An issue with my wife...

David_Crestwood

Hi there,

I am a full time teacher earning around £40,000 a year. In my spare time I make furniture out of reclaimed pallet wood. Up until recently I only sold the occasional item to family and friends. My wife is a full time mum and a self-employed artist. She also upcycles furniture and occasionally sells the odd item. She is registered as self-employed as an artist.

Recently we have set up an Etsy shop selling upcycled furniture and the pallet wood items I make. We are both named as owners. The items that I make seem popular - we have had three orders totalling around £250 in the past two weeks.

What I would like to know is, can my wife sell the furniture that I make and receive the money and declare it as her earnings. She is nowhere near her personal allowance limit and it would be a great way to supplement our family income.

Or do I need to declare it myself as I am the person making the furniture?

Many thanks,
David.

TheCyclingProgrammer

I would say yes, with the caveat being - it's not about who makes the furniture that matters (all shops sell things made by other people) but whose name the online shop is in.

I'm not entirely sure how etsy works and who the principles are in the transaction - dies the consumer buy from etsy and etsy have a separate agreement with the shop owner or is the sale directly between the consumer and the shop owner?

If it's the former, who is the agreement with etsy between? If the latter who is the shop owner? Who does the money get paid to?

If its all in your wife's name then I'd say it's her business and her income.

sheramber

You say you are both named as owners on Etsy. Would that not make it a partnership?

Will you name appear on any paperwork, invoices etc?

Keep_pedalling

As it stands I would have thought that HMRC would view that as a partnership. Is it a simple matter to amend your Etsy account so that it is entirely in your wife's name?

If she is selling the stuff you make solely under her own name then that would be fine, as you can give your wife as much stuff as you like and she is free to sell it.