Tax

Horse_Owner

If I made items for a car boot would I have to pay tax?

soolin

Horse_Owner wrote: »

If I made items for a car boot would I have to pay tax?

The short answer is yes if your personal allowances are used elsewhere.

Regardless of whether you work elsewhere or not you should still register as self employed with HMRC, but all your associated costs can be taken from your gross profit before you get to a net taxable income.

wileycat

Would you have to OR do you have to....

If its a business style thing you should pay tax in techincal terms.

kevinyork

Well you should definately register as a business with the Taxman and request a Tax Return to fill in. Whether you pay tax on that income depends on if your allowances ave already been eaten up by other income.

I know many car booters wouldnt bother but thats the risk they take. The Taxman can be extremely unforgiving if they discover a business that isnt registered or non declared income.

martindow

I think it is best to register early on. When you do your books and set all of your expenses against your sales you may well find that the profit is minimal.

I believe you should register within 3 months of starting trading. If you don't register when you should you can have problems if your venture becomes a success and grows.

An acquaintance started a small venture which to his surprise grew rapidly. He was forced to declare it and was given a hard time by the Revenue for not registering within the time limit.