When does a hobby turn into a business?

Sandtree

pjcox2005 said:

Sandtree said:

pjcox2005 said:

As for the rest, unless what you do risks harm to someone (e.g. injury from an activity, food poisonings from cooking, realistic chance of fire if faulty electrics) then I would just go with it rather than worrying about practicalities (personal insurance would be key in those examples). Just when agreeing work with people make it clear you do this as a paid hobby, the timescale you can complete work in around your full time work, what service/good you'll give to them and the cost

Personal insurances won't cover anything where there has been the exchange of monies 

There is no such thing as a "paid hobby", as soon as money is involved its a business with the overheads that involves.

Sorry, bad phrasing, I meant public liability insurance but couldn't think of the name at the time. I.e. some insurance that protects the individual in case of fault in what they are providing. As with all insurances, different types of businesses will have very different risks associated with them.

NP... Home Contents insurance includes a PL type section (most SME PL sold in the UK is actually a blend of Public and Product Liability whereas Home obv doesnt have any product cover) which will cover many personal liabilities however only when in the capacity of a private individual and not in any business context.