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There are no items currently listed to support this charity. List an item in support of this charity. Support this charity by creating a listing, and you can donate between 10% and 100% of the sale price. You'll get a fee credit on your eBay listing fees, and your donation will be collected automatically 3 weeks after your item sells. Sell an item | What do you care about? Civil Rights and Citizenship Culture, Sport and Recreation Environment and Protection of Animals Housing and Community Affairs Social Services and Relief Make a difference close to you Search eBay for Charity itemsOnline sellers who use Ebay, holiday letting websites and other internet retailers will face one of the "biggest tax crackdowns in history" under government plans to obtain details of millions of online transactions. HMRC wants to collect "bulk" information from internet companies to target thousands of people who fail to declare income they make online, costing the taxman billions of pounds every year.
The new powers will give the taxman access to information from Paypal, the online payment company owned by Ebay, smartphone app stores run by Apple and Google, holiday comparison websites and a host of other online retailers. It means that thousands of Britons who let out their homes on the internet or sells good on eBay without paying tax will be targeted and have their affairs scrutinised. According to a consultation published by HMRC, the taxman will be able to use the powers to collect the names, addresses and revenues of any businesses which use the websites. They will then compare the information with tax returns filed by the businesses and use it to pursue those who have failed to pay. Senior tax accountants told The Telegraph that the scale of the data collection is "huge" and amounts to a "radical" change in the way that HMRC conducts its business. They warned that it could lead to "fishing expeditions" which could see small businesses and modest hobbyists sent "frightening" letters demanding they payment of taxes which they do not owe.
I quit the 9 to 5 and now gross £1m a year selling on eBay' The accountants also raised concerns about the ability of HMRC to handle so much information and warned that the "huge" databases will have significant security and privacy risks. HMRC has insisted that it will only collect data about businesses that use the internet to sell goods and services rather than those who are buying it. Rebecca Reading, a corporate tax partner at Baker Tilly, said: "This would be one of the biggest tax crackdowns in history. It seems to me that this is a massive exponential growth of data between something we're all familiar with, such as collecting interest on bank accounts and savings accounts, to millions of online transactions." In 2013, HMRC gained new powers to access information about credit and debit card transactions online which led to 14,000 people being contacted about potentially outstanding tax bills. However, the existing legislation does not cover "electronic payment providers" such as Paypal, which is used by more than 20million people in Britain to pay for goods and services online.
It is one of the main methods of payment on Ebay. Paypal is now expanding and can be used in more than 8,000 shops and restaurants, as well as petrol stations. Apple has also launched an electronic payment system that will enable people to pay with their iPhones. The new legislation will cover electronic payments alongside price comparison websites for everything from holidays to insurance and takeaways. , AirBnb and Justeat. It will also extend to smartphone app stores run by Google and Apple, amid concerns that a new generation of businesses is failing to pay its full share of tax. The move, which is likely to require significant upgrades to HMRC's IT systems, will raise £860million over the next five years, according to Treasury forecasts. A consultation ends in October, with the new law is likely to come into force next year. Many of the websites are used by middle class professionals who set up small businesses on the websites to bolster their income. Professionals also use websites like Airbnb to rent out their homes to tourists.
In some cases, people have been targeted who make as little as £100 profit online. Any earnings above an individual’s tax-free personal allowance – £10,600 for the 2015‑16 tax year – are taxable if the money made is considered a business profit. Anita Monteith, a tax expert at the Institute of Chartered Accountants in England and Wales, said: "Where people have a business they should be paying tax. "My worry will be that we will be frightening people because they don't like getting a letter from HMRC. I would like to see if this follows through much more and better information coming from HMRC. There are also concerns about how HMRC will cope with so much data. Mrs Reading said: "How on earth are they going to manage this amount of data? We deal with HMRC daily, and even with basic tax returns the processes don't run smoothly. They don't get the basics right." They also raised concerns about the security of the data. In 2007 HMRC lost data disks containing the personal records of 25million individuals, including their date of birth, addresses, bank accounts and national insurance numbers.
Miss Reading said: "After HMRC lost a lot of customer data around 10 years ago, they shied away from this mass data collection because they were afraid of whether they could protect it. "This seems to be going back towards massive access to data. One would hope they can comply with confidentiality." The consultation states: "HMRC does not intend to use the data to examine the volume of payments made by individuals, to examine amounts that people have received not through their business activity (for example electronic transfers of money between friends), or the nature of transactions conducted by individuals." A HMRC spokesman said: "We want businesses to pay their fair share and ensure legitimate traders are not left struggling to compete against tax cheats. "That’s why we’re consulting on updating HMRC's existing data collection powers for the digital age. "The information will only be used to identify businesses that are breaking the law by evading paying the tax they owe.