Can Accountants In Dunfermline Tell Me If I Am Trading? (As Defined By HMRC)
As Accountants In Dunfermline we are often called by members of the public who are concerned about whether what they are doing amounts to a taxable activity. This question is asked by many people in situations where they are selling but wonder if what they are doing amounts to a taxable activity. Frequently they will call up Accountants In Dunfermline to ask their opinion, and we then have to look at the material aspects to try to ascertain if what is being carried out is indeed a trade or taxable activity. It is important to get this right as HMRC will fine you heavily for not registering with them at the correct time or indeed submitting a tax return.
There are many factors that are indicative that you may be trading such as whether you bought with a view to sell at a profit, whether it is the same items you keep buying and selling or indeed if a loan is involved that can only be repaid if the item is sold. As all Accountants In Dunfermline will tell you, there are no black and white rules but there are many indicative signs.
A Detailed Video By HMRC
HMRC recently released this short little video, many Accountants In Dunfermline are showing it to their clients, its a real gem in trying to ascertain whether what you are doing counts as a taxable activity or not. Please remember the video is a guide and is not a set of rules. For a more detailed exmaination fo whether you are trading or not, please do call OnTax Accountants Ltd for more advice.