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  • Advice needed Please

    I have a customer who comes back every 3 months or so with a large order of Flesh Plugs for streched earlobes. He usually spends about £350 - £400 in one order.
    When i send the plugs to him i include an invoice with my website name and my home address and number on it.
    Am i breaking the law by invoiceing him but not having a registered business?
    I dont know were i stand cos he spends about £1000 a year.

    I have to be carefull because i live in a rented house and part of the agreement is not to run a business from the premisis.

    Help please.
    Please pass the word.

    https://www.facebook.com/pages/Valewoodturner/135543009799667


    http://valewoodturner.blogspot.co.uk/

    " 200 years of family tradition continued in the only way I know how. "

  • #2
    Could you use, perhaps, your Mums address for instance, as an invoicing address and not use your address at all. If you stick to the letter of the law you know the answer. But that doesn't preclude you from having a "Hobby" does it?
    Carol
    God helps them that help themselves.

    Comment


    • #3
      you can trade from anywhere, as long as you pay the due taxes. If you trade from home which is not a business address then it is a hobby.

      Comment


      • #4
        Originally posted by urbtaf View Post
        you can trade from anywhere, as long as you pay the due taxes. If you trade from home which is not a business address then it is a hobby.
        Good to see you Urbtaf
        I started off with nothing and I've still got most if left.

        www.folksy.com/shops/fluffysstuff

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        • #5
          You are selling. It's a business. You should be registered.

          And on an emotionally blackmailing level, my taxes paid for the midwife that helped bring you into the world and the education that got you where you are today. My arthritis is really giving me gip today. Your taxes, if you were paying any, would buy some pills to ease my pain.

          You are not a politician or a banker.......do you not think you should play fair?
          AnnieAnna

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          • #6
            I'm new to all this 'business' stuff but I've just registered myself. How many self employed plumbers, and electricians are in rented accomodation... and how many of them were refused tenancy??? All of them would have registered with the inland rev and used their home address as their business address.

            On the self employed registration form from the HMRC it doesn't ask you if you're in rented or anything like that, it just asks for the address http://www.hmrc.gov.uk/leaflets/se1.pdf (it's only page 9&10 on this doc that you need to look at). You are also supposed to get 'permission' from your local council, but I think as long as you're not 'retailing' from your home.. ie a shop, then they are usually okay... but how many plumbers know they are supposed to do that... the inland rev is more important!

            As for your landlords... you're not exactly a plumber or electrician so.... Shhhhh! , and if you're landlords ever question you about it, just say it you didnt realise you were supposed to tell them... and use the plumber example as an excuse!
            Debbie

            http://www.vibrantsky.co.uk
            http://www.folksy.com/shops/FunkyTime

            Jazzy jewellery, funky clocks and gifts, each with a vibrant twist

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            • #7
              With the house - business thing, you do have my sympathy there.
              I have had houses where it is writ large in the deeds that you must NOT carry out any business in them.

              If it's your council making the rules they tend to look on office type homeworking and sewing (how sexist is that?) as not real work. What they are worried about is hundreds of customers coming to buy stuff off you everyday and clogging up the parking spaces. Then they'd be worried about you being a business.

              If it's a landord that has a problem it'll be beacuse his house iwill be insured for domestic use only. If your lathe sparked and the spark burned the house down I expect the landord's insurer would run a mile and you would be liable for the rebuilding of his house.

              If you own the house and only have domestic insurance you'll be in the same boat as the landlord.

              If you take out business insurance and your deeds say no buisness on the premises you'll be in trouble with someone.........

              Sorry, I think I might be making you feel miserable. Please don't be.

              We don't have to live this way. For instance, in Chile there is not a lot of taxing going on. No health and safety and insurance rules to speak of, no litigation. Life is free and easy. Until you have a car crash. No one's insured. They'll put you back together but you have to pay them back. Oh are you paralysed? No worries your family will look after you. No family? Sorry mate you are out on the street. It's begging or starving for you.

              I'm sticking with England.........it might be heavy handed but it does have safety nets.

              AnnieAnna

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              • #8
                I have sparked a few emotions here with my dilema.
                Im not going to try to rip off anyone and i will pay all due taxes.
                I just want to work and go about it in a proper manner.
                Please pass the word.

                https://www.facebook.com/pages/Valewoodturner/135543009799667


                http://valewoodturner.blogspot.co.uk/

                " 200 years of family tradition continued in the only way I know how. "

                Comment


                • #9
                  Oh don't worry. Arguing about this is fun. I've just done two miles of hand sewing and was getting bored.

                  Taxes = an emotional subject.
                  The idea of paying for the good of all is a good idea.
                  Parting with your hard earned cash is such (forget the sweet!) sorrow.
                  And rules/laws/legal clauses might seem like a good thing but they can be really annoying.

                  Your stuff is lovely Steve. May your dilemma be a momentary blip in your artistic carreer.
                  May we all live long and prosper.....and if we can't manage the last bit at least we will have enjoyed trying

                  AnnieAnna

                  Comment


                  • #10
                    Originally posted by V2Steve View Post
                    I have sparked a few emotions here with my dilema.
                    Im not going to try to rip off anyone and i will pay all due taxes.
                    I just want to work and go about it in a proper manner.
                    A great approach, as one (rich!) business person told me, never begrudge the tax man his cut - remind yourself what you got to keep and be thankful!

                    Sadly as AnnieAnna said, the issue over business in rented residential accomodation is problematic but "reasonable". Private landlords rarely buy property mortgage free and the restriction on use is often imposed by lenders and providers of buildings insurance.

                    Even as an owner occupier you may well find your domestic contents insurance is also invalidated by running a business from home, and any home worker should check their mortgage/insurance/tenancy terms and conditions before setting up a home business - you may be surprised to see a restriction on "working from home" too i.e. working for a company that permits you to carry all or part of your occupation at home.

                    Plumbers and Electricians to my certain knowledge do not ply their trade "at home".. they work at the customers premises - there is no obligation to have a business address for paperwork bills invoices and the like, so in that respect, sending an invoice with your home address would not be an issue - but the manufacture of goods almost certainly is.

                    My advice would be to see what the alternatives are - renting workspace, borrowing a garage off a relative etc.. and then consult your landlord direct.. it may be that they are using a "standard issue" tenancy agreement and there are no actual objections to you running a hobby type business.. though I would have some alternative options available before having that discussion!

                    Comment


                    • #11
                      I'm going to make a comment and give a bit of advice on the subject of 'working from home' - addresses et al. However, two things to bear in mind when reading, please!

                      1. I am not a lawyer. Don't blame me if I'm wrong!

                      2. I have a home office, however, as my business is IT, I don't really have any tools or materials that you'd notice. Just an extra computer or two and shedloads of shelving!

                      OK. Disclaimer - DONE!

                      Typically the main points behind "You cannot run a business from these premises" in a lease (be that property or ground lease) are that you cannot:

                      1. Undertake any activity which changes the "destination" of the premises, or impacts unfairly (in reality or in potentia) on other residents - if applicable.

                      This tends to mean that you can't run a shop out of your windows, traipse tradesmen in or out, or run heavy machinery 24/7 - literally common sense - YOU can WORK in your lounge, without it becoming business premises. If you trade solely out of them, it's a little different.

                      2. Premises which are used (almost) exclusively as business premises are subject to business council tax, electricity, water and gas rates.

                      You need to look into this bit and get proper advice, so you don't get clobbered later! I believe the situation is that if you "do some work from home" - your home isn't a place of work.

                      If you are unsure, register the "head office" address somewhere else - e.g. with your accountant.

                      Hope that helps? Reading back, I should have possibly had another coffee first...!
                      --Matt

                      Web Development
                      Beads, Charms & Findings - Jersey Craft Shop

                      Comment


                      • #12
                        With the insurance thing I just tell my insurers what I'm doing and I pay a bit more than I would if I were a domestic goddess and I'm covered.......
                        but I have good reason to worry as I'm a flame throwing acid queen (I do metal bashing jewellery).
                        I've done that in rented and bought houses.
                        AnnieAnna

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                        • #13
                          Sparky dad said
                          A great approach, as one (rich!) business person told me, never begrudge the tax man his cut - remind yourself what you got to keep and be thankful!
                          If I think like that will I become rich?
                          AnnieAnna

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                          • #14
                            Originally posted by AnnieAnna View Post
                            Sparky dad said


                            If I think like that will I become rich?
                            AnnieAnna
                            No, you need to do the donkey work too - but rich and happy with your lot is better than rich and bemoaning the 30% the treasury took rather than celbrating the 70% you keep!

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