Hi everyone, I`ve been discussing this with a friend. Basically he`s thinking about going into buying and selling concert tickets in a big way, to try and make a living out of it. Ignoring the moral side of things, what would be his best way of paying the least tax while still being legal? If he went self-employed for this, would he end up paying his income tax, NI contributions etc based on the difference between the cost price per ticket and the selling price per ticket (his "profit")? Since he`d be buying a lot of his tickets online, would he be able to claim any tax back against computer purchases, bradband costs and the like? I`m not self employed, and have no idea at all of your obligations.
If he had paid for tickets now, but the tickets don`t arrive until after the start of April (and hence he can`t sell them until after April) what are the tax implications? If he pays VAT on the tickets (is VAT chargable on them) can he claim that back also if he registers for VAT? Would this be needed? He said he was planning on spending about 4000-6000 on tickets each month, and can expect to make an average of about 25-50% on the tickets. This would vary depending on what tickets are available etc, but it would give him a monthly profit of at least 1000, maybe as much as 3000 per month, for a total turnover of between 48,000 and 72,000. Would he need to VAT register for this?
If people are unwilling or unable to answer the above questions, does anyone have any idea how good the information supplied by the IR is, and the best way to get it and register for self employment?
Thanks for your help.