Becoming a wholesaler.

[spacecowgirl]

Hi everyone,

If I wanted to become a wholesaler and import the goods I was gonna sell from the US, what would I need to do?

I mean would I need a special licence or something? surely I can't just buy a load of stuff in bulk and then that gives me the right to call myself a wholesaler.

Thanx
Kayley

[Netcomm UK]

AFAIK, that's about it, although obviously you'll need to register with Customs and see what duty is due on your products, register with IR etc and all the normal stuff.

[Transconnex]

To be honest you dont need to bother registering with anybody. Just buy it, pay the importduty and reclaim the VAT on it. Then off you go.
I know of several people who have set hemselves up with wholesalers, from computers to spare parts.

[Netcomm UK]

That's a bit misleading though. You still have to register as self employed etc.

[Transconnex]

Exactly why would he need to register as self employed? if they are doing it as a business, then they may have to. But for the pure mechanics of buying goods from abroad and bringing them into the EU, then tax position has very little to do with it.
And registering as self employed is probably not what you would do if you wanted to become a bona fide importer/wholesaler. To qualify for letter of credit shipments, which the vast majority of imports are, then you would need to either be a Ltd or registered sole trader.

[Adam]

The important issue is that if you trade and have not either 1. Registered as self employed 2. Set up as a ltd company or 3. some other options you WILL GET FINED by the Inland Revenue.

Of course hobby buisness' are different. You have I think three months from starting to trade to register. There is also a rule about paying Class 2 NI contributions of £2 per week.

The details may be wrong but you get the idea.

Check out the IR website.

[Netcomm UK]

Cheers Adam,

That's all I was trying to get across, not to forget the important bits, not just necessarily self-employed etc.

[Adam]

My pleasure Netcomm.

Great minds and all that. Your points on the ringtone site a few topics ago was very valid. It can be a nightmare doing your own site although the money is better. Most my customers do a more personal service!

With the limited company side of things, it can be a lot of hassle so do watch out. I am forever filling in forms which can be quite tricky so think carefully if an LTD is what you want or need.