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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5614
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

Ive been selling stuff on the internet for a year or so and

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Hi, Ive been selling stuff on the internet for a year or so and was unaware I had to register as a sole trader, im in a bit of a mess.. no receipts as I source stuff from car boots etc. I do have ppal records etc and have been told by other resellers they keep a ledger with all goods they pay for and get no receipt so I need to start doing that
Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: i don't think so, although currently i am employed i am looking to go fully self employed and want to do it right..

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

You say you have been selling stuff for a year or so.. please advise approx date you started this business. It is not too late to register as a sole trader.

Do you currently file a tax return?

Many thanks

Customer: replied 8 months ago.
i don't currently file a tax return I'm paye at work. i kind of fell into reselling after selling my own stuff on ebay so it is hard to pin down exactly when i started.... i would say around jun 17
Customer: replied 8 months ago.

Thank you for your reply.

Drafting my answer

Thank you for your patience.

I am a qualified accountant in practise. This is what you should do ...

Register for self assessment as a self employed soletrader. You can register here

As you stared to trade around Jun 2017, your first year of trading is tax year 2017-18. I suggest you prepare your first set of accounts to 5 Apr 2018 and annually thereafter to 5 Apr. You should file your tax return for accounts to 5 Apr 2018 no later than 31 Jan 2019 if you decide to file your tax return online.

As far as accounting records go, you should maintain a cash book to record all receipts and payments. If takings are banked then you should keep/retain your bank statement to show all business related receipts.

Where you buy things from boot sales and don’t get a receipt from your supplier, you should make your own receipt detailing items bought and price paid to support your purchases.

As far as first year of reporting goes, in the absence of proper records you should reconstruct your accounts from paypal records and/or any other information you have e.g. diary records.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 8 months ago.
thats a good help, it gives me a starting point. I was considering getting quickbooks and consulting an accountant near me until i get the hang of it.. what do you think..

Thank you for your reply.

I would start with basic spreadsheet rather than using an accounting software.

If you get stuck you can ask me questions here and I would help you initially. By all means consult an accountant but have a go using this route in the first place as it would be mucher cheaper than engaging an accountant.

I hope this is helpful and answers your question.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it by Just Answer. and other Tax Specialists are ready to help you
Customer: replied 8 months ago.
great thanks, ***** ***** some homework to do!!

I thank you for accepting my answer.

Best wishes and happy accounting.