proebayer

If you are running a business online you will be regarded as self-employed for this trade and you must register with us and possibly complete a tax return.

You must register to let us know within three months of starting your business, or you could pay a penalty. If you only sell occasional items then contact HMRC for further advice.

Heard of affiliates?
Affiliates are the e-commerce version of the traditional agent/referral sales model. An e-commerce affiliate is a website that advertises products or services, but refers potential customers to an e-commerce site to purchase the product. For example, many affiliates refer customers to sites like Amazon.com. If the customer makes a purchase, the affiliate who referred them normally receives a small payment.

Affiliates may be liable to pay tax on the payments they receive for referrals. If you are uncertain of what your status is, contact HMRC for more guidance.

Find out now how to register as self-employed and read about the taxes e-traders are required to pay.

Do you qualify as self-employed?
If you can answer 'Yes' to all of the following questions, you are probably self-employed:

Can you hire someone to do the work for you? Do you pay their wages with your own money?
Do you risk your own money in the business?
Do you provide the main items of equipment you need to do your job? This doesn't include the tools that many employees provide for themselves.
Do you agree to do a job for a fixed price regardless of how long the job may take?
Can you decide what work to do, how and when to do the work and where to provide the services?
Do you regularly work for a number of different people?
Do you have to correct unsatisfactory work in your own time and at your own expense?
If you answered 'Yes' to these questions, find out here how to register as self-employed.

If you answered 'No' to most of these questions, then you are probably an employee. Check what this means in tax terms.

Are you working in more than one job?
Did you realise that you can be an employee and self-employed at the same time?

For instance, you can be employed working part-time as a mini-cab driver or in a shop, and at other times run your own business from home. Or, you could work full-time as an employee, and run your own business in the evenings or at weekends.

If you do work for yourself, whenever this is and whatever this is, you must register as self-employed.