Do I set up a business HELP!!

[new2allthis]

Hi

I have had a look round and sorry if i am asking a question that has already been answered else where already... but here goes.

I love making jewelery, clothes, scrapbooks, cards and other various bits I have considered selling these on ebay but the fees seem high when i am selling items for £1-2 at most i only want to cover my costs i dont want to make a profit particularly i just enjoy all things crafty and i am running out of space so i have got to start selling them somewhere.

So i am thinking of putting a small website together that i can sell my bits on, do I have to set up a company accounts and tax etc for this!!

Thank you in advance guys!:confused:

[Chris W]

Hi,
This is advice for setting up a business rather than just selling a few items on ebay.
You would need to inform the taxman that you are setting up a company to trade online. You open a bank account in the name of youself trading as (company name), then all your transactions, outgoings and incomings normally pass through this account. You can obtain a company credit card and cheque book for purchases and you are more or less up and running. I would suggest you appoint an accountant as you will be saved a lot of headaches. You don't need to register for VAT initially and you don't need to be a limited company which is more expensive to set up.

[beadsbydesign]

If you sell goods then you need to inform the inland revenue. It's not as frightening as it sounds, it's a simple phone call and then your registered. You have to do this within three months of start up.
You'll have to fill out a tax return. Again it's not as frightening as it sounds!!
You are entitled to a personal allowance of 5K ish (can't remember the exact figures.

Etsy is better than ebay for hand made goods.

You should however think about charging realistic prices for what you make. If it is of a standard to be sold then it should cost a realistic fee. People need to see that handmade is special. There are too many people selling their stuff at rediculously low prices, it gives the message out that handmade = cheap. when infact it means artisically created with unique design features and skills learnt and perfected over time.

Don't expect to get rich....... I'm sure you've heard of starving artists!

[beadsbydesign]

Hi,
This is advice for setting up a business rather than just selling a few items on ebay.

Any one selling goods must register.



You open a bank account in the name of youself trading as (company name), then all your transactions, outgoings and incomings normally pass through this account.
This is not necessarry, but you must be able to prove all ingoings and outgoings.
for a small company you can use a personal bank account. it is easier if everything is together.





I would suggest you appoint an accountant as you will be saved a lot of headaches.


Again this is not necessary as long as you keep everything together and accurate figures.
the inland revenue run free courses on how to keep your books and fill in tax returns and they are also very helpful on the phone.

[Ian Beckerton]

This is an interesting discussion. On one hand we have the professional approach of a full time, full employment business and on the other an individual just wanting to clear a bit of space and earn a bit of ‘pin’ money at the same time.

I have no problem with either. ChrisW is quite right in what she is saying, if you want to be in business then you have to be professional about your approach to it and looking at her web site you can see that she is.

On the other hand there is no harm in converting your talent and enjoyment in what you make into a little extra money; it helps fund what you want to do. If whatever you make is very saleable then perhaps it’s worthwhile considering moving up with a more professional approach to what you do.

This is basically what I did. I started taking packshots for a friend but found out that what I was providing was in a different league to what you would generally see, so I was encouraged expand my horizons and I now work for some of the biggest names in retail.

The principle should be that its fun, this doesn’t matter whether you are professional, semi professional or amateur. If its fun and you get an enjoyment out of what you do, then life is good and it’s even better if you can make money out of it as well. To make a living out of what you do means that you do have to be focused on what and how you do it and that is where the professionalism comes in.

Regards,
I..

[Chris W]

I agree that business should be all about having fun. I was merely giving advice and not laying the law down. I have had to support myself and four children through crafting, I have no other means of income, my fibromyalgia makes it hard for me to be in full-time employment and I needed to get my approach to business correct from the start. As Ian says there are distinctions between approaches, maybe one day I will be rich enough to be able to do it as a hobby.

[ShinySilver]

maybe one day I will be rich enough to be able to do it as a hobby.

I like that!

Fascinating thread. I think it might be a fair point, the distinction between selling a few things and setting up a business but am I right in thinking 'officialdom' (the tax man particulary) don't see that distinction?

[charlotte]

If you look around on ebay already some people sell on ridicules prices !
By selling cheap you may cover your costs but please think about other sellers that they need to make a profit otherwise on how they live?

Cheap sellers ruin the market value.

[Ifor-Jones]

I like that!

Fascinating thread. I think it might be a fair point, the distinction between selling a few things and setting up a business but am I right in thinking 'officialdom' (the tax man particulary) don't see that distinction?

I think you are right "officialdom" don't care whether it is our only source of income or pin money - they want to know that we are earning it, whether or not is is taxable is immaterial, it has to be declared and then in theory those who pay tax are the lucky ones because they are earning enough after deducting expenditure to get beyond the tax free allowance threshold!!!!!!!

[new2allthis]

If you look around on ebay already some people sell on ridicules prices !
By selling cheap you may cover your costs but please think about other sellers that they need to make a profit otherwise on how they live?

Cheap sellers ruin the market value.

This is a very good point I never really though of it like that, as i just do my crafting as a passion, i suppose i completely forgot i would be undercutting those who craft to make a living. sorry guys!!

[craftyslb]

Hi everyone

I'm also new to crafting, I make jewellery, I started selling to family, friends, anyone who asked, and just venturing out into craft fairs.
I work part time, plus jewellery making. Any advice would be welcome from anyone, but am I correct in assuming that you need to still register with inland revenue etc, if doing a bit of both, sorry if a daft question, but loads to remember, and a bit of a minefield starting out!
Is there anything else that need to do, as don't want to get on the wrng side of the taxman!

[Ifor-Jones]

Basically if you are taking money the tax man needs to know. You can register as self-employed for your craft work at the same time as working part time. There are quite a few threads about this sort of info recently.

[Art n Crafts]

Some areas offer small busienss centres that give business advice from a business plan to accounting and assist you to get registered and on your first sale you get £1000 to invest in your company (not saying its everywhere) but it is worth finding out from your local council or chamber of commerce to see if this is available in your area ;)

[urbtaf]

Sorry to sound a bit of a git, but anyone thinking of going into business and then the first concern is that they dont want to hurt anothers business has not got the right attitude. I work with others in the same line as me, and we dont hurt each other to our mutual profit. But every £1 that another trader takes is a £1 that I have missed out on. There is a balance between aggresion and common sence and decency, but without at least a bit of aggresion you will be walked all over. there are a lot of unpleasent people out there!
The basic needs of opening a business is to make a profit. do that before you open accounts ,tell the taxman (you have 3 months to do it) just keep a diary of all your income and outgoings, and if you make money you can transfer it all to a proper book keeping system later,

[handcrafted]

So if i actually get around to putting items on my etsy shop i need to inform the tax man within a couple of months? Even if i sell 2 things? And il still need to fill out tax stuff.

[jezzabell]

If you look around on ebay already some people sell on ridicules prices !
By selling cheap you may cover your costs but please think about other sellers that they need to make a profit otherwise on how they live?

Cheap sellers ruin the market value.

I just want to add that charlotte is right and I think no matter if you selling things as a small or bigger business or just things you made for fun you still need to think at least how much did materials cost, selling fees and time spent making it because I don`t think you want to give anything for free even it was pleasure to make...

[kerching]

I am under the impression that the higher percentage of members are operating in a semi professional/professional capacity in which making money from their selling products is paramount.Coupled with the fact they enjoy what they do.
I appreciate that others may make items for pure pleasure in which profit is not important.But selling their items for peanuts just under mines the budding professional who is trying to make a go of it and looking for that lucky break.
Does anyone know if buyers from major retail chains look at this website, searching for new ideas and original products from serious individuals.

[Nicole]

:pc: I HAVE FIBROMYALGIA as well i sell jewarly and cards i have looked into this and you Don't have to Register as a business :p as it will not be ongoing as you have fibromyalgia and in order for you to set up a business you have to earn over 10,000 a year!! :pc: