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Need some help, panicked

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  • Need some help, panicked

    So decided to start my own website to sell my jewellery and now I aam overwhelmed with what else I need to do, now I have a full time job and this was something to do on the side? I don't know what this means for tax purposes as I doubt I will make any profit the first year ?

    I am very confused and overwhelmed ! Now I am considering just getting rid of the website ect And just find craft fairs etc but I know I need insurance for this but all the insurance forms confuse me as I am not sure i will be a business if I did sell this way if that makes sense ?

    Sorry I just don't really know what to do with it all

  • #2
    Hi once you sell one item you are a business and need to register with HMRC as self employed on first day of trading. There are hefty fines if you don't comply. You would also need public and product liability insurance to cover your products and yourself when attending fairs etc. Hth


    • #3
      First of all, and most important, STOP PANICKING! It will do you no good whatsoever.
      Start NOW by making and keeping accurate records of what you spend, and have spent, on your crafting - including equipment and consumables - and equally accurate records of what you sell and have sold.

      Hunt out as many of the old receipts as you can, and put them in a box or folder or envelope or something, and put all new receipts in it too.

      Then, on Monday, or as soon as you can next week; phone up HMRC and say that you'd like to speak to someone regarding registering as self-employed with reference to a small part-time business, and are worried about how to deal with tax matters alongside your salaried job.

      They are very helpful, and may well offer you an appointment to go in and have a chat. It is NOT like going to the dentist, not even remotely.

      There really is only good news - the chances are extremely high that you will end up with a tax refund from your 'proper' job for at least a year or two, as you will - or at least should - be claiming tax relief for all the expenses involved with your embryonic crafting business.

      In my case the situation was more complex than usual as I have several small pensions, some from overseas and thus varying with the exchange rate, which make up my regular income and which had to be taken into account, but HMRC took it upon themselves to contact the Pensions agency and sort things out with them directly; as my tax inspector said, although I was the first person she had personally dealt with with this type of pension income, for sure I wasn't the first person in the country with this type of income, and between the Pensions agency and the taxman, it was soon sorted out to everyone's satisfaction including my own.

      So stop panicking and make a start on things by sorting out receipts you might have kept for craft supplies, writing check-lists of the equipment and supplies you already own, and their approximate value, and maybe clearing a drawer or two, or finding an unused binder and some pockets, which you can use specifically for your future 'accounts', and so you will feel more organised and business-minded when you phone the tax office.

      Good luck and every success!
      Last edited by eena; 06-01-2013, 12:22 AM. Reason: speeling missteaks!


      • #4
        Calm down. Phone HMRC and tell them all about it - they are very helpful and will sort you out.

        Make sure that you keep accurate records of all money in and all money out. Have a look at this blog post - it's very helpful

        It's not rocket science - just take one step at a time - but the taxman is a priority!

        Sorry - duplicate info - I think Eena can type faster than I can! But do have a look at the Cardboard Box Economics post as it's so useful.
        Annie and Lyn


        • #5
          As others say, just contact the HMRC to let them know that you are Believe it or not, HMRC is there to help you, not to catch you out! I have alway found them to be extremely helpful and understanding.

          Make sure you keep a record of everything you spend and every penny you earn. You will pay tax on [income-expenses]. Each year you will have to fill in a tax returns form. It's not particularly time consuming or arduous so long as you keep good records!

          Have a chat with the tax people. They should be able to set your mind at rest.
          ~~The old ways are the future~~


          • #6
            Hasn't all this been covered in another thread?


            • #7
              As Pearlescence said....did we not give this advice on your other thread? There's no need to be overwhelmed...just take the advice given and sit down and read the information and then make a plan of action...
              Sarah x

              ~ The Lilac Dragonfly- Handmade Jewellery ~

              ~ Facebook Page ~


              • #8
                Adding to the chorus - take a deep breath. Calm down. Take this journey one step at a time.

                With the tax men, think good cop, bad cop. We are telling you to contact your local tax office to register as self employed. Think of yourself as Gretel and the tax office as the gingerbread house. They want to entice you in and they are the good cops. These guys are very welcoming and helpful and want to get you set up properly and understanding all the rules that apply to you. Their aim is to make filling your tax form a doddle. They even gave me biscuits with icing on top (I think the cuts might have reduced them to offering plain digestives now .)
                Once you are on the system they have a handle on you and the bad cops can come out to clobber you if you do a Starbucks, Amazon or Google and try to fiddle your taxes. The 'bad cops' are a different bunch of people and the 'good cops' told me they don't talk to them.
                So, until you become a mega chain store or something, you'll be in the hands of the nice tax people. Like Eena said, in a year's time, when you fill in your self assessment form and it tots up the totals you might even get some money back .

                The others are right. We do say the same thing over and over on this forum. The answers don't disappear. They just get buried in our chatter. If you are impatient, there is a search box to right on each page. You can put 'insurance' or what ever you are worrying about - personal tax allowances or craft fairs or profit - in it and it suggests threads you can look at that have those key words in them.
                If you can wait, one of us will remember a good thread, and pull the link out for you.


                • #9
                  Evve You know what why dont you take down your website put all the craft on hold forget all about it for 6 months. For the next six months concentrate on your new full time job. Restart your craft business if you want to in 6 months time. There is only so much a girl can do. You don't have to establish a new business and take on a new full time job at the same time. No wonder you are in melt down.
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