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You have incorrectly selected individual legal entity during the registration of your seller account ?
Hoping someone can offer some assistance ?
I recently opened a seller account, I don’t have a registered business and I’m not a charity so selected the “Individual” option. All gone well so far, listed and sold my first product by FBA ( just 10 units to start with to get the feel of things ) first disbursement due end of this week. Today I received an email saying the verification of my bank account is on hold due to incorrectly selecting the individual legal entity during registration. To proceed with verification please select the correct legal entity ?
I am a small scale seller and don’t have a registered business - if you are not able to sell as an individual entity why does it offer you that option ???
Help would be really appreciated.
5 replies
Seller_RlZVPg3d6ZUGP
If you buy items to sell for a profit then you are a business and you need to register with HMRC as a sole trader (or limited company) and complete self assessments.
If you are just selling off a few things from home then you're fine as an individual but you cant sell anything as New
Seller_ZVAz3d5lZuGid
As above reply - the Individual Seller Account is ONLY for selling off your own personal second-hand items such as books, DVDs,CDs etc. You cannot sell NEW goods with the individual account., but you can be on the individual selling plan (which is different to the account type (legal entity).
If you are buying goods to sell on for profit then you MUST register with HMRC as self-employed, probably sole-trader. You DO need to have an Amazon BUSINESS seller account, and be registered with HMRC.
Seller_MT8rt0A2OpbCx
There have been adverts recently from HMRC about "side hustles" and the need to be registered as a sole trader or Limited Company. Find out more on HMRC website. Do not take any notice of any guides on social media, YouTube, etc.. There is more misinformation than fact to get you into trouble.
All online platforms, such as Amazon, must now submit information about sellers to HMRC. If you have sold multiples of a product, then Amazon have already seen this as a business, rather than an individual selling your own unwanted property.
You had better get properly set up before HMRC start issuing penalties. Whilst you are at it, research all the regulations regarding distance selling, consumer law, taxes, VAT, WEEE (if it applies), Data Protection (GDPR), etc. Most important, Seller University. All that should keep you entertained for a day or 500.
Welcome to Amazon 😀 - who said it was easy?
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