Selling on Etsy

omya

This is my first post in this forum, which I only discovered recently
I am seriously thinking about setting up my own Etsy shop to sell my handmade (crocheted) stuff...this is all new for me, and obvioulsy I want to do it right...
My question is what are the legal requirements for such a shop? What do I need to do before (and after) setting the shop up?
Thanks in advance.

Asnu

What do you need to do before setting the shop up?

Your own research!

People here are more than prepared to help those trying to help themselves, but are not going to spoon-feed anyone.

omya

Thank you very much for your reply Asnu...I did some research, but I was confused about whether I need to register for VAT or not? and if not, should I still register as self-employed.

simplydevine05

You need to register as self employed with HMRC and keep accounts to do an annual tax return. You can do this yourself and do not need an accountant. You need to read up on the Sale of Goods Act and the Consumer Contract Regulations as you have to adhere to these or face the wrath of Trading Standards. If you sell items for children check whether they need to be CE certified.
There are a lot of help guides on Etsy. Read them as they will help you with your listings.

00ec25

omya wrote: »

Thank you very much for your reply Asnu...I did some research, but I was confused about whether I need to register for VAT or not? and if not, should I still register as self-employed.

why not google "register for VAT" ?

it is not compulsory to do so unless your total sales are >£85,000 in a (rolling) 12 month period

you can voluntarily register if under that threshold, but to do so would be foolish if your customers are mainly consumers who cannot reclaim the VAT themselves. Anyway, if your business is relying on recovering more VAT than you pay then your business is a failure and your margins and business plan are rotten

you will have an income, yes you must register as self employed, since you will be!

read up on the £1,000 micro trading tax allowance effective from 6 April 2017

omya

Thank you very much for the very helpful information. I will work on this, and if I need any clarification, I will come back here and ask again:) Thank you again.