Are you making money from selling online?

Many people now sell goods online on sites like e-Bay.

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

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.