Ding dong taxman calling!

HMRC have indicated that later in the year they will be looking in to the tax affairs of those selling beauty products and lingerie door to door or at parties in their own homes.

This follows on their stated intention of examining the tax affairs of those selling goods on the internet. HMRC are keen to ensure that all such folk are properly dealing with the profits they are making. There is a clear distinction between selling the unwanted contents of the attic and buying in goods for onward sale. The latter will be treated as a trade by the taxman the profits from which will be taxable. The same goes for products sold door to door.

So the internet, doorstep and party business men and women will come under the taxman’s gaze. All involved will need to ensure that their business records and tax returns properly record and reflect the business profits they have made. Happy selling!