Query about selling craft-work

Prinzessilein

I am on ESA (support) and PiP (Enhanced Care, Standadrd Mobility).

When my disabilities allow, I do a little craft work - sewing, knitting, sketching...that sort of thing.

Now, a few days ago an acquaintance came for coffee with Mum, and I was there with my knitting....The acquaintance expressed an interest in my work...I was knitting a hat for myself.

She then said that she runs a market stall and does car-boot-sales. She asked if I would like to make some more hats and she would sell them....She thought the hats would sell well ...and we would split the money 50/50.

I thanked her for the nice words about my hat, but pointed out that I cannot guarantee any number of hats...one day I can knit, and then maybe 3 or 4 days my hands don't allow the work...also, I am not sure of the law on someone on disability selling stuff. (Actually most of the talking was done by my carer/Mum...but you get the idea!)

She smiled and said that a number of people on benefits sell stuff at the market - and many more at the car-boots. She said that it is quite permissible for someone to make a craft item...eg I can knit myself a hat....it is quite permissible for someone to make an item as a gift ...eg I could knit a hat, say, for Mum....so all that people do is make their items, and then gift' them to this woman who then sells them as her own items. She gives the share of the price as 'payment of materials'

Now, I know that I could never make enough items to sell. ....and I am also compulsively honest! (I would want to declare every item sold)...but it led me to look online and there really doesn't seem to be any official ruling...

What is the actual law regarding selling items that you have made?

poppy12345

Hi,
If it's to sell for money then you would need to contact DWP about permitted work. You can earn up to £120 per week and working less then 16 hours. Those in the Support Group can do permitted work for an unlimited amount of time. Permitted work doesn't affect your ESA money but if what you do contradicts the reasons why you claim ESA then this could go against you at your next assessment.

Loanranger

I think the tax office might be interested in the stall holder and her friends!

Prinzessilein

Thanks Poppy.

I would not think of doing this myself ...as explained, I would never be able to guarantee making enough for sale. ..(I start Christmas cards in August so that I can be sure of getting a few ready for December!)

But I did wonder whether those people who DO supply this woman were perhaps going to find themselves in trouble.

Prinzessilein

Loanranger...I don't know about the carboots...but the market is one with fixed stalls that you rent...I'm guessing that the stallholder has to file tax returns for this ...(the carboots would be harder to regulate I suppose)

It did cross my mind that the stall owner was on to a good thing...getting a 50/50share.... whereas, by the time they looked at the cost of materials then the crafter probably only makes a pound or two.

Loanranger

You earn money, any way you do it is irrelevant, and YOU have to fill in a tax return. That's the law.
You are allowed to earn a certain amount before you are liable for tax, it's called the personal allowance, but you need to be aware of it.

Sncjw

Also remember to factor in costs for your time.

Ames

Unless I'm reading it wrong, earnings of less than £1000 a year don't need to be declared for tax:

Where the allowances cover all of an individual’s relevant income (before expenses) then they will no longer have to declare or pay tax on this income

https://www.gov.uk/government/publications/income-tax-new-tax-allowance-for-property-and-trading-income/income-tax-new-tax-allowance-for-property-and-trading-income

But the profit would have to be declared to the DWP.

Don't forget that if you're working from patterns then they could have copyright which means you can't sell the finished goods.

sheramber

Ames wrote: »

Unless I'm reading it wrong, earnings of less than £1000 a year don't need to be declared for tax:



https://www.gov.uk/government/publications/income-tax-new-tax-allowance-for-property-and-trading-income/income-tax-new-tax-allowance-for-property-and-trading-income[/UR/QUOTE]


That was a proposal and did not happen..

Ames

sheramber wrote: »

Ames wrote: »

Unless I'm reading it wrong, earnings of less than £1000 a year don't need to be declared for tax:



https://www.gov.uk/government/publications/income-tax-new-tax-allowance-for-property-and-trading-income/income-tax-new-tax-allowance-for-property-and-trading-income[/UR/QUOTE]


That was a proposal and did not happen..

Sorry, I didn't realise it had been scrapped.

iammumtoone

sheramber wrote: »

That was a proposal and did not happen..

I was under the impression it was going to happen and a date had been given for it to start?

EDIT: found links to say it was in the budget to start April 2017 but can't find a link to say it didn't, or it did for that matter. Will carry on searching.

Re-EDIT: found it on here https://www.moneysavingexpert.com/news/protect/2017/04/government-drops-1000-tax-breaks-for-online-sellers-and-room-renters-for-now

thanks for pointing that out sheramber I suspect a lot of people may be caught out, as it was widely published it would happen but not so much it didn't