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Confused re £1000 trading allowance!
HappyBunny70
Posts: 2 Newbie
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
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
0
Comments
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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-income1 -
As well as the link pramsay13 has given you, you might find this thread helpful, someone asked something similar a few days agoYou need to register with HMRC once your turnover is £1000+, not your profit.
2 -
Perfect, thank you!
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