Tax on revenue from sold iPhones

[AleenaUk]

Hi everyone here on MacRumors, I've got a simple question related to trading iPhones. In my spare time I buy and sell iPhones, and in the past month I've made a significant profit from them (I sold quite a few ones to a phone repair shop that bought them all). My question is will I have to pay tax on the profit that I made on the phones, and if yes, at what rate, and in what tax band would I fall? I earn about £30K from my salary, and I made a profit of around £2,500 last year on iPhones, will I pay tax on it at the basic rate? I tried to figure it out with online tools (like this calculator), but there are no options for such income type. Has anyone been in the same situation before here on MacRumors?

Many thanks for your help.

 

[MacDawg]

Prolly your best bet is to actually talk directly to a tax accountant
You may or may not get good advice here on MR from random anonymous users

 

[0007776]

Legally yes you will need to pay tax talk to an accountant to find out how much, you do not want to share enough information on a public Internet forum for anyone to give you an accurate estimate. If you got all the money in cash you can probably avoid reporting it.

 

[AleenaUk]

@mrkramer, that's a good point, I'm just afraid if they would check the accounts of the phone repair company that bought the phones and see where the money went, they could potentially investigate and trace me - but I'm probably too paranoid here and I feel bad as well because I don't want to "cheat" the system...

 

[RecentlyConverted]

Why not register your phone business as having its headquarters in Ireland and see if you can get a favourable tax rate?

Seriously, as you have entered into trading phones to make a profit, then yes you will be liable to tax. You need to speak to a tax specialist to make sure you claim all allowances available to you. Also if you are classed as a retailer (of second hand products) you may have some product guarantee liability. I would check that out also.

 

[Dave Braine]

It would be classed as unearned income, so technically you should be paying tax at your normal rate. You see newspaper articles now and then about how people doing a lot of selling on eBay are liable for tax.