Making cash from a hobby Question

mattalex2008

Hi
In the run up to Christmas, i made some Christmas decorations, out of an old stash of beads i've had for years. My family really liked them so made them some too. A lot of their visitors have commented on them, which has led to me wondering if they would sell (along with other beady things i know i can do as well).
My question is
How?
If i go to craft fairs and fetes etc, to sell, would i need to register as a business/self employed? With 2 small children, i wouldn't be doing many, and could take months to make enough to take to sell.
Have looked on registering your business sites, but i get easily lost, and confused by it. Sorry.
Somebody did tell me if i'm not going to be making a great deal (which i wouldn't) i can just sell and not worry about it, but i'm sure that is wrong.
Just loved doing it would love to make a tad extra, as money is short, but don't want to get into any trouble.
Tia, for any advice/info you can give me. xx

gb12345

mattalex2008 wrote: »

Hi
In the run up to Christmas, i made some Christmas decorations, out of an old stash of beads i've had for years. My family really liked them so made them some too. A lot of their visitors have commented on them, which has led to me wondering if they would sell (along with other beady things i know i can do as well).
My question is
How?
If i go to craft fairs and fetes etc, to sell, would i need to register as a business/self employed? With 2 small children, i wouldn't be doing many, and could take months to make enough to take to sell.
Have looked on registering your business sites, but i get easily lost, and confused by it. Sorry.
Somebody did tell me if i'm not going to be making a great deal (which i wouldn't) i can just sell and not worry about it, but i'm sure that is wrong.
Just loved doing it would love to make a tad extra, as money is short, but don't want to get into any trouble.
Tia, for any advice/info you can give me. xx

The person who told you that you could just sell without worrying about it is talking cr!p. If you are generating an income from a business then you need to declare it no matter how small it is. You would have to register as self-employed and complete a tax-return each year.

As to actually selling the items you make, there are a number of options - fetes/craft fairs as you say, then there is also ebay and facebook's local selling pages. There is also a website that is designed for crafty-folk to sell their creations, but I can't remember the details of it.

superskintmouse

You would need to register as self employed and declare any income, you can sell on Etsy, Folksy, Crafty Bums (facebook) Not on the high street and anywhere local you may fancy. Go for it, with minimal outlay its worth testing the water!

trailingspouse

If you're making Christmas decoration, you're unlikely to sell any until around October - this gives you plenty of time to build up a stock, and get to grips with the business side of things. You don't need to register with HMRC until you start trading.
Over the next few months you need to do the following -
- check out potential outlets
- build up a stock of decorations
- find a box and a notebook - the box is for any receipts, eg for more beads - tax deductible, and you'll kick yourself if you can't find them later. The notebook is for writing down your ideas, things that you need to do, addresses, contacts, anything and everything. Once you're up and running, the notebook and box will become a filing cabinet and bookkeeping program - but you don't need these things immediately.
- find a space in the house where you can work without running the risk of small children damaging your half-finished stock, or needing to put everything away at mealtimes.

All the very best with your new venture.

Sparhawke

I work in a second hand bookshop in the Eanam area of Blackburn and one of the women who work at a different office has a daughter who crafts characters, witches and other little dolls and things from bits of fabric.

She gives them us to sell and we get a small cut of the proceeds, this is another avenue for you to consider if you live near anywhere or any shop that could be into that niche, maybe a teashop or something?

If nothing else you are getting your name out there and if you have a website attached people will come to you directly in the future

thriftylass

Here's a good link to a site for HMRC (A guide for people who sell items online, through classified advertisements and at car boot sales) , that should tell you what you need to do depending on your situation http://www.hmrc.gov.uk/guidance/selling/index.htm

Click on the examples in the box on the left

[Deleted User]

I read your thread with great interest, Mattalex2008.

Sounds like you may be on to an enjoyable way to make a bit of cash from your hobby and skill without needing a big amount of start-up capital.

Please keep us posted from time to time on how you are getting on, even the pitfalls if you experience any. It would all help others who are toying with the idea of using a skill and hobby to make a bit extra.

Wishing you the best of luck:beer:

InsideInsurance

trailingspouse wrote: »

If you're making Christmas decoration, you're unlikely to sell any until around October - this gives you plenty of time to build up a stock, and get to grips with the business side of things. You don't need to register with HMRC until you start trading.

They have already started trading, they sold things this year.

You need to register with HMRC urgently and obviously admit your error of having started selling before having registered as a sole trader

suze200

InsideInsurance wrote: »

They have already started trading, they sold things this year.

You need to register with HMRC urgently and obviously admit your error of having started selling before having registered as a sole trader

NO they do NOT need to register with HMRC immediately.They have NOT sold things this year? The OP actually said.

My family really liked them so made them some too. A lot of their visitors have commented on them, which has led to me wondering if they would sell (along with other beady things i know i can do as well).

gb12345

And even if the OP had already started selling, she has not made any error.

The HMRC rules say that you need to register for self-assessment as soon as you can after starting your business and the deadline is the 5 October following the end of the tax year you start trading in.

soolin

gb12345 wrote: »

And even if the OP had already started selling, she has not made any error.

The HMRC rules say that you need to register for self-assessment as soon as you can after starting your business and the deadline is the 5 October following the end of the tax year you start trading in.

I'm not sure where you get your info from, but you do not have that length of time to register with HMRC. It is within 3 months of starting, and of course if you want to avoid paying NI you need to get your small exemption forms in ASAP.