Selling handmade items for cash

angelicmandy

Hello, I am considering selling handmade jewellery in order to earn a little extra cash. I do not however want to set up as a business or self-employed. I have a full time job - completely nothing to do with jewellery and currently earn £16,000.00 a year. I would just really want to sell to family &friends, on ebay under my own private listing - not a business one & maybe a couple of local shops if they will agree to do so. I am a basic taxpayer and wondered if i am ok to go ahead and do this without declaring it or registering it with HMRC etc. I will not be making much money from it so guess I am ok unless I go up to the next bracket in tax ?
thank you

asajj

There is a craft forum and couple of people there doing this I think.

Selling your friends, family shouldn't be a problem.

I think Ebay has a limit on how many listings you have etc. I'd read their rules.

For local shops - they might require paperwork?

Tax isn't about how much money you make. It is about the nature of the job.

lovinituk

angelicmandy wrote: »

I am a basic taxpayer and wondered if i am ok to go ahead and do this without declaring it or registering it with HMRC etc. I will not be making much money from it so guess I am ok unless I go up to the next bracket in tax ?

No, not ok I'm afraid.

If you are making something to sell for a profit then you are automatically acting as a business and are required to register with HMRC and declare the additional income. You will also have to declare the additional income for tax credits if appropriate.

aklmatthews

no all income has to be declared it is no different to working and getting paid cash in hand and not paying tax on it. If you have shops selling your items they will be doing accounts and probably have you in there records as a supplier also HMRC do check ebay and other online selling sites and do random checks on sellers so not worth taking a risk. You will only need to pay tax on the profit you make not the total income from selling.

anamenottaken

angelicmandy wrote: »

Hello, I am considering selling handmade jewellery in order to earn a little extra cash. I do not however want to set up as a business or self-employed. I have a full time job - completely nothing to do with jewellery and currently earn £16,000.00 a year. I would just really want to sell to family &friends, on ebay under my own private listing - not a business one & maybe a couple of local shops if they will agree to do so. I am a basic taxpayer and wondered if i am ok to go ahead and do this without declaring it or registering it with HMRC etc. I will not be making much money from it so guess I am ok unless I go up to the next bracket in tax ?
thank you

If you sell things you have made with the intention of selling that is being self-employed, whether or not you want to call it that.

Selling such things on ebay or via local shops is running a business, whether or not you think it is.

As you don't expect to earn much (you haven't said what you mean by this) it may be OK just to let them know after the end of the tax year (5 April) and they will confirm how much tax you would have to pay. If you don't earn much in profit (and the tax is on your profit, not what is paid for the items), then it will be at 20%. It would be sensible to contact HMRC just to check that out with them - keep a note of to whom you speak and when.

soolin

as above, if you make things to sell then you are a business and must be registered as such with eBay and with HMRC.

iammumtoone

just a question relating to this I have always wondered about.

I know to sell handmade stuff you have to be registered with HRMC but regarding ebay do you have to have a business account or can you sell on a personal account (as long as you are declaring profits)

asajj

iammumtoone wrote: »

just a question relating to this I have always wondered about.

I know to sell handmade stuff you have to be registered with HRMC but regarding ebay do you have to have a business account or can you sell on a personal account (as long as you are declaring profits)

http://lastdropofink.co.uk/market-places/ebay/the-difference-between-a-private-a-business-ebay-account/

A good comparison.

You don't have to but you will get a limit on private sellings and it is generally more expensive to sell.

iammumtoone

asajj wrote: »

You don't have to but you will get a limit on private sellings and it is generally more expensive to sell.

true but for a lot of very small sellers like the OP wants to, it is probably worth it not to have their personal home name and address details shown.

soolin

iammumtoone wrote: »

just a question relating to this I have always wondered about.

I know to sell handmade stuff you have to be registered with HRMC but regarding ebay do you have to have a business account or can you sell on a personal account (as long as you are declaring profits)

You should use a business account , using a private account and masquerading as a private seller would be against eBay rules.

asajj wrote: »

http://lastdropofink.co.uk/market-places/ebay/the-difference-between-a-private-a-business-ebay-account/

A good comparison.

You don't have to but you will get a limit on private sellings and it is generally more expensive to sell.

You do have to, eBay are quite clear as to what a private account is for, and it is not to be used by a business. I doesn't bode well to start up a hopefully profitable side line by being incorrectly registered.

iammumtoone wrote: »

true but for a lot of very small sellers like the OP wants to, it is probably worth it not to have their personal home name and address details shown.

There is no choice in the matter, UK law requires certain things of a business seller, and that includes a geographic address to be displayed and proper returns policies. A seller cannot pick and choose which laws to abide by.

I'm sure we all know people who are incorrectly using private accounts on eBay, however, the fact that they get away with it for a while doesn't mean it is allowed or even a good idea. Unless OP is going to pretend that all these lovely,handmade items are second hand things she has just hanging about, it is going to be pretty obvious as soon as she starts listing her hand made items that she is trading.

soolin

http://sellercentre.ebay.co.uk/how-register-ebay?cat=34


Should I register as a business?
Choose a business account if you:


Sell items that you produced yourself to sell.