Help Required pleeeeease

[Daniella141]

Hi Guys and Gals,
I was wondering if any of you 'all knowing' crafters may be able to help me with this one......
I currently work on a part time basis (20hrs per week) earning roughly £120 per week. With this I do pay NI but dont think I do tax as it falls below the limit of 6000 or so per year before you pay tax.
I have just finished uni and set up my website and have just taken part in my first craft fair. As far as the tax man is concerned do I need to declare these extra earnings? As I am confused as normally if I wasn't working I understand I would need to declare msyelf as self employed and would have to pay my NI and sort out my tax myself. However I don't know where I stand as I am currently in employment.
Any help would be gratefully received as I do not want to be prosecuted!!!

[jencel]

Hi Daniella,
Yes, you do have to tell the tax people. And you'll have to provide accounts each year. Don't panic, it's probably easier than it sounds. Save all your receipts, as you'll need these to claim as expenses against your sales, and of course, a record of all sales.

You have to send in accounts each year, and tax is paid either once or twice each year, depending on how much it is. You'll be able to set any unused personal allowance against the tax.

The tax office do a leaflet about working from home, and I think they may do seminars for self employed people. They're very helpful, usually, if you contact them.

HTH

[Daniella141]

So even if I'm not classed as self employed but as employed I still have to declare all my earnings? I thought you had to do that if you declared yourself as self employment?
Sorry you'll have to bear with me as I'm just trying to get my head around all of this.....isn't it confusing?
Luckily I have been keeping all of my receipts for my beads and findings etc.

[Caroleecrafts]

I was working part-time up until early last year and also ran a business, consequently I had to fill out a tax form every year with both my employment figures from the annual P60 and my own books.

Even though you are working you still have to register as self-employed, if you are selling goods, even if you don't make much money anything earned is classed as taxable income, which is why savers have to pay tax at source on their interest payments.

Just to reiterate if you are earning funds from selling your own goods, you are self employed, the fact that you are employed is neither here nor there, this is in addition to your salary.

[Seahorse]

Yep you need to tell the IR.
I work part time too and I sell my jewellery.I let the office people at work sort out their side of stuff and anything to do with my jewellery I have to fill in a self assesment form and a self employment short form to tell the IR what money I made form my hobby.

[itsamistry]

Hi Daniella

I don't know where you are based but you can get free help from your local council office. The person you need to ask for is the Business customer relations manager. They run business projects for free to help new small businesses.

Hope that helps.

[Daniella141]

Thanks very much for clearing that up for me as I was getting confused with the 'being employed' or 'self employed' part of it.
Looks like I'll have to get in touch with the Inland Revenue because I don't want to get caught out before I even really get started. Lol:o