Selling Things

(10 Posts)
DeckTheHallsWithBoughsOfJolly Mon 17-Dec-12 16:16:25

Was, not wad, obviously.

DeckTheHallsWithBoughsOfJolly Mon 17-Dec-12 16:16:08

Thank you, talkinpeace, that wad rather useful!

TalkinPeace2 Mon 17-Dec-12 14:38:43

Hi there,
have a look at this page that I wrote for ebayers :
members.ebay.co.uk/ws/eBayISAPI.dll?ViewUserPage&userid=talkinpeace
it summarises a lot of the basics and has links to more information.
Feel free to print it out

DeckTheHallsWithBoughsOfJolly Sun 16-Dec-12 22:43:29

Excellent, thank you again smile

MrAnchovy Sun 16-Dec-12 22:40:39

Sorry, should have given you this link which confirms how to deal with a hobby business or similar income up to £2,500 without submitting a tax return.

DeckTheHallsWithBoughsOfJolly Sat 15-Dec-12 07:05:56

I will not be selling anything myself, as my friend already has a small business and will sell anything I make. I really won't be making enough to justify even one stall a year at a craft fair.

I'll speak to hmrc once I have some stock to sell, and before I start to actually sell it.

Thank you for your help. It will be a very small venture and is more because I want to make things than because I want to make money!

MrAnchovy Sat 15-Dec-12 00:50:48

Er, I don't agree with lots of that.

"Fristly, good luck with your venture." - Except for that bit of course :D

If you are only going to make £200 a year you are not setting up in business, this sort of thing is called a "hobby business", make sure HMRC understand that this is what you are doing.

You do need to notify HMRC about your additional income and will probably need to complete a tax return, adding this income in as "other income" in the main part of the return and the expenses as "allowable expenses" (boxes 16 and 17 on the paper return) rather than filling in a separate "Self Employment" section; add a description of what you are doing in the "other income" box.

There is no longer any requirement to notify within 3 months even if you are starting a business, the requirement is actually to notify immediately, although there is no penalty for much longer than 3 months.

Two pieces of paper, one for income and one for expenditure, with columns for date, description and amount will be fine, anything more is overkill.

You do not need a separate bank account.

If you want to accept credit card payments or trade on line PayPal is your best bet and costs nothing to set up.

You will not be able to reclaim any VAT you pay for anything no matter how much it costs.

DeckTheHallsWithBoughsOfJolly Fri 14-Dec-12 23:28:34

Wow, thank you so much for replying. That all seems sensible and easy enough. I reckon this might be possible smile

UKSky Fri 14-Dec-12 23:21:38

Fristly, good luck with your venture.

You need to call HMRC to tell them that you will be setting up a small business - you need to do this within 3 months of start up. They are very approachable and extremely helpful. You should then keep accounts (places like Staples do good fill in yourself books for this). Or you can do it on a spreadsheet. You just need a column for purchases and one for sales and the difference is your profit (hopefully). There are also several good free computerised accounts packages but you will need a bit of knowledge to do this and they can be quite time consuming.

You do not need to "set up" a business with anyone. You do not need to contact companies house. You can trade as something like - DeckTheHalls T/A Arty Crafty Things. You will then be a sole trader.

If you plan to accept payment by credit/debit cards, there are other things you need to do (if you want to do this I can let you have some info).

Keep ALL receipts relating to the business and once a year you will have to fill in a self assessment form (if you don't have a receipt you can't claim it as a purchase which will increase your taxable income). You can register to do this online and it is simple to fill in and has lots of online help too. For self assessment any tax due is payable in arrears. It's probably best to have an account that you can put money into for future possible tax payments.

You will not need to register for VAT as you will be under the threshold. You will not be able to reclaim any VAT you pay (unless it is a significant purchase. It was £2k but may have changed). Also, you cannot charge VAT on your sales. It will be just a total.

Also, keep a record book of all sales. Either in a notebook or a duplicate book if you wish to give your customers a receipt.

Open a separate account for all business finances as this will help with your tax forms.

I run my own business and do all of the administration, including the accounts. If you've got any specific questions, do feel free to drop me a PM and I'll try to help.

If this is your only income, you should probably talk to the national insurance people as well to keep up your contributions.

Don't be daunted by all of this. It is all quite simple. My best advice is to keep ontop of the paperwork. Weekly or monthly, otherwise you may forget stuff/get bogged down with it.

DeckTheHallsWithBoughsOfJolly Fri 14-Dec-12 13:54:39

If I want to sell things I make... How do I do it? In terms of tax/business registration etc.

I would be making profit of £200 per year max. My friend would sell the things I make on her website/at craft fairs.

Would I need to register as a business? How would I deal with tax? I work and earn £21k pa so would be eligible for tax I assume? I checked on the hmrc website but struggled to find any useful information.

This would be more like using my hobby to generate a little pocket money rather than a full blown business venture.

Please can anyone help!

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