|Gabriel Whitehouse 1||31/05/2018 12:45:34|
|1 forum posts|
Hello everyone I've been making various things with many fabrics for a long time but decided I wanted to join a group to help me advance my skills - so here I am!
My question - I've started selling things I make online and it's starting to take off (most of it is on local buy/sell sites). I was wondering if the profits I make from doing this counts as taxable income? I was figuring out my finances a while ago and while I don't sell to make profits as anything extra goes straight into nicer fabrics, new equipment etc. I was looking at this salary calculator and noticed with all the money I make from selling bits and bobs I go over the personal allowance into taxable income amounts (as I am only just under the personal allowance amount anyway). Should I be worrying?
The site I used: https://www.income-tax.co.uk/
|Eileen Foster||02/06/2018 07:49:38|
566 forum posts
theoretically I think the answer is yes you need to tell them, if it is a business. But if its for 'pin money' then I think no.
why not ring them and ask. Take down the name of the person you speak to so if there is any 'conflict' you can tell them who told you what.
I hope you enjoy being on this site. I;ve been a member for over a year now. I love it and gained so much inspiration.
|Margaret S||02/06/2018 10:01:14|
3980 forum posts
|Hi Gabriel, |
Google - what tax can I claim from working at home?
For example you can claim for some of your home running costs. Unless you are very fortunate, I would have thought that after all your true costs are deducted, your profits would not be huge.
Good luck with your business.
|Carol B||11/06/2018 20:25:40|
3003 forum posts
Welcome to the forum.
Hope you managed to find the answer to your question, and hope your sales go really well.
|Winnie the B.O.L.B||14/06/2018 16:20:16|
3340 forum posts
Welcome to the Forum - we're a friendly bunch.
I'm not sure about exact figures but when I was making some things at home - for sale - and doing some soft furnishings sewing too - a good friend who was a senior tax inspector(!!) told me that, as Margaret S said, by the time I had claimed everything I was allowed to, I would probably show a LOSS on paper!!! Look into all of it - travelling expenses to buy supplies, petrol and running costs for your car, part running expenses for the house (heating, electricity etc), deterioration of your machine and all your sewing equipment, the need to have a second one as back up etc etc etc - that is only a very small beginning. I really don't think you have anything at all to worry about - just make sure you have every receipt under the sun - don't screw up anything and throw it in the bin. Eileen's advice about ringing the tax office and noting down who you speak to is probably very good.
Lots of luck and make sure oyu have fun too!
Please login to post a reply.
Want the latest issue of British Patchwork & Quilting? Use our magazine locator links to find your nearest stockist!
Got a patchwork or quilting problem? Looking for a phone number or email address to ask someone for help? Click here to find the right person