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Talk to me about selling on Etsy, Depop etc

4 replies

oldbagface · 13/07/2020 18:56

DD wants to start making a certain item and selling them on. Is their anything we need to know. Does she have to pay tax? What else is there that needs to be done please.

OP posts:
chunkyrun · 13/07/2020 22:25

Hello anyone can sell on depop and Etsy. Are you registering as a business or using a personal account? You'll need PayPal x

oldbagface · 14/07/2020 12:28

Thanks @chunkyrun. I genuinely don't know. She just says she just wants to make this item and sell it. I don't understand the tax implications etc. Is there any? I'm very confused. She is over 18 if that helps

OP posts:
KnobJockey · 14/07/2020 12:32

Anyone over 18 can make £1000 a year I'm self employment before it needs to be declared to HMRC

delilahbucket · 16/07/2020 11:00

She can receive £1000 each tax year without registering as self employed. This is turnover, not profit, so she cannot deduct expenses.
She needs to learn to keep records of her sales and expenditure, and if she goes over the allowance, she will register with HMRC as self employed and then complete a tax return each year. As to whether she pays tax depends on how much she earns and whether she has another job. She will have the same tax allowance as everyone else.
She needs to learn about the consumer contract regulations and sale of goods act. She must comply with these laws, including displaying her full name, trading address, contact phone number and email to all customers prior to them purchasing, and having a legal returns policy.
Then there's insurance. She may not need stock insurance if she doesn't have a lot, but she will need product liability, particularly if she is making items herself. If she is selling to the USA and Canada, this insurance costs considerably more as they like to sue for random things.
If she is working from home this must be declared to your/her home insurer and landlord/mortgage company.
Be mindful that personal bank accounts usually exclude business use. While it isn't a legal requirement to have a business account as a sole trader, the bank will be within their rights to close a personal account if they believe it is being used for business purposes, if their terms and conditions say it isn't allowed.

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