Small earnings (really small)

wovonb

Does anyone know if there is a maximum amount, say £15, that you can earn without having to declare it? I would like to earn some pin money but don't necessarily want to officially start a business. I do however want to do everything lawfully, honestly whatever. Anyone know for sure?

WHA

No, officially, the HMRC would regard even a £1 trading profit as declarable. Trading is really where you buy something specifically to sell it on.

That said, they are unlikely to be too bothered if you really are earning very little, but even £5 per week is £260 per year and worth potentially £50 tax to them, so not declaring small amounts does bear a risk, not just with income tax, but also means tested state benefits etc.

There are quite flexible and generous limits for selling "chattels", i.e. items from your home or hobby that you didn't purchase to re-sell but which you have used personally - you can sell upto a few thousand pounds worth each year without worrying about tax etc.

You may be better regarding it as a hobby, from which you sell or earn small amounts of money, but likewise you spend the same or more on purchases and expenses, so there is no overall profit. But of course, what you are doing does need to be "hobby" related. Eg if you were into model railways, you could buy a train, use it a few times, then sell it on, maybe at a profit, maybe at a loss, but it would be ignored for tax as it was from your hobby, not from a trade.

If you could elaborate on what you propose to do, you may get more specific answers.