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After some advice... I want to start a very small business - only working a few weekends a year - is it legal?

(4 Posts)
BabyDubsEverywhere Thu 25-Jul-13 15:22:09

Basically that grin

My DH is a bit of a classic car enthusiast, we go to a lot of car shows through the summer and I would like to start trading at these events. Id like to sell novelty items and novelty baked goods - sounds naff I know, its more for fun, and I know the market there - it would sell well I am sure.

But it will literally only be for the weekend shows through the summer, Is it possible to set a business up for this, or can I just do it without setting up? It seems like a lot of administration for a business when really I would just be a one man band market stall 5 times a year...

Can anyone help? TIA

mrscumberbatch Thu 25-Jul-13 16:08:52

I'm not sure if it's really a business per se as if it's only for 5 times a year and you're not going to see a big profit from it you can get away with doing it as a hobbyist.

If you make a small profit as a by product of a hobby then it's not taxable.... but say you starting punting your wares on the internet etc- then it's a commercial interest and you start paying tax.

If you buy 'novelty items' wholesale and sell them on it might put you into the commercial realm though.....

fifi669 Thu 25-Jul-13 21:26:10

I disagree. By law you have to declare to HMRC all income. You should fill out the self employment pages of a tax return. You can go online and fill in a SA1 to get your unique taxpayer reference (UTR) and go from there. It's not difficult, you can deduct expenses such as materials, mileage, stationary etc from your takings. In fact if this comes to a loss you can offset it against your general income and claim a tax refund in many circumstances.

That's the accountant answer.

Don't know if I'd bother though smile

NEScribe Mon 29-Jul-13 20:37:32

As Fifi says, you are supposed to inform HRMC but you only need submit three- line accounts if you have a low turnover. You can do that easily - what you sold- minus your costs which can include travel to shows, table fees etc - leaving your actual profit to be taxed ( if you earn more than your personl annual free tax limit).
You are supposed to pay self- employed NIC but don't think it would be payable in the weeks you don't work. Lots of helpsheets on HMRC website for guidance - and info on completing your SA return.

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