Confused re £1000 trading allowance!

HappyBunny70

I apologise in advance as I am completely new to this and for the fact that the answer to my question is probably completely obvious to most people 😖

I've been selling homemade crafts for just over a year. It  basically began as a hobby during the first lockdown but I eventually had so many creations that I started to sell them on Etsy!

So now I'm not sure if I need to inform HMRC or register as self employed? I'm worried about doing something wrong...

In 2020/21 I earnt just over £1000 but my expenditure was about £800, so around £300 profit. I'm unclear whether it's the overall income or the £300 profit that counts?

I don't have any other job/income. My partner works and we receive tax credits.

Oh, also is registering as self employed separate to self-assessment? 

Thank you very much in advance! RamElle 

pramsay13

If your income is over £1000 you need to register for self assessment so that's the position you are in. 

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

wegptrem

As well as the link pramsay13 has given you, you might find this thread helpful, someone asked something similar a few days ago

https://forums.moneysavingexpert.com/discussion/comment/78446181#Comment_78446181

You need to register with HMRC once your turnover is £1000+, not your profit.

HappyBunny70

Perfect, thank you!