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08 Nov 2009 - 22:2722183
soooooo apart from missing registration and info on the site

I think overall its a good site and is alot better the navigate then other sites

and once everythng has been sorted I think i will be using it myself- and when i get some money of course haha


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In the words of pilz-e the squirel- "Run from the burning eyes of the angry lady!"
08 Nov 2009 - 22:3322184
Quote Jacobar:
I have looked into things like this otherwise i wouldn't have started.
I am a DISTRIBUTOR For a stockist in China.
Therefore i am not self-employed.
I am more or less employed BY the stockists.
I understand you are more or less looking out for me, but i have been discussing this with the stockists, and they have said, that i dont need to do this as i am working for them.


uhm... changes nothing. except now you have to legally disclose the original supplier too.

this is the law. don't start getting annoyed like last time and accuse people of picking on you.


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Last edited by xaerael (08 Nov 2009 - 22:34)
08 Nov 2009 - 22:3622185
Quote xaerael:


uhm... changes nothing. except now you have to legally disclose the original supplier too.

this is the law. don't start getting annoyed like last time and accuse people of picking on you.


I know this, and im getting my documentation for it,
And im not getting annoyed, i really appreciate the help!
And i havent accused anyone of picking on me!?


08 Nov 2009 - 22:4222186
Quote Jacobar:
Quote xaerael:


uhm... changes nothing. except now you have to legally disclose the original supplier too.

this is the law. don't start getting annoyed like last time and accuse people of picking on you.


I know this, and im getting my documentation for it,
And im not getting annoyed, i really appreciate the help!
And i havent accused anyone of picking on me!?


just trying to keep the calm.

you're still wrong about several things, passing on responsibility to your supplier doesn't change much because you're essentially claiming to be a UK subsiduary of the chinese based company, which i highly doubt will sort out your UK tax. you really should seek professional advice, because i honestly think the company you're "working" for is setting you up to take their tax expense.

[edit]

and checking up on things, if they take the money and run on your orders without sending out the items, you're libel for the refunds.

just thought you should know that nugget of information.


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Last edited by xaerael (08 Nov 2009 - 22:46)
08 Nov 2009 - 22:4522187
I know, I know.
But out of the 4 sales in the past 2 days, nothing has gone wrong.
We're just going to have to see.
But yes, i will be looking into all the legal stuff tomorrow as i have a free day at college so i'll be on here all day -_-;; xD


08 Nov 2009 - 22:4722188
Quote Jacobar:
I have looked into things like this otherwise i wouldn't have started.
I am a DISTRIBUTOR For a stockist in China.
Therefore i am not self-employed.
I am more or less employed BY the stockists.
I understand you are more or less looking out for me, but i have been discussing this with the stockists, and they have said, that i dont need to do this as i am working for them.


*sighs* I'm going to make this my last post on the matter because this is tiring.

It is my belief from what you've said that your business is illegally run and I do not condone our members order from you.

It's not a matter of wording, distributors are typically entirely separate companies that pay their own taxes and such. I do not believe you have an employment contract with them, and since the money from your store is going into your paypal account and not theirs that still makes you a trader that is required to pay tax.

I would suspect the company in question is not giving you good advice, maybe they are not knowledgeable on UK tax law or maybe they don't care.

Also I strongly believe you are lying when you say Milanoo is not your supplier. The co-incidence answer doesn't really hold much weight, so that is endearing you to me even less. And since there have been some reasonable doubts raised about the quality of their products that make me question the whole endeavour even more.

To be honest the whole business plan seems flawed because you're not really offering anything. People can order from Milanoo themselves for a similar price. You're a middle man, an extra step they don't need to slow down the process and make it more expensive. And the markup you're going to make is so low it's all going to evaporate once you get hit by customs for a shipment.

I'm sorry to be so negative about all this. People setting up their own businesses is great, I have done this myself and am pleased to have been quite suceesful at it. I just think you've rushed into this without understanding where you stand legally and with a business plan that doesn't make much sense.

Anyway, I am going to leave this all now for yourself and other people to discuss. But I think you should read up on UK tax law yourself and not rely solely on the advice of a supplier looking to make some money from you.


08 Nov 2009 - 22:5022189
Quote Jacobar:
I have looked into things like this otherwise i wouldn't have started.
I am a DISTRIBUTOR For a stockist in China.
Therefore i am not self-employed.
I am more or less employed BY the stockists.
I understand you are more or less looking out for me, but i have been discussing this with the stockists, and they have said, that i dont need to do this as i am working for them.


I'm finding it confusing to how the business is structured

Are your stockists paying your national insurance contributions and tax on your income? Do you pay the supplier and then sell on the costumes or are the customers paying the supplier who then pays you a fee? either way it seems to me your income is earned here in the uk not abroad so my understanding is that it is subject to uk tax/business laws.

This is my experience to try and put where i'm coming from into perspective for you:
I am self employed as a Jeweller and I also work freelance for an artist who pays me a substantial wage but I AM responsible for paying national insurance contributions (Class 2- a fixed weekly rate and class 4 which is based on the income/profit i earn) and any tax on the income I earn (the joys of filling in a tax return!)

anyone please correct me if i'm wrong on any this!


08 Nov 2009 - 22:5222190
So people place orders through your site, the items are provided by the Chinese stockists, and they give you a cut for your trouble?

That would be this:

Quote PerrinAshcroft:
A quote for you: "You are trading if ... you sell or buy goods for other people and receive money for this (for example on commission)"


The advice you have received in this thread is from people who know what they're talking about. If you're still doubtful then go to your bank and discuss it with someone there, but they will undoubtedly tell you the same thing. In any case, for the sake of your own safety, what harm will it do to suspend the site temporarily while you check and double check that all your bases really, really are covered?


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Cara bell', cara mia bella, mia bambina, o ciel!
08 Nov 2009 - 22:5722191
Can i just say (not being rude at all)
If i hadnt had confidence in this, i would not have started this at all.
I do appreciate your concern. But im no middle man. I am a UK branch for my stockists. They are a factory making costumes, wigs and all the things i sell for them.
And this... milamoo thing. i have no idea what it is, and are not my stockists.
They needed someone for the uk, and i took up the opportunity (i asked them).
What ever i sell, i keep the profit as payment for selling it. (Hence linked to my PayPal)
I am the price that the stockist told me to sell at.
If you dont want to buy from here, then don't (i wish you would) But its about trust.
And I would NEVER think about scamming ANYONE! So,
This is my last word on this.
If you would like to buy something, then thats really great, if not, then its your choice.


08 Nov 2009 - 23:0222192
x_x.... i'm standing by perrin on this one now. you're more effort than it's worth.

the taxman will tell you all about it when he catches up with you. and he will catch up with you.

we've warned you, we've reasoned. don't cry when you're in court.


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09 Nov 2009 - 00:0222208
Good to know you're taking on board at least some of the suggestions. But Jake, you do need to be more careful about the legal side. The people in China told you things, but those things may not necessarily be true. If you're self-employed, then you'll need to do the legal work for that. If you're working for the stockists, employed by them as you say, then have they offered you any sort of contract? Even if you get a percentage of each sale rather than a monthly wage, you still need to have signed a contract before you can be considered employed. And, even if you have signed a piece of paper, do you know if it's legally binding? Anyone can type something, print it out and get another person to sign.

Not to say that your suppliers are bad people, but don't just trust everything they say, and take the time to look things up, okay? There is a chance they just want the business to start asap so that they can profit, so they don't fully inform you of all the legal things. You're here and they're in China, so if something does go wrong, you're the one in trouble and you can say whatever you've been told, but the tax office won't do anything about that.

So be careful, okay?


09 Nov 2009 - 00:2122217
http://www.hmrc.gov.uk/international/faqs.htm#3


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09 Nov 2009 - 01:0722219
*Facepalm* Not again...

Also, not to be a party pooper or anything, but doesn't: "Commercial adverts:
Please note - this area is for non commercial use only, for our members to sell between themselves. If you run a store catering for costumes or supplies please add yourself to our shop directory. Any commercial adverts will be deleted. "
Come into play here? I mean.. his site clearly isn't hand made commissions or anything.. Correct me if I'm wrong?


09 Nov 2009 - 01:2322222
you're not wrong.

i've done a bit more digging, and i have to say, the OP seems either shockingly naive, or blatantly criminal. the website is breaking more commerce laws than i knew of.

buyers beware.


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09 Nov 2009 - 10:1922229
Hmm I dunno what to make of the site, it needs to be set out a little better.

Putting all the costumes, wigs and assessories in one place is just too much.

You need seprate places for each, and if it's game, anime, movie etc.

I for one had hardly any clue what half of the cosplays were and what they are from.

And also, some of them are the exact same costume with different prices.

Also, where are the shipping fees? I mean there has to be postage and such like? You cant expect the people in china to make the costumes and not get a profit themselves. To be honest...I dont think this site is going to work out untill you work out everything within that company.

Also even if you are a branch of this hong kong thing you should at least have a uk branch, or someone that can answer to everyone else.

Look up all the rules about running a buisness, when it comes down to it, you do need to pay tax because you are a trader and they all pay tax, even if it's just an online store.


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09 Nov 2009 - 11:2522230
Hi Jacobar, I see you;re using paypal. I personally (and this is no lie) have spent the last few weekd tryng to get my paypal accout re-activated. This was because I had made too much money selling things on ebay, and paypal reported me to the police fraud and money laundering team.

Srsly I wish I was joking. I have spent weeks proving I am not a business, that I have been selling second hand goods (which fall under different laws) and providing tax documents to prove such. I was a few steps away from having all of my assests frozen and the police digging up my entire banking history. (and as a mortgage owner I would rather my house was not repossessed over ebay transactions).

guess how much money I had made? Barely £1000 over the last 5 bloody years.

I give you (and anyone else reading) this advice so that you don't have to deal with the trouble I have. Go and arrange to see a small business adviser at your bank. All banks offer a free advice service. They will be able to give you all the information necessary! And on the plus side, they may be able to help you turn this into something very lucrative! If not they could save you a massive fine and possible jail time if you don't follow the rules. HRMC aren't forgiving people....


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There is always room for cake
09 Nov 2009 - 11:5722232
Quote GunstarVixen:
Hi Jacobar, I see you;re using paypal. I personally (and this is no lie) have spent the last few weekd tryng to get my paypal accout re-activated. This was because I had made too much money selling things on ebay, and paypal reported me to the police fraud and money laundering team.

Srsly I wish I was joking. I have spent weeks proving I am not a business, that I have been selling second hand goods (which fall under different laws) and providing tax documents to prove such. I was a few steps away from having all of my assests frozen and the police digging up my entire banking history. (and as a mortgage owner I would rather my house was not repossessed over ebay transactions).

guess how much money I had made? Barely £1000 over the last 5 bloody years.

I give you (and anyone else reading) this advice so that you don't have to deal with the trouble I have. Go and arrange to see a small business adviser at your bank. All banks offer a free advice service. They will be able to give you all the information necessary! And on the plus side, they may be able to help you turn this into something very lucrative! If not they could save you a massive fine and possible jail time if you don't follow the rules. HRMC aren't forgiving people....


Speaking of which, I'd also been asked to provide additional information to them because of anti money laundering regs. But that was in 2006 and they said it was because I received more than £4500 in total. The limit may have changed since then. And luckily after I gave them some basic info they didn't take the issue further. (I was actually hardly making any profit, just helping a huuuuge bunch of people buy stuff when I was in Japan. Most of the money was actual cost + postal prices, and I made maybe £50. Got a nice dinner for my troubles!)

Jake, I second going to a small business adviser. Or, does your college take part in the Young Enterprise scheme? If it does there may be someone you can go to for help, too.



Last edited by Pez (09 Nov 2009 - 12:13)
09 Nov 2009 - 12:5822235
Mmk.
I see, Looks like i'm in the shitter before i start xD
Thanks for all your help ^-^
I guess i'll just stop everything now =)
Better now than being masses in debt an trouble eh?



Last edited by Jacobar (09 Nov 2009 - 20:52)
09 Nov 2009 - 14:2922238
Quote Jacobar:
Mmk.
I see, Looks like i'm in the shitter before i start xD
I've had no orders at all =(

Well, that website was to make sure people were interested.
Just go to this one instead!
http://www.solgoo.com/index.php?refid=154
This is who i work for you know.
Thanks for all your help ^-^
I guess i'll just stop everything now =)
Better now than being masses in debt an trouble eh?


Well orders don't come that easily with any new business, and there are some problems too. I think you've been given a lot of useful information so if you want to make another start after being fully prepared, you'll have a much better chance.

Also, can I thank everyone who gave all the information on starting small business... I've been toying with the idea for years and god knows when I'll work up the guts to do it, but when I do I'm definitely coming back to this thread!


09 Nov 2009 - 14:5822240
as long as you start your buisness off by seeing a buisness advisor at a bank, you really can't go wrong. banks WANT you to do well, because you doing well = more money in a buisness account with them = more investment collaterol.

on the flip side, banks (and paypal) activley seek tax evaders, because it's less profit for them. the taxman doesn't need to do any work what-so-ever, they just wait for annoyed banks to report suspicious activity.


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09 Nov 2009 - 15:0222241
Quote Jacobar:
Mmk.
I see, Looks like i'm in the shitter before i start xD
I've had no orders at all =(

Well, that website was to make sure people were interested.
Just go to this one instead!
http://www.solgoo.com/index.php?refid=154
This is who i work for you know.
Thanks for all your help ^-^
I guess i'll just stop everything now =)
Better now than being masses in debt an trouble eh?


Well I do apologise for accusing of you of lying about your supplier. It appears Solgoo and Milanoo both order their cosplay from the same Chinese factory called "Cosplay Show" hence why your costumes were the same as theirs.


10 Nov 2009 - 02:1522284
Quote GunstarVixen:
Hi Jacobar, I see you;re using paypal. I personally (and this is no lie) have spent the last few weekd tryng to get my paypal accout re-activated. This was because I had made too much money selling things on ebay, and paypal reported me to the police fraud and money laundering team.

Srsly I wish I was joking. I have spent weeks proving I am not a business, that I have been selling second hand goods (which fall under different laws) and providing tax documents to prove such. I was a few steps away from having all of my assests frozen and the police digging up my entire banking history. (and as a mortgage owner I would rather my house was not repossessed over ebay transactions).

guess how much money I had made? Barely £1000 over the last 5 bloody years.

I give you (and anyone else reading) this advice so that you don't have to deal with the trouble I have. Go and arrange to see a small business adviser at your bank. All banks offer a free advice service. They will be able to give you all the information necessary! And on the plus side, they may be able to help you turn this into something very lucrative! If not they could save you a massive fine and possible jail time if you don't follow the rules. HRMC aren't forgiving people....


Yikes. This is why I'm getting small business advice with regurds to things like my chest binder commissions. Thankfully at the moment I'm not making enough on them to really cause any probing from paypal. I have got all my tax info sorted which I do recommend is worth getting sorted before starting up any small buiness. Especailly if the plan on using anything like paypal as a payment method.

Thanks everyone for the advice. It made some great food for thought.


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10 Nov 2009 - 11:2422292
One cannot escape death... And taxes.


10 Nov 2009 - 22:1022333
Hmm? I can't seem to get on. Probably just my computer though.


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10 Nov 2009 - 22:2822336
Quote SamD465:
Hmm? I can't seem to get on. Probably just my computer though.


Did you read the full thread? After a lot of business advice, he realised what he was doing was illegal and therefore closed down the online store.

Can I just thank the residents of Cosplay Island for their fantastic advice and impeccable behaviour! I love you all ^_^


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