At what point do I become a business liable for taxes?

Well, basically, I've sold a couple of computers on eBay recently, a couple I made up from spare odds and sods I had lying about, a couple I made from ordering a few spare parts in. Obviously I'm making a bit of money from it.

Now, I'm generating quite a bit of interest in my computers, because they're reasonably priced, it's getting to the point where it's hard juggling it with my day job. What I want to know is, at what point do I stop being a private trader selling a few bits and pieces to becoming a proper trader who has to pay taxes on his profits?

I, like most people, don't particularly want to pay taxes, but I don't want to get stung by the Inland Revenue either. If business takes off, it's inevitable I will have to pay business taxes, but at what point?
Thanks for all your replies – stitched up, I've sold a handful of computers and made about £500 profit over the course of about 4 months – I don't think I'm taking away the bread and butter of other traders!

The point at which you become a business is when you start building these computers with a view to making a profit. It is the motive that is important although it is an unwritten rule that HMRC will assume it is still a hobby if your turnover is less than £800 a year.

Note that was turnover, not profit. Anything above that and you need to have your reasons for it still being a hobby ready to trot out when challenged.

Ebay listings are examined regularly with a view to tracing businesses which are not declaring their income. You are probably still under the radar but I wouldn't let the business grow much more without declaring it.

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