A couple of questions for Dawanda/etsy sellers

[hophophippidtyhop]

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,andwon'tgetintotroublewiththetaxman--

[SewCrafty]

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.

Good Luck.

[hophophippidtyhop]

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!

[Sn0wGoose]

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 :o).

[hophophippidtyhop]

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.