Start a 'cottage industry'... official MoneySavingExpert.com discussion

System

Hello, this is my first post here and I have no idea if I'm in the right place or not (please direct me to the right place if not ).

I am a full time student, studying illustration. As a little experiment to see if people want to buy my work, I've started using sites such as Redbubble, Zazzle and Society 6. Generally on each site, you upload your design/image onto different items and products. If someone wants to buy something, they order it and then the website in question will print it and send it to the customer without you having to do anything and you then get a percentage of the cost (varies between 10-20% depending on the site..).

My confusion is to do with tax and declaring income etc.

Does this make me freelance? Do I have to declare my earnings even if I'll make nowhere near the point where I'd have to pay tax (I'm guessing I do but have no idea how)?

I'm considering obviously contacting HMRC but after going on their site and trying to find the right section for me to be in to find the right number, I'm just more confused. I'm pretty new to all this.

If anyone can offer any kind of help or advice I'd appreciate it!

Again, I have no idea if I'm writing this in the right section! :huh:

Thanks!

Listerbelle

Finefoot wrote: »

I am thinking of offering sewing classes to kids during the school holidays. Has anyone tried this ?
Any tips?

This is a place that we've considered for our little daughter (for when she gets older).
http://www.homeecstudio.com/index.html

JimmyTheWig

dikittypants wrote: »

If someone wants to buy something, they order it and then the website in question will print it and send it to the customer without you having to do anything and you then get a percentage of the cost (varies between 10-20% depending on the site..).

My confusion is to do with tax and declaring income etc.

Does this make me freelance? Do I have to declare my earnings even if I'll make nowhere near the point where I'd have to pay tax (I'm guessing I do but have no idea how)?

Without knowing anything about these sites, it is clear that you are in business. So you are either employed by these sites (I'm guessing not. For example, I presume they don't give you paid holidays, you haven't given them your NI number, etc) or you are self-employed.

So yes, you have to declare your income. You will have to do a tax return. As it happens, your tax return will not result in you having to pay any tax if you don't earn enough.
You will either have to pay national insurance or apply for a small earnings certificate. Getting a small earnings certificate won't be a problem, but you may choose to pay the contributions anyway as it may help in the next few years with maternity allowance, etc.

HMRC are actually quite helpful with stuff like this.
Try looking in your phone book, if you have one, if you can't find the right number online.

System

JimmyTheWig wrote: »

Without knowing anything about these sites, it is clear that you are in business. So you are either employed by these sites (I'm guessing not. For example, I presume they don't give you paid holidays, you haven't given them your NI number, etc) or you are self-employed.

So yes, you have to declare your income. You will have to do a tax return. As it happens, your tax return will not result in you having to pay any tax if you don't earn enough.
You will either have to pay national insurance or apply for a small earnings certificate. Getting a small earnings certificate won't be a problem, but you may choose to pay the contributions anyway as it may help in the next few years with maternity allowance, etc.

HMRC are actually quite helpful with stuff like this.
Try looking in your phone book, if you have one, if you can't find the right number online.

Thanks, I rang up HMRC. The first guy didn't know what it counts as, but went and asked someone else and then came back and said I was self employed. He then gave me another number to ring and after explaining it all again I registered as self-employed. I'm only likely to make about £20 a year or something but at least it's all legal now. I'll be finishing uni this time next year so after this first year of selling on these sites I'll probably cancel being self employed and see where graduation (or the end of year art shows) take me...if anywhere.

Wannabe01

Hi,

I have just come across this thread and I have been busy reading through the posts and taking inspiration from everybody’s ideas and experience.

I am mum to two children, one school aged and one little one. Recently hubby has started working full time and I work a few hours per week. I have a bit of a creative side and recently I have made and designed my own table decorations, stationery, favours and cake for our wedding. On the wedding day I received a lot of compliments and overheard people saying how good it looked.

Although people were impressed with what I had done I am trying to figure out how to make even pocket money from it. The impressed people have been friends and family therefore can I impress people to make them want to purchase. I guess the profitability of the idea will depend on the costs to make the item and how much I can sell it for, if in fact I can even sell it.

I will certainly give it a go and see what I can do, if things don’t sell then I can always use them as presents for friends and family.

chrisecole

I am thinking of starting up a cottage industry and have the main equipment but would need supplies. Does any one know of any grants available.

maribonbon

hiya, am just starting out trying to sell my crafts. I do a lot of different things from crochet to beaded bookmarks. Has always just been a hobby. Then I got sick and lost my job. OH wage is not quite enough to keep us afloat. I don't have a lot of confidence in my makes but have been told the things are nice and have been convinced to try a school fair in Sept. (£30 for a stall!) am now very nervous......

Fabbyfee

Hi folks,
I've been considering trying to start selling homemade children's clothes and toys. My main hope is that I can generate some pocket money to make life a little easier when I go back to work (currently on mat leave)

Apologies if this has been asked & answered but I've had a quick look at the thread and couldn't see anything

My questions are
1) if I make things from home & sell via the internet do I still need public liability insurance?
And
2) my home insurance/mortgage said operating a business from the property wasn't allowed - is there anyway round this?

Hope that doesn't sound silly and thanks in advance for your help

lincroft1710

Fabbyfee wrote: »

1) if I make things from home & sell via the internet do I still need public liability insurance?

You don't need public liability insurance, BUT you do need product liability insurance.

Fabbyfee

Thanks lincroft, I'll investigate product liability insurance before I get started :-D