has anyone got an etsy shop?

bargainfinder1992

I need some advice regarding an etsy shop please? I wanted to open one today but I'm really confused on tax and stuff, I don't want to be in trouble with any tax men! I work part time too and just want to sell some hand made goods alongside as thats my hobby but I don't know how to go on? ...
Has anyone got an etsy shop that can give me a step by step guide through the tax for opening a etsy shop?

Maysie

http://www.hmrc.gov.uk/businesses/moreiwtregister-a-new-business.shtml always a good place to start.

bargainfinder1992

Does the working for yourself part valid if I also work for a company? Etsy is just to sell a few home made items

Any

You will need to register as self employed.
If you are making these items with a view of making profit on them, then that is being self employed.

As you are already employed, you are earning (possibly) over your tax free amount. So you will have to pay tax on everything you earn. ON PROFIT that is. So sales less costs such as fees, postage, materials...
This will be done after the end of the tax year - ie if you start now, after April 2014.
Here is the details and what to keep http://www.hmrc.gov.uk/sa/complete-self-emp.htm

Then the second thing to consider is paying NI (national insurance).
For self employed there are 2 of those to pay - Class 2 and class 4.
Class 2 National Insurance contributions are paid at a flat rate of £2.70 a week
Class 4 National Insurance contributions are paid as a percentage of your annual taxable profits - 9 per cent on profits between £7,755 and £41,450, and a further 2 per cent on profits over that amount.
If your profits are expected to be less than £5,725 you may not have to pay Class 2 National Insurance contributions.
Source http://www.hmrc.gov.uk/ni/intro/basics.htm

So unless you are expecting to be earning more then £5725 on Etsy, then you shouldn't need to pay.
You will need to complete a form for exception for the weekly payments, near the bottom of this page
http://www.hmrc.gov.uk/working/intro/class2.htm

Any

Otherwise I cannot help you more about Etsy, I speak as an accountant, not Etsy seller.

lucystardust

Call HMRC's helpline number, they were really helpful when I called. I was worried about the tax stuff being complicated but it doesn't sound so bad. Just remember to keep all your receipts for any materials you buy and postage when you send items out.