self employed?

[Littleali]

Hope this in the right place...

Basically I make handmade cards and since giving them out for birthdays and such like, have had quite a few people say I should sell them

For small things like these, ebay is a rip off, by the time they've took my listing fee, then final selling fee, i aint really left with much profit

Anyhoo, I've come across like an online craft market, its kinda like ebay (you have your own shop etc) but its only £25 for a whole year, which works out better than ebay, I can tell ya!

Quite a few people on their have mentioned that they have had to register themselves as self employed...is this really necessary?

Each card I make, costs aprx 50p to make....I'm planning on selling most at about £1.50 -£3.00... Its more for enjoyment than profit...what i make will probably go on more stuff to make them with!

Will i really be making that much that I should register as self employed?

Answers on a postcard.........

Thanks in advance

x

[Whowhere]

Maybe not self-employed but i'd consider setting up a seperate bank account and putting aside some of the profit for the taxman, who will inevtiably catch up with you, probably 10 years later when you owe £15,000 or something lol.

[Littleali]

okies...ta

there wont be much profit tho...thats my point x

[ShyBoy]

I don't think you need to actually.

Just do it for fun and think you're not planning to make profit, and if it is successful things will start to take off and it could develop.

[Whowhere]

okies...ta

there wont be much profit tho...thats my point x

The inland revenue won't care about that, they'll chase you anyway.

[Littleali]

eeek

mixed messages

hopefuly kermit will know a bit more, think he's pretty clued up on suff like this...failing that i guess i'll have to ring the people in charge

ty for your input guys x

[girl with sharp teeth]

The difference between a hobby that brings a bit in on the side and a self employed business can be absolutely tiny and quite often you can argue the toss. Because of this it pays to be careful.

The law requires any person who is chargeable to income tax or capital gains tax for any year of assessment to tell HMRC within six months of the end of the year, even if they do not receive a tax return. Newly unincorporated businesses must register with HMRC within three months of starting to trade.

Even if you make a loss it is best to cover yourself by registering, to save awkwardness and hassle later. HMRC can turn extremely nasty and you do not want to get on the wrong side of them. Registering with them isn't going to create a tax liability on your part by itself so you haven't got anything to lose by doing so.

These leaflets (http://www.hmrc.gov.uk/businesses/tmastarting-up-in-business.shtml) might be useful for you :)

[Littleali]

thanks gwst

its just at the min i'm only part time, and my mum is only on widow's benefit, so i dont really wanna get into something if its gonna end up costing me more than its worth

x

[Littleali]

just been looking, it says when i start to keep bank statements.....the thing is...i'd only be accepting paypal, so how would i go about that?

its so confusing :(

[Whowhere]

just been looking, it says when i start to keep bank statements.....the thing is...i'd only be accepting paypal, so how would i go about that?

its so confusing :(

Paypal keeps records of all your transactions, and your bankstatements will show up that you've recieved a payment from Paypal San Jose.

[Joolyknockers]

You do need to register, even if the profit is minimal. You may not have any liability if this is your only income but you would still need to notify HMRC.

[Littleali]

seems like such a joke to have to declare summat so small, it really IS minimal

i bet half the people who sell on ebay dont declare it!

i'll get a form anyhoo, better to be safe than sorry

where do u get em from?

ty for the replies

x