Pensioner: casual work making crafts

BubbleOfLife

I am writing on behalf of my mum who is a pensioner (recently turned 79) and has basic computer/internet knowledge.

Mum enjoys making crafts which she sells occasionally at little church fairs and street markets, when the weather permits. She's been at one of our street market only three times, once a week (she could not afford more than that in terms of money and energy), to increase her chances of selling more of her crafts. So far she's not made a profit comparing with what she's been spending so far. I don't want to stop her from doing what she loves and gives her lots of personal satisfaction, but I am a little worried about the finance side of things, i.e. taxes and her pension (state pension), and we want to make sure that everything is in order with HMRC.

So, my question is: Would mum be required to register as self-employed? And how it would affect her state pension (non-UK state pension she receives from EU country)?

PasturesNew

She is self-employed - the selling at church fairs nails that.

She's selling, intending that they'd be sold.

If she's not making money, maybe there are other ways she could enjoy it without losing money. e.g. is there a local charity or two she could hook up with to make them for them to resell... and, in doing so, for the charity to request donations of the materials she needs. What's she making? What are her materials?

Or she could run a U3A class to show people how to make those things - and charge a small fee to cover her materials (£2-3/person or whatever's appropriate).

kidmugsy

The newish Trading Allowance of £1k p.a. is worth a look at.

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

marlot

If her only other income is her state pension then she's probably below the 11.5k income tax threshold?


In which case, I'd leave well alone. But encourage her to keep a record of her income and expenditure.


My wife does something similar, but is registered as self employed. She took out some public liability insurance in case someone is injured eithr with one of her products, or at one the classes she teaches from time to time. I also had to tell our home insurance people about the small amount of stock she holds at the house.

sheramber

if she makes less than £1000 in a year she does not need to tell HMRC as per the link above.

Any other income she has does not affect the state pension in any way.

OldMusicGuy

Just to clarify, if she earns income of more than £1,000 per annum, she should register with HMRC as a sole trader. Not a profit of £1,000, it's the income which is the threshold. Her total taxable income will include pensions, profits from the business (income less allowable expenses) and any other income. If this is over the personal allowance in total, she pays tax on it.