When does a new business “start trading” (need to register within 3 months from which date)?
I want to set up an Online business (as well as selling on Auction Sites) and have been “collecting” stock for the past 3 months – BUT HAVE NOT SOLD ANYTHING YET. I understand that I must inform HM Tax Office “within 3 months of trading”. I do not intend to start selling until I have built sufficient stock up.
Question : Am I trading yet (ie. do I need to inform the Tax Office yet ?)
Thanks.
Contrary to the above answer, you are neither self employed nor Trading yet. You are merely building your assets ready for going self employed.
You are considered both self employed and trading when you start ADVERTISING your products, ie when those products hit the web, thats trading. It is not your first sale, but your first advert.
What you should take care of is that when you are doing tax, you can only claim expenses for the past tax year, and at their discretion the prior year. So, in the form you complete in April 08, you can claim stock costs for April 07-April 08, and perhaps April 06-April 07, but any stock you purchased before that, you cannot claim back on, and hence it is your own expense.
Saved By The Bell Season 3 Episode 15 Date Auction Part 2
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