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AIBU?

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Original poster

To not do a self assessment for my hobby?

91 replies

Pullyers · 08/07/2019 01:02

I have an expensive hobby that I put many hours into in my spare time. I get a few thousand a year from selling a few things but my all costs are significantly higher, it's a hobby I do for enjoyment not to make money. Do I need to do a self assessment? The thought of keeping every receipt and all the stress and hassle just sucks the joy out of what is simply a hobby. Can I just not do it? What happens if I don't do it? Fines... prison?!! Thanks in advance! Ps don't want to say what hobby is as quite niche.

OP posts:
CuriousaboutSamphire · 08/07/2019 08:24

9 “badges of trade” Good idea. They helped me when I started. The thought process is quite involved, more so than some hobbyists seem to think.

The upshot is that ONLY the OP can work through this. We can all only make a best guess and hoghlight the issues.... which we do seem to have done!

Curious2468 · 08/07/2019 09:02

If you handle less than £1000 a year you don’t have to declare but you sound well over the threshold! You should be filling in tax forms and also have some sort of insurance.

Original poster
Pullyers · 08/07/2019 10:03

Thanks so much everyone, am going to speak to HMRC. To answer the questions -

No I sell nothing I make
I sell only leftover / surplass / un useable parts second hand
I have no intention to make a profit, I can't

Thanks!

OP posts:
Original poster
Pullyers · 08/07/2019 10:48

After a long hold HMRC said that if I have over 2.5k coming in then I need to do a self assessment. I hopefully will be below this. They said if I am over that but make a loss then I can offset this against my salary and claim a tax refund. I won't be bothering with this. They were helpful which is good.

OP posts:
quizqueen · 08/07/2019 11:24

If you do find that you need to fill in a self assessment form for tax purposes, then why not turn your hobby into an actual money maker!

Winebottle · 08/07/2019 11:42

I wouldn't trust any decisive answers that HMRC give you on the phone. It depends on your individual circumstances. They have assumed you are trading.

If you are making a loss on a hobby type activity, it could interest enquiry teams.

Al2O3 · 08/07/2019 11:43

Mountain and molehill springs to mind.

Kazzyhoward · 08/07/2019 11:57

After a long hold HMRC said that if I have over 2.5k coming in then I need to do a self assessment. I hopefully will be below this. They said if I am over that but make a loss then I can offset this against my salary and claim a tax refund.

None of that is correct according to HMRC's webpage! The £2.5k relates to property and other income, not trading. You can't offset a loss from a "business" that isn't being carried on with a view to making a profit. So 0 out of 2!

CuriousaboutSamphire · 08/07/2019 12:32

After a long hold HMRC said that if I have over 2.5k coming in then I need to do a self assessment. I hopefully will be below this. They said if I am over that but make a loss then I can offset this against my salary and claim a tax refund. No!

As Kazzy said, that really is not right. That REALLY IS NOT RIGHT!

Hopefully OP has just chosen to be cryptic and the details we have make that wrong but her reality makes it OK... though I can't see how... I am not privy to her details!

Original poster
Pullyers · 08/07/2019 15:18

Well I have no idea what to do now. Will just fill out the damn self assessment then before April. Such a bloody waste of time.

OP posts:
Original poster
Pullyers · 08/07/2019 15:19

Also how can hmrc be so useless? They record these phone calls so if I go by what I've been told and it's wrong then they have the advice given recorded.....

OP posts:
ProteinshakesandAntonsAss · 08/07/2019 16:40

They are useless all the time.

I owe them money for tax credits. I cancelled mine and exhs tax credits joint claim and started a new single claim when I left. He realised his single claim was hardly anything. Called them and told them we with back together.

So they decided I owed them 2k. Despite me telling them we were split and having my own single claim. Despite them saying I couldnt possibly have had 2 claims at once
I did. Now, as a single parent I have to pay them half the debt back. Its fucking ridiculous. They are shit.

ProteinshakesandAntonsAss · 08/07/2019 16:41

Ph sorry I was talking to them about my tax credits, because I was self employed years ago and they sti had me down as self employed despite me closing it down and being employed for 5 years.

slithytove · 08/07/2019 16:43

It’s not a business!

Tallgreenbottle · 08/07/2019 16:44

If it is a business OP then yes. If your aim is to not make a profit and you never do, and you are selling on your own 2nd hand/left over posession then no.

slithytove · 09/07/2019 21:34

My hobby

Playing guitar

I buy guitar, strings, music, books

I sell on the music and books I no longer want - make some of the purchase price back

Not a business!

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