Paying tax on selling my jewellery

[Songbird]

I've just started this convo in money matters, but thought I'd put it here too, as you fellow crafty lot may have come across this yourselves.

I?ve been making jewellery for years for friends and family, and earlier this year managed to persuade a local gift-shop owner to stock some items. So far I?ve probably taken about £150 (not all profit by any stretch of the imagination!), but a couple of people have started getting me worried about tax. I currently work 4 days a week and feel I?m paying enough tax thank you very much. What should I do? Do I have to go through the rigmorole (sp?) of setting up a business etc?

[Whizzz]

Hi - You need to tell the tax office & register as a business. They will want details of what you've earned from jewellery each year and will tax any profit made. I think they do a leaflet about working from home. I think you can register online via the website here

[JossSticktheSnowman]

Once registered as a business:

If you earn under about £4000 (profit) per year they will not charge you. You can set any stuff you use / buy against this amount.

If you continue to earn under £4000 per year it will all add up as profit / loss and until you do make a profit and the previous years (and years) of earnings do add up to £4000 profit then you won't pay any tax.

Register as self employed - the form is dead simple every year and so far i've not done too badly but hardly paid any tax so don't worry too much about this.

In fact - the year i have to pay tax is will be the year i know i'm doing really well.

God! That didn't make sense at all did it???