My supplier wants to be paid in cash

[Katman]

Hi

I have an ebay account and I was asked by a friend (he doesn't have an ebay account) to sell a high priced item (around 700 euros). If it sells I will get a 100 euro cut.

The only thing is that my friend wants to be paid in cash, if the item sells. Since the money trail ends with me, will I get whacked by the taxman next year for the tax on the full amount of the item? Is it even worth my while doing this? I think not but I'd like others view on this also.

Thanks

 

[mick1960]

If you buy an item for €600 and sell it for €700 you have made a €100 you pay tax on that.There is no way the tax man can know where you got this item and how much profit you have made till you tell them.I would be more worried about your rating on e-bay and the come backs.

 

[DrMoriarty]

Make sure you both take into account the associated listing fees, final value fees (typically 10% of the sale price) and PayPal fees. If the item sells for €700 you could end up with not much more than €600. As mick1960 points out, you'll be liable for tax on your net profit, which is up to you to declare.

 

[Smashbox]

scam

How is it a scam when the OP said 'friend' ??

 

[Katman]

scam

Ehh, he really is a mate of mine. he has no bad intentions. If he does... i wont buy him a pint on sunday night.

Seriously though, thanks everyone for your feedback.

 

[extopia]

You didn't say what the item is, but there's no tax payable on profits from casual sale of personal second hand goods. Granted, this is not your item, but in the extremely unlikely event that the Revenue got wind of the sale, I doubt they would pursue you or your friend for tax.

Nothing to worry about. Unless... you describe your friend as your supplier. If this isn't about sale of personal goods (wasting chattels) the situation could be different.

 

[MOB]

"Since the money trail ends with me, will I get whacked by the taxman next year for the tax on the full amount of the item? "

I remember once getting hoots of derision from ( of all things) a group of accountants (admittedly in a pub setting) for the simple assertion that, contrary to popular belief, cash receipts are also taxable. The money trail does not end with your receipt of the money - so long as you keep a proper record.