Need help with declaring extra income (too late)

dori2o

SeniorSam wrote: »

In general people making craft items in their spare time never make any profit as the raw items, tools and equipment far outweigh what thay are likely to receive.

I also do this craft thing now I have retired and although I do declare what income I receive, the expenses are far greater so I do not pay tax on that.

Explain to the taxman, but you should have declared it.

Sam

Not every case is the same, and from the OP's opening post it does seem that they have made a profit, albeit a small one, but a profit none the less.

icicat

Resurrecting this thread! Thank you so much for your replies folks, I have read through all of them and it all really helps.

At the moment I think I have lost money by adding this extra income onto my tax code as the total amount included postage costs and there were material and labor costs involved that I should have expensed though could only do this through registering as self employed. So I have lost money by declaring the full amount paid in. Should have though it through more.

So my extra earnings were much less for 2015-2016 and so before April I rang HMRC and got them to again alter the tax code to this amount. Their advice was that if I registered as self employed then I can ring them and put my tax code back to default for 2016-2017. Still not sure how my tax from the extra earnings from 2014-15 (£1,856) will get paid off in full? Will they carry this on through my tax code? Or send me a bill for the remainder?

Though it's pretty crushing as I want to sell my hobby stuff but being taxed at 40% there doesn't seem much point. So still deciding whether I go ahead with the self employed thing or not. I guess this time I can expense quite a lot of things. Also does anyone know if I can expense business related costs that I would make before registering as self employed?