side hustle and tax (UK)

[kerry19834]

This query is more theoretical at the moment, but I have created some print to order books, I have had them listed on amazon for a couple of months and unbelievably I actually made a couple of sales.

Question when it comes to tax, I know there is a £1000 trading allowance for side hustle in the UK. I have a main job, but also earn a bit from walking a dog etc.

I don’t think the book sales will go far but in case they do. When it means trading allowance, is this the profit I make or the total value of the books sold.

Obviously I make a tiny amount on the book sales only a couple of pounds per book. But in terms of total sales each is 14.99.

So in my trading allowance do I count the 14.99 or the 2 (keeping fingers simple).

Obviously with uploading a digital copy and print to order I don;t have costs until the book is sold.

Count the £14.99
Its a trading allowance on turnover

If you exceed £1000 on the total of everything then you would need to register for self assessment, the questions linked below would tell you if you need to register
Assuming you do then it does not mean you have to pay tax, you would subsequently be able to do a return taking into account related expenses before calculating the profit

www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms

Work out how much your turnover is (not profits) is it over £1000? If so you need to put it on your tax return. When you do put it on your tax return you have two options either deduct your actual allowable expenses or deduct £1000 obviously you choose whichever is higher. If you deduct your actual allowable expenses make sure you have as much evidence of these as possible eg receipts etc as HMRC can ask for them (doesn't happen that often).

thanks, is that the case even though amazon technically says they pay me a royalty through kdp for my book

I disagree. The £14.99 is Amazon’s turnover. The OP will only ever receive a commission or royalty, and so that’s her turnover.

That will depend on the technicality as to the accounting.
If you are only paid the net royalty then that lower amount is the figure for your calculations

If Amazon are turning over £14.99 and paying you £2 then your pre-expense income is £2
If you are turning over £14.99 and then pay Amazon £12.99 then your pre-expense income is £14.99

As you have now described it, I would say the lower

For my eBay sales I report the income figure with eBay fees deducted*, as that is the amount paid to me

*though sales fees are charged to the buyer now, I do have fees such as promotional advertising fees

In my case it’s a moot point because I’m over the trading allowance, so it’s a matter of whether I show a net figure or a gross total with a deduction in another box. Previously I would go by trading allowance and didn’t have to submit a return, then when I had the odd big sale in a year would slow things down to keep low
The ‘benefit’ of accounting rather than trading allowance is the types of expenses I can deduct