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Registering as sole trader for crafts business? Any implications on tax?

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  • Registering as sole trader for crafts business? Any implications on tax?

    Hello I was wondering if anyone here has done something similar - I run a decent size crafts business alongside my part time job and have been looking into registering as a sole trader, but I was wondering about how tax will work then? Currently all my profits come under my income tax (calculable easily by this income tax calculator I use - income-tax.co.uk ), what would they come under now? I haven't been able to find anything about that and I'm completely stumped. I'll be setting up another bank account to help me separate personal finances from the crafts business, and help with managing money/bookkeeping if it means anything. Many thanks in advance!

  • #2
    Hello and welcome to the forum.

    There are a number of us here who run a crafts business alongside employment/pensions/other business.

    My business is pure hobby, but because I sell I am registered with HMRC as a sole trader business.
    I complete the short income tax return as my cash flow is way below the HMRC requirement for more detailed information,and there is a section on the form for business income and expenditure.
    These figures are included in the calculations for my income tax (I'm currently not employed but were taken into account when I did have a job). Your local tax office should be able to clarify matters for your situation - or if you have a tame accountant they should be able to give you relevant information.

    The tax offices used to do free one day courses to help people with things like recording accounts etc, but I'm not sure if they still do so. It might be worth enquiring.

    Hope this gives you a starting point for acquiring the information you need.
    Linda

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