Starting a UK BTC shop

[Anonymailer]

Hi all,

I want to start a UK-based webshop, buying products in bulk (for fiat cash, at least initially), splitting them up and selling them online exclusively for BTC.

What legal hurdles do I need to take in to consideration? I'm sure it's not just as easy as building my site and putting products up for sale. I'm talking taxes and regulations here. Any help would be much appreciated!

[infested999]

Is there still a discount when you buy wholesale if your buying less than 10,000 of something? Or am I looking in the wrong place.

[Anonymailer]

Is there still a discount when you buy wholesale if your buying less than 10,000 of something? Or am I looking in the wrong place.

Yes, there are still some independent retailers out there!

[froggy]

For tax purposes you'll need to decide whether you want to start out as a Sole Trader or a Limited Company. Take a search in the web for a "Sole Trader vs Limited Company" for the advantages of each.

HM Revenues and Customs has some useful general info at http://www.hmrc.gov.uk/businesses/tmastarting-up-in-business.shtml

[Anonymailer]

For tax purposes you'll need to decide whether you want to start out as a Sole Trader or a Limited Company. Take a search in the web for a "Sole Trader vs Limited Company" for the advantages of each.

HM Revenues and Customs has some useful general info at http://www.hmrc.gov.uk/businesses/tmastarting-up-in-business.shtml

Thanks for the info! Does anyone know whether you need to pay VAT on products exchanged for BTC and if so how you calculate that?

[ribuck]

Does anyone know whether you need to pay VAT on products exchanged for BTC and if so how you calculate that?

You don't need to charge VAT until your turnover is above some large amount, something above £50000 per year. By the time you reach that level, someone will have worked out how VAT applied to Bitcoin businesses.

I suggest you go to the newsagent and get the magazines for market traders. They are full of ads for suppliers who will give good discounts on reasonably small orders.

[Anonymailer]

Does anyone know whether you need to pay VAT on products exchanged for BTC and if so how you calculate that?

You don't need to charge VAT until your turnover is above some large amount, something above £50000 per year. By the time you reach that level, someone will have worked out how VAT applied to Bitcoin businesses.

I suggest you go to the newsagent and get the magazines for market traders. They are full of ads for suppliers who will give good discounts on reasonably small orders.

Excellent! That makes things a bunch easier! So as I understand it, I can operate as a Sole Trader usually would, keeping track of sterling costs of products and profits from sales of bitcoin?

Keeping that in mind, I'm very happy to announce

BitBacco.co.uk

BitCoin's first tobacco shop! England only though for now, sorry guys

Now I just need to find a trusting first customer to give the rest the all clear.. Do people commonly use escrow services to get off the ground?

[hoki]

BitBacco, you could buy cigarettes in bulk from Cigs.eu and re-sell them!