Epik

Tax on sales

Labeled as advice in General Domain Discussion started by Lagunaboy, Jan 8, 2019.

Replies:
12
Views:
508

  1. Lagunaboy

    Lagunaboy Established Member

    Posts:
    389
    Likes Received:
    505
    Hi guys, having not sold a damain before, I was wondering what happens when you do regarding tax. I'm in the UK so is tax automatically taken from sale or do I have to declare all sales earnings to the tax office and pay as self employed ?
    To your relief I won't be responding to any advice but I will be watching and learning. Thank you
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. briguy

    briguy Guru In Remission! VIP ★★★★★★★★★★

    Posts:
    19,340
    Likes Received:
    63,438
    This Canadian claims all his sales and online income.."paper trial"

    Sure dont want what I didnt do this year biting me in the azz next year or the year after
     
  3. maxtra

    maxtra Upgraded Member Gold Account VIP

    Posts:
    2,939
    Likes Received:
    1,667
    All my transactions go to my QuickBooks Self-Employed account and I calculate/pay tax there

    From USA
     
  4. creataweb

    creataweb Top Member VIP ★★★★★★★★★★

    Posts:
    5,478
    Likes Received:
    6,366
    Hire a tax pro is the best way to go. Different laws everywhere :)
     
  5. MapleDots

    MapleDots Domain Properties 2010 - 2019 VIP

    Posts:
    4,229
    Likes Received:
    8,351
    There are income taxes and Sales taxes in most places

    In Canada we have to collect sales tax if you sell over 25k a year which for me is pretty well every year.

    I do get that tax back but I then have to claim my income under income tax but right now I am spending any profits on new purchases so the tax base goes way down.

    Anyone that tries to circumvent taxes (and trust me I know a lot of people that do) will eventually get caught. Other than bitcoin all forms of payment including Paypal are government monitored and Paypal is mandated to report funds moving through accounts.

    Taxes seem to be something a lot of domainers think they are immune too.
    If you run domaining like a business there are tax advantages so simply reporting income and not registering as a business leaves a lot of money on the table that could go back into profits.

    Varies country to country but in most cases the principles are the same.
     
  6. D Haynes

    D Haynes Active Member VIP

    Posts:
    958
    Likes Received:
    1,716
    I'm no expert but here what I've been led to believe...

    You don't have to declare anything less than a grand.

    Between a 1 and 11850ish grand (depending on your personal tax allowance) you don't have to pay tax but have to declare your earnings.

    Bare in mind these figures are for everything you earn over all income streams whether it's domaining or your day job.

    For domaining income (if it becomes big enough) you'd have to set up as self employed and do a tax return (self assessment on line is easy) every year.

    Also remember that you would only pay tax on any proffit and not the final sales price so you would take off the purchase price of the name and any listing fees or renewals etc and there's probably ways you can write off tax through expenses (office fees, company vehicle, business dinners, reinvesting into new inventory etc).

    This is just what I've been led to believe and should not be taken as fact. If you sell enough names to pay tax you should research thoroughly. HMRC website is easy to use.
     
    Last edited: Jan 8, 2019
  7. lock

    lock Traffic.tools VIP

    Posts:
    2,026
    Likes Received:
    1,978
    The idea is earn lots and get an accountant to worry about it for you.
    I am trying to slash dot tax with a domain name my last reg hehe..
     
  8. MrAcidic

    MrAcidic Upgraded Member Gold Account VIP

    Posts:
    985
    Likes Received:
    1,404
    https://www.gov.uk/government/publi...ent-helpsheet/hs325-other-taxable-income-2018
     
  9. eurorealtor

    eurorealtor okre.com VIP

    Posts:
    1,646
    Likes Received:
    1,434
    In Czech Republic is a new Sales Revenue Law system called ETT, Tax office is getting control of every transaction right away. As of now it is "only" working for cash and terminal transactions (item sold over the counter). But I am pretty sure soon they'll find out a way how to cover all "holes". And I think UK may have a similar tax law. This is my first tax filling in the EU since 2003. In the US it was "pretty simply"

    [​IMG]

    1. An entrepreneur sends an XML transaction data message to the Financial Management system.
    2. The Fiscal Identification Code is sent from the Financial Administration system.
    3. An entrepreneur issues a receipt (including a fiscal identification code) to the customer.
    4. he customer receives a bill.
    5. The customer can verify their receipt on the Tax Portal, and the entrepreneur will verify the sales recorded under his name in the Electronic Revenue Records web application.
     
  10. Furquah

    Furquah Skipper VIP

    Posts:
    2,880
    Likes Received:
    1,896
    My Gov takes 18% (it's ridiculous but what I can do).

    It's called GST & The last month alone Paypal sent Rs, 9k to my gov. Again it's ridiculous but what I can do.

    I am after all a poor student who doesn't even know anything.
     
  11. D Haynes

    D Haynes Active Member VIP

    Posts:
    958
    Likes Received:
    1,716
    UK higher tax bracket is 45%. Not THATS ridiculous lol. Easy to see why people try to dodge it.
     
  12. Furquah

    Furquah Skipper VIP

    Posts:
    2,880
    Likes Received:
    1,896
    Now please compare the UK per Capita income to India per Capita, you will see why I said is ridiculous

    Screenshot_2019-01-08-16-25-24-113_com.android.chrome.png

    .......


    Screenshot_2019-01-08-16-26-30-224_com.android.chrome.png
     
  13. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent VIP

    Posts:
    2,291
    Likes Received:
    4,594
    Of course you need to look into the situation for your country and state/region.

    There are potentially two types of tax.
    • Do you have to charge tax when you sell? In Canada, if you expect sales of $30,000 or more you need to GST/HST register and charge (but it also gives you benefits on claiming tax you paid). If less than that it is optional. I note that $25,000 was quoted by @MapleDots so maybe there are provincial rules that kick in a bit earlier. I am always safely below either figure and I have not opted to charge.
    • You must, as I understand it, claim money made as income, no matter the business arrangement you have, and I have always done that. The legal structure you use (e.g. sole propritorship vs registered corporation) influences how you report it. As a small business you can report certain things as expenses, so it is not strictly net revenue vs acquisition costs. It is a headache to track things (I use spreadsheets) but it is essential to do so.
    Bob
     

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
Topics / Tags:

Share This Page

  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...