Declaring last three years of trading?

antrobus

rosesinwinter wrote: »

I started making crafts about three years ago and thought I'd have a go at selling them on ebay, along with selling my usual clutter - used clothes etc - via a private account. However, I've always been running at a loss and genuinely (stupidly) thought I wouldn't have to register with HMRC until I started making a profit.

But in looking at setting up a shop in desperation to recoup craft expenditure, I've come to my senses & realise that I fit the description of a trader and should have registered with HMRC even if I have been making a loss. ...

That is not as stupid as you think. Plenty of people have a hobby such as 'making crafts' and seek to defray some of their costs by selling some of the items produced. That is not trading. Or at least not necessarily so, so HMRC does not need to be told.

Plenty of people who also have a hobby such as 'making crafts', sell some of the items, and then decide to do move it onto a more commerical basis, and do something like 'open a shop', and then notify HMRC that they are now trading.

antrobus

rosesinwinter wrote: »

...
Please could someone advise on:

1) How much HMRC are likely to fine me if I declare the last 3 years (again, it is at a loss!!) ...

Absolutely nothing. HMRC tend not to impose penalties on people who make vouluntary disclosure of their failure to make a return, particularly when the failure has resulted in no loss to the public purse.

rosesinwinter wrote: »

.....2) How can I get proof of income from ebay (can only download csv files over the last 90 days). I have recorded the majority of the money I have spent on craft stuff in a simple table....

You don't need to prove your income. Under self assessment HMRC will believe what you tell them, unless they have reason to think otherwise.

rosesinwinter wrote: »

...
2) is it in my interests to set up a completely new shop on ebay (forgoing my 100% feedback) and keep a separate personal a/c? The shop will be to sell my craft items and any surplus materials I'm not using.

It's certainly a good idea to keep your business separate from your personal activities.