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When does a business become a business?

4 replies

100daysandBeyond · 11/01/2022 07:02

I took business studies, hated it and failed at GCSE level.

I have a quick question.

If you made something out of the love for it or did something with a skill and a couple of friends wanted to be part of it, at what point does something go from a hobby to a business?

Is it when you don't just charge your friends for the items they use but you charge more on top and make a profit?

Is it when you make X amount?

If you had 5 people and made a profit, but it was a one off and never did it again - is that a business?

If your 2 friends came to you twice a year and you made a small profit (say, £100) is that a business?

As you can tell, I'm frigging clueless, and I was just pondering these facts.

OP posts:
AlistairCamel · 11/01/2022 07:23

if you are making something or providing a service for payment then it’s a business. Whether or not you are making a profit depends on your pricing structure. If you aren’t making a profit then reconsider your pricing structure.

100daysandBeyond · 11/01/2022 07:25

Thank you.
My issue is, I absolutely don't want it to be a business, but something my friends and I can benefit from.

I don't want to commit fraud.

OP posts:
QuiltedHippo · 11/01/2022 07:28

www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

You can make £1000 before you need to worry

100daysandBeyond · 11/01/2022 07:30

Oh that's loads!

Great! Thanks so much for your help.

OP posts:
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