Ads

Collapse

Announcement

Collapse
No announcement yet.

No idea where to start

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • No idea where to start

    Hiya - I'm new to this site and it looks great. I have been half planning - half dreaming - about setting up a small on line business via Etsy to share some of the craft ideas that I'm working on. I work full time, so it's really a chance to test the waters and see if anyone likes what I do. If it seems like I could make a business out of it, then I might take more of a plunge.

    The thing is though, I have no idea where to start - do I need to declare myself to the tax man even if I'm only selling a few things a year? Do I need to register myself as a business anywhere? Sorry to be so clueless but I figured that it's best to ask the experts who have been there and done it rather than just read a text book!

    Thanks so much!

  • #2
    Hi there Dreamycrafter2,
    Welcome aboard, to be honest I dont think you need to register your business or register for tax unless you make over a certain amount a month or year, I cant remember the exact amount since it depends on what country you live in. Where I live its only once you make over 800 Euros a month do you have to delcare it, so you have free room to just sell as a hobby crafter until things get serious! =)
    A whole world of crafts, cardmaking and scrapbooking. Welcome to Craft World!




    (NOTE: Designers currently wanted!)

    Comment


    • #3
      Originally posted by CraftWorld View Post
      to be honest I dont think you need to register your business or register for tax unless you make over a certain amount a month or year, I cant remember the exact amount since it depends on what country you live in.
      Unfortunately that is not true. You need to register with the Inland Revenue as soon as you start selling even if it's only a few items a month otherwise you risk getting a fine. I believe there is a small grace period, it used to be 3 months but I have a feeling (don't quote me on this) it's now 1 month. It is really straight forward to register and the good news is if you end up making a loss which lots of people do in their first few years due to set up costs you'll actually get money FROM the tax man as it'll be offset against your full time employed earnings.
      Visit Natty Netty for a huge selection of Iris Folding supplies

      Comment


      • #4
        You must register with the taxman if you sell for a profit

        Having been through the process in the past 3 months, I can confirm that as long as you sell your items for a profit, you must register as self employed. So, if you sell your crafts for exactly the amount of money you put in, then you do not need to register.
        However if you sell your crafts for more than it cost you to make then you need to register with the taxman. Even if you work on it one hour a month, even if you sell one item every month. As long as you work to sell stuff on, you have to register (I gave quite a few phone calls to the tax office to get different opinions to see whether I was doing the right thing!)

        The HMRC website has a lot of information on self-employment and self-assessment (although I have not reached that step and still dreading it a bit!)
        You need to register as self-employed by filling a form called CWF1, then if you expect your earnings from self-employment alone to be below £5075 for the tax year (this might have changed, this figure was for 2010-2011) you need to register for National Insurance exemption by filling form CF10.
        You can type the names of the forms directly in the search bar of the HMRC website. There are lots of details on the forms themselves.
        They will then send you a unique tax reference and when it's time a reminder to fill in your self assessment.
        I believe (and hope) you shouldn't be taxed if you have not made a profit or earned above a certain amount.

        Last thing, you still do have 3 months from your first sale to declare your business. I did it about 4 days before the 3 months deadline (as it took me a while to decide whether or not I was taking the plunge) and I was alright.

        Hope this helps, and it really isn't as bad as it sounds, as I found out.
        Best of luck with your budding business!
        Milliemishmash
        www.milliemishmash.com
        www.folksy.com/shops/milliemishmash

        Comment


        • #5
          Originally posted by milliemishmash View Post
          The HMRC website has a lot of information on self-employment and self-assessment (although I have not reached that step and still dreading it a bit!)
          It really isn't that bad, as long as you keep a record of what you spend and what you sell over the year you'll find it a doddle. Well remembered about the NI Class 2 exemption form - I recall one member on here not completing it and then getting hit for a bill a few months down the road.
          Visit Natty Netty for a huge selection of Iris Folding supplies

          Comment


          • #6
            Hi Dreamycrafter2

            Assuming you're based in the UK, HMRC also run some workshops that you can attend (free) to find out about how to keep the various records, and they will go through everything with you. It's well worth giving them a ring to book (details should be on their website).

            Also, Business Link may still be carrying out workshops in your area about planning and setting up a business. You may find these very useful prior to making any radical decision to take the plunge. In this area, Business Link is stopping workshops from about September/October time, so you could check the position in your area.

            Good luck, and there is certainly lots of lively discussion on this forum about all aspects of crafting, including the business aspects.
            Annie

            Comment


            • #7
              I started my business whilst I was at uni, but seeing as I also worked part-time I signed up as self-employed too.....I wish they would teach you this stuff at school i.e. Tax Returns etc - nightmare when you haven't done it all before!
              Just make sure you jot down everything that goes out and everything that comes in, and you'll be fine! At least I have so far....
              :: googlie-eye Designs :: Handmade gifts & accessories from recycled materials, giving new life to old discarded things!

              g00glie-eye's Website
              g00glie-eye's Shop
              g00glie-eye on Facebook

              Comment


              • #8
                Originally posted by milliemishmash View Post
                Having been through the process in the past 3 months, I can confirm that as long as you sell your items for a profit, you must register as self employed. So, if you sell your crafts for exactly the amount of money you put in, then you do not need to register.
                However if you sell your crafts for more than it cost you to make then you need to register with the taxman. Even if you work on it one hour a month, even if you sell one item every month. As long as you work to sell stuff on, you have to register (I gave quite a few phone calls to the tax office to get different opinions to see whether I was doing the right thing!)

                The HMRC website has a lot of information on self-employment and self-assessment (although I have not reached that step and still dreading it a bit!)
                You need to register as self-employed by filling a form called CWF1, then if you expect your earnings from self-employment alone to be below £5075 for the tax year (this might have changed, this figure was for 2010-2011) you need to register for National Insurance exemption by filling form CF10.
                You can type the names of the forms directly in the search bar of the HMRC website. There are lots of details on the forms themselves.
                They will then send you a unique tax reference and when it's time a reminder to fill in your self assessment.
                I believe (and hope) you shouldn't be taxed if you have not made a profit or earned above a certain amount.

                Last thing, you still do have 3 months from your first sale to declare your business. I did it about 4 days before the 3 months deadline (as it took me a while to decide whether or not I was taking the plunge) and I was alright.

                Hope this helps, and it really isn't as bad as it sounds, as I found out.
                Best of luck with your budding business!
                This comment has helped me so much. I've read so many leaflets with information, but none of them tell me where to register! Thank you!!!

                Comment


                • #9
                  Some started with a scratch where they didn't know how to attract the customers. Referrals, flyers, and media -you can use them to tell your community that you are selling a great product. How? Join a trade show. There might be some group of media that are documenting some business ideas.
                  "Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted."
                  -Albert Einstein
                  corporate event space

                  Comment

                  Working...
                  X