Monthly Archives: December 2014

Q: When you you have to register as a business if your selling your hobby items…

Q: When you you have to register as a business if your selling your hobby items…

..when does it become recognised as a business not just a spare time hobby?

I was asked this great question in the open Q&A in the More Movement Hub and felt it would be a good question to share.

The way I understand it is that you need to register as self employed as soon as you start to earn money. Even if it is just a hobby income. If you do not actually make a profit, but are trying, then you still need to register but you would not pay tax (as you made no profit!)

To decide if you have crossed the line into being a business then you need to ask these two questions:

  • Are you aiming to make a profit from your sales i.e. selling for more than cost of materials?
  • Are you advertising your items for sale?

If you answer Yes to either then you have moved from a hobby to a business so will need to register with HMRC here . 

If you need more clarification then there is a great guide here

Once you have started trading you are required to  register as self-employed ASAP but definitely within 3 months of the end of your first month of trading. If you fail to do this you will be fined £100 :-/