Do I need to pay tax?

anneka12

I work full time and pay the correct tax through my pay slips. Howver I make and sell jewellery, odd bits, I make a small profit. I sell to friends mainly and I advertise on face book. Im currently donating the profits to chairty. DO I need to declare this to the tax man and pay extra tax? Thank you

xylophone

http://www.hmrc.gov.uk/businesses/giving/self-employed.htm
might be worth a read.

sweetietot

I think you should be declaring the income to HMRC as it is still taxable even if you give it away but you would be better posting the query in Cutting Tax section of the forum to get a more definitive answer

KiKi

Yes, you need to declare all income to HMRC, even if it's not taxable. You will probably be asked to complete a self assessment, and you can state there how much you donate to charity, which will raise your 20% tax threshold anyway.

You'll need to keep all records of money spent on materials / other expenses, and how much was sold and for what price.

HTH
KiKi