A couple of questions for Dawanda/etsy sellers(5 Posts)
Hoping to start up a Dawanda shop sometime soon, but I have couple of questions for anyone who uses it as a business. Did you set up a business paypal account or use a personal one?
Also I need somewhere to keep the money seperate from my personal account, do you use a business acc or just a seperate personal one? If so, do you have any recommendations?
Basically I'm starting off small, testing out the water, hoping that if I'm lucky in a few years it might build into a good sideline, but I want to start off with the right accounts etc, so that if it does take off, I'm on the right footing to build it into something more,
I've got a Folksy shop. I started off just using my usual joint bank account, but have since separated them. If you want to do all the money thing separate I suggest you phone your current bank and ask them for a separate sole account (don't mention business or I think they'll charge fees, etc) should be fine for just setting up. Then you can set up a separate paypal account and email to link it to (just gmail or whatever).
Also inform the taxman that you're self-employed and then you'll need to fill in a self assessment each year, even if you make a loss or peanuts, it's a fallacy that you don't need to inform them unless you make over £xK. You can then choose not to pay NI premiums for a while. I went on a free course by them all about what I do and don't need to do.
Thanks for that. Yes, I thought just a separate single account would be ok, I just want to keep it separate so I get an accurate look at the money side. I earn just under the tax threshold on my part time job, so will probably be liable for tax even if i only make £100 in a year! I'll look into that course thing, that would be good. Just trying to slowly build up something I can do at home once both dd's are at school to supplement my job. I've got 3 years to try and get somewhere with it!
Yes, do inform the tax man. You don't need to pay NI contributions for your business until you turn over 5k or employ other people iirc.
Keep a profit/loss spreadsheet and bear in mind that you can deduct any costs (materials, etsy fees, sewing machine servicing costs, web hosting fees - anything like that) from your profits, and you only pay tax on the balance (I think! It's my first year ).
Good to know about the Ni only after 5k, sn0wgoose. Going to go on the course sewcrafty mentioned and I see they do others for starting a business. Going to take my time getting all the paperwork stuff straight in my head, so I don't panic about it! I know that fifty million other people are doing it (or thereabouts) , and I might not make much money, but I feel a need to try.
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