000 yes it has proper snowballed and I have made approx £50,000 profit. Income tax would have been ok and a bit of a bitter pill to swallow but the VAT would crush me, as well as the late registration fees and late returns I would be dead.

I am still going ahead with the accountant and are hopeful for a temporary VAT break as I have only dipped in to the threshold since June this year.

Would anyone have any advice ?
I understand this type of thing is a little frowned upon but I don't have a lot going for me and have literally sold my own clothes to try and better my life to try and do something. My intention was to be legal and still is.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: FOUND OUT I OWE TAX AND AM IN TROUBLE HELP ?

Postby darthblingbling » Wed Sep 06, 2017 11:32 pm

was this over a number of years?

You would have paid VAT on the purchase of tickets so you may be able claim this back to offset the VAT on the sales. If this wasn't the case then you may be able to apply for the margins scheme so you only pay VAT on your profit if the tickets qualify. I must admit I'm no VAT expert however, I'm just going off previous experience from when I was selling used goods over eBay.


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