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 :-/

 

 

Leave a reply

More in CREATE Your Way To Success
How to set up Google Analytics

Ar you paying or working at getting people to visit your site? If so then you MUST be tracking the...

Close