At what point am I self employed?

pepsi_max2k

Hey all, I've been buying stuff to sell on for a while, all 2nd hand or retail, and just wondered at what point I should be considered self employed? I'm otherwise unemployed, don't earn enough for income tax, and have just been doing it for fun really. but I can't find any info online about it, other than differentiating between employed and self employed (and I deffinately tick all the self employed boxes). so at what point does buying the odd thing and selling it on become a business?

tinkerbell84

At the point that you make a profit. So if you buy for £1 and sell for £2 you're turning a profit.

You're self employed and must declare your earnings whatever the level.

(It would be different if you were selling your own things).

pepsi_max2k

Surely that would mean any kid who pops in to a sweet shop, buys some and sells them to his mates would be legally self employed then? Oh well, better go register )

Caroline73_2

It's actually before you make you profit. It would technically be the first date the OP sold something that they had purchased with the intention to sell it. That was the start of trading.

pepsi_max2k

found a good link: http://www.startups.co.uk/6678842910863044919/registering-as-self-employed.html

plus, I think you also need to be 16 to be self employed too, so presumably you can do it before 16 without being self employed?

how does buying something with the intention of using it *and* selling it work? I'm guessing not quite the same as it's done all the time with various investments - houses, cars, antiques, etc.

Dave101t

why do you even want to know when you are 'self employed'?

even if i was turning over 1000 profit a month selling things on ebay i wouldnt like to tell anyone and have to pay my rates!

Savvy_Sue

Then you would be breaking the law. Which is up to you, but not what we recommend on this website.

terryw

pepsi_max2k wrote: »

plus, I think you also need to be 16 to be self employed too, so presumably you can do it before 16 without being self employed?

.

Nope, urban myth mate.

terryw

Caroline73_2

pepsi_max2k wrote: »

how does buying something with the intention of using it *and* selling it work? I'm guessing not quite the same as it's done all the time with various investments - houses, cars, antiques, etc.

You buy a house, do improvements and live in it, then sell it on at either a loss or profit when you want to move - not a 'business' transaction. You buy a house, do improvements, sell it at a profit or loss - business transaction.

The important factor is that you said I have been buying stuff to sell on for a while - regardless of their profit or loss status you are running a business and self employed, and need to pay NI and register for SA tax.

Horace

One thing to remember that if the HMRC twig that you have been trading before registering with them they will slap a £1000 fine on you. So go and register today and think up a good business start date.