eBay and Etsy Side hustle tax

Grumpy_chap

I think with this, and their other thread about pensions contributions, the OP could do well to engage the professional paid for advice of an Accountant.

MetaPhysical

Grumpy_chap said:

I think with this, and their other thread about pensions contributions, the OP could do well to engage the professional paid for advice of an Accountant.

Thanks but nah.  I get it now.  Got to learn this stuff for yourself, which I have done thanks to the forum.  Done my own tax returns for 20 years but only just become a 100k+ earner and so needed to acquaint myself with the [considerable] intricacies and exposures to marginal rates.

Hoenir

MetaPhysical said:

My fiancee has been running a small high volume low margin business on eBay and Etsy where she makes about £5000ish per year in profit.  Clearly, this is above the £1000 sole trader allowance and so she needs to declare this on a tax return.  I'd have thought that HMRC would have bigger fish to fry but there you go.....  

We would all like not to pay income tax. Not how the world works though. Public services need to be paid for. What's income tax got to do with the VAT threshold? 

MetaPhysical

Hoenir said:

MetaPhysical said:

My fiancee has been running a small high volume low margin business on eBay and Etsy where she makes about £5000ish per year in profit.  Clearly, this is above the £1000 sole trader allowance and so she needs to declare this on a tax return.  I'd have thought that HMRC would have bigger fish to fry but there you go.....  

We would all like not to pay income tax. Not how the world works though. Public services need to be paid for. What's income tax got to do with the VAT threshold? 

Indeed, I pay plenty of tax and happy to do so, not at 60% though.
I am an engineer not an accountant so I was asking a few questions about a few topics now we are approaching the end of the tax year.  Accepted, everyone helps on best efforts and in good faith.  That's what makes forums like this so valuable to learn from.  If we were all "experts" there'd be no need for forums such as this, would there, where people can ask questions and learn?  But we aren't and many of us use these resources to ask questions and learn from those more experienced in financial matters.

Jeremy535897

I suggest you read the LITRG guide on self employment:
https://www.litrg.org.uk/working/self-employment/self-employment-guide

InMyDreams

[Deleted User] said: 

You are really not getting this!

Do you want to claim £1000 worth of expenses as a deduction against profits or do you want to claim the actual expenses (if more than £1000)?

That’s it! No £200 cash refund! No £1000 cash refund! Just a shortcut.

To be fair to the OP, their opening post already made it clear that trading allowance wasn’t appropriate for them - £5000 *profit* (not just revenue) in a high volume, low margin business means cost of sales alone are clearly more than £1000 before you even get to printing, stationary, postage, travel and other expenses.

I’m not surprised that even just asking this question therefore confused them to start with.