Can I start a hobby business whilst on UC?

kcakes

I have been claiming UC now for the past 3 months whilst I stay at home to look after my 2 young children (my husband is working full time). 
I would like to start up a small business on Etsy selling things I make. Due to the time involved to make them I would want to charge something for my time in the price. 
I dont expect to make much and certainly wouldn't expect to make something every week. 
Is this allowed whilst on universal credit? If so, how to I find out about how to go about it? All I can find online is info on setting up proper businesses but as this will just be a small hobby type business I cant see it applying. 

Thanks is advance

kcakes

I should also state that I am enquiring how to set up as a small crating business whilst on UC. I wasn't asking if I needed to declare it as I know I would. Sorry for any confusion 

NedS

Yes, you can. Normally you would talk to your work coach about it and they will advise you.

As soon as you start trading, you will need to report a change of circumstance in your online account under Work and Earnings to say that you have started work self employed. You will be asked to report your income and expenses each month in your online UC account.

If your self employed income is more than £1000 per year you will be required to register as self employed with HMRC and file a self assessment tax return each year. If you stay under the £1000 per year limit, there is no requirement to register or file a self assessment tax return. HMRC's website has lots of information.

kcakes

This is really really helpful thank you so much. As I have only been claiming for a few months I'm still working out how things work. I will contact my work coach. 
Many thanks again