Declaring Income Question - Part-time Photographer

gohan2091

Hi,

I've been working paid part-time (15 hours a week) for a charity since March 2013. I've been doing photography as a hobby for nearly two years now and have paid thousands from my savings in Photography gear. At the end of April 2013, I did a Wedding of which I was paid £50. Since then, I have done several other events and Weddings of which I have been paid small amounts (£50 - £125).

I don't appear to be earning enough money to pay National Insurance (although I've noticed I have been paying National Insurance for the last few months due to overtime from my pay slips). Should I be registering myself as self-employed for the photography side? or fill in a self-assessement form? I understand I can do this online and the deadline is 31st January, is this correct? If this is so, I better do this asap.

From what I read, I don't think I would have to pay any tax because my income is so low, is this correct? I still wish to declare it though. I aim to increase my photography work and charge more money in the future but as I said, at the moment, it's still a hobby with a few paid jobs over the months.

Thanks for any advice.

Funky_Bold_Ribena

Yes of course you should, as soon as you are do work as self-employed you need to register as self-employed.

Sharon87

When did you do the work? If it was this tax year (apr 2013-14) then the deadline is January NEXT year as this year is still incomplete.

Also any equipment you've bought (in a certain time period, unsure how long it can go back) can be classed as expenses and don't forget about travel to the events as well. Just keep every receipt (VAT receipt)

spacey2012

Yes, you should and when you do, you will soon realise why no professional can work for £50 as a wedding photographer.

antrobus

gohan2091 wrote: »

.... I still wish to declare it though. I aim to increase my photography work and charge more money in the future but as I said, at the moment, it's still a hobby with a few paid jobs over the months.

Thanks for any advice.

The real question you are asking is this; when does my hobby become a business? It's a question that has been asked before, and will be asked again. See this current thread here for example https://forums.moneysavingexpert.com/discussion/4859051

The answer is it all depends. But the deciding factor is not whether or not you're charging for your services, it's whether or not charging for your services with the intention of making a profit. Simply charging a few quid to cover your expenses does not make your hobby a business.

See Example 1 here
http://www.hmrc.gov.uk/guidance/selling/examples.htm

gohan2091

Sharon87 wrote: »

When did you do the work? If it was this tax year (apr 2013-14) then the deadline is January NEXT year as this year is still incomplete.

Also any equipment you've bought (in a certain time period, unsure how long it can go back) can be classed as expenses and don't forget about travel to the events as well. Just keep every receipt (VAT receipt)

As I said in my orignal post. I did my first paid Wedding at the end of April 2013 so what does this mean? You said next year, so January 2015?

I don't have a VAT receipt. What is this? You mean the receipt for my equipment? I purchased this starting late 2011 and I have been purchasing ever since. I never planned to mention this as an expense, I purchase the equipment for my hobby.

spacey2012 wrote: »

Yes, you should and when you do, you will soon realise why no professional can work for £50 as a wedding photographer.

I am not a professional though. What would you class as a reasonable price for a Wedding photographer?

antrobus wrote: »

The real question you are asking is this; when does my hobby become a business? It's a question that has been asked before, and will be asked again. See this current thread here for example https://forums.moneysavingexpert.com/discussion/4859051

The answer is it all depends. But the deciding factor is not whether or not you're charging for your services, it's whether or not charging for your services with the intention of making a profit. Simply charging a few quid to cover your expenses does not make your hobby a business.

See Example 1 here
http://www.hmrc.gov.uk/guidance/selling/examples.htm

I've made a few hundred pounds from the photography jobs I have done but my gear costs over £3500. Could this be to cover the expenses of my equipment?

DKLS

I am not a professional though. What would you class as a reasonable price for a Wedding photographer?


I paid £1200 and that was mates rates he normally charges 2-3k

I've made a few hundred pounds from the photography jobs I have done but my gear costs over £3500. Could this be to cover the expenses of my equipment?


Yes you can offset the cost of your kit against tax, friend above has over 40k worth of kit.

gohan2091

DKLS wrote: »

I am not a professional though. What would you class as a reasonable price for a Wedding photographer?


I paid £1200 and that was mates rates he normally charges 2-3k

I've made a few hundred pounds from the photography jobs I have done but my gear costs over £3500. Could this be to cover the expenses of my equipment?


Yes you can offset the cost of your kit against tax, friend above has over 40k worth of kit.

Wow, that's so much money! I would class my photography as good and I know I have been undercharging. When I comapre mine to professionals, I don't see a big difference in the results.

I think even without mentioning the gear expenses, I wouldn't have to pay any tax since my earnings have been so low. I think I should phone them sometime next week and ask about this.

spacey2012

The difference is a professional does not have a second income to subsidise the hobby, all equipment has to be funded and pay for itself and ever hour spent at the computer messing with pictures is an hour of pay that has to be accounted for.

They can usually spot a hobby guy, they have all the latest equipment and up to date gear, the pro's usually have a set of well used reliable old gear.

gohan2091

When I do a job, I spend many hours editing and enhancing the photos. I do a good job and I think I should be charging much more than I am. I don't want to get into trouble with HMRC. Should I declare myself as self-employed or should I just state that what I earn every year?

DKLS

gohan2091 wrote: »

When I do a job, I spend many hours editing and enhancing the photos. I do a good job and I think I should be charging much more than I am.

How many hours do you put into post-production?


You may find you are working for less than minimum wage if your not careful. But I guess it comes down to whether you want to run a business or a hobby that pays for new kit and covers all costs i.e you never make a profit.