anyone making money from hobby

[cobcorsa]

just curious if anybody on here who dose mig welding/spraypainting/sandblasting etc as a hobby dose a few jobs here and there to make a few bob on the side, it would seem like a good way to pay off the tools

 

[Wedg1e]

I always seem to end up doing jobs as favours, maybe involving a couple of beers but nothing fiscal.

 

[cumbriasteve]

I am certain no member of this forum ever makes any 'money on the side'...like our upstanding elected Ministers, we would hate to 'fiddle' the system.

 

[Tiggy_dorset]

hopefully still kinda on-topic....taking money on the side by law from little jobs, you should be paying tax on, in theory could you accept donations without the need to pay tax? Technically you are not charging for the work?

 

[cumbriasteve]

hopefully still kinda on-topic....taking money on the side by law from little jobs, you should be paying tax on, in theory could you accept donations without the need to pay tax? Technically you are not charging for the work?

Afraid it does not work, HMRC see anything from a packet of fags to a sack of spuds as payment and would tax you on the value.

 

[chunkolini]

I started off doing this, making a few small bits of sculpture to pay for the cost of it, a kind of self financing hobby.
Started off ok, then got out of control and became a fulltime occupation.
regards cash and taxes.
I remember looking into this several years back, and I think you are allowed to turn over a reasonable figure (cant remember what) before it becomes the business of the Inland Revenue people. I think the theory is thay cane be bothered chasing people for peanuts.

Chunko'.

 

[cumbriasteve]

I think years ago a 'blind eye' was taken, it's all changed now though, by law if you provide a service or make an item for any sort of payment in money or kind then you are a business and must register within 6 months of beginning the service or be fined £100 and have the privelige of HMRC 'estimating' how much you owe them.

It came about because HMRC realised how much money was being lost to garden shed enterprises, they even have a dedicated Ebay team now looking at sales.

When I retired I discussed the 'retirement hobby making a few shillings thing' and they soon made it clear.

Even if you only made one gate in a year and got £20 backhander for it, sticking to the law you are supposed to inform them of the additional earnings in your tax return.

What catches most people out is not the tax man himself but the neighbour or jealous friend reporting them.

 

[Sean]

Occasionally i "take in" 2cvs for a bit of work, I dont make big bucks or plan to, just enough to make my hobby and racing self financing. Trip to the 24hr race at Snetterton and a World meeting every 2 years-Check Republic 4 yrs ago - France this summer.

last one was a scunner "just a fog light and an mot" had the thing practically re built like George"Gasmark5"s have taken on the restorations for a Friend in Glasgow

 

[rtbcomp]

You do have to declare your casual earnings for tax, but don't forget you can claim costs against tax. It's only the profit, not the turnover, that's taxed.

You could also fall foul of planning laws.

 

[Sean]

You do have to declare your casual earnings for tax, but don't forget you can claim costs against tax. It's only the profit, not the turnover, that's taxed.

You could also fall foul of planning laws.

Yup - all of that
doing re chassis in a proper garage paid as a contracted worker

self employed so taxable income generated is added in to SA form.

 

[CompoSimmonite]

I think years ago a 'blind eye' was taken, it's all changed now though, by law if you provide a service or make an item for any sort of payment in money or kind then you are a business and must register within 6 months of beginning the service or be fined £100 and have the privelige of HMRC 'estimating' how much you owe them.

It came about because HMRC realised how much money was being lost to garden shed enterprises, they even have a dedicated Ebay team now looking at sales.

When I retired I discussed the 'retirement hobby making a few shillings thing' and they soon made it clear.

Even if you only made one gate in a year and got £20 backhander for it, sticking to the law you are supposed to inform them of the additional earnings in your tax return.

What catches most people out is not the tax man himself but the neighbour or jealous friend reporting them.

100% correct.

Paul Humphries (retired Revenue Officer for H M Imspector of Taxes )

 

[rtbcomp]

You can always reduce your tax bill bill by taking the inspector out to dinner - allegedly.

 

[Punx0r]

I'd assumed before that you'd only need to declare anything if you made a profit?

Or is it the case that you're still supposed to register as a business and then submit a zero return?

I tried making and selling a few items, but didn't break even in the end. Small sums, though.

 

[rtbcomp]

You have to tell HMRC that you are running a business, regardless of profit/loss.

You have to declare any business income (even if it's zero) on your tax return, and you can claim expenses. The profit is calculated from what you declare, you don't declare your profit per se.

 

[brightspark]

I'd assumed before that you'd only need to declare anything if you made a profit?

Or is it the case that you're still supposed to register as a business and then submit a zero return?

I tried making and selling a few items, but didn't break even in the end. Small sums, though.

if its a part time buisness and your working full time u dont need to register anything. just keep records of your expenses. income and outgoings .and at tax year end submit the tax return and they will calculate it for u i ran a part time hire buisness and shotblasting as well

 

[breezer]

So if I declared that I'd made a loss from doing jobs on the side / favours for people (after taking off expenses etc) would that reduce my PAYE contributions for the following year?

 

[stuvy]

So if I declared that I'd made a loss from doing jobs on the side / favours for people (after taking off expenses etc) would that reduce my PAYE contributions for the following year?

Give your local HMRC office a ring youl find that they are normal fire breathing dragons

 

[rtbcomp]

So if I declared that I'd made a loss from doing jobs on the side / favours for people (after taking off expenses etc) would that reduce my PAYE contributions for the following year?

That's getting a bit deep. As Stuvy says ask HMRC. They'd need to know that you are serious about the business and not trying to reduce your tax.

You can normally carry forward losses from one year to the next, but I'm not sure if you can do that to reduce PAYE.

 

[Punx0r]

if its a part time buisness and your working full time u dont need to register anything. just keep records of your expenses. income and outgoings .and at tax year end submit the tax return and they will calculate it for u i ran a part time hire buisness and shotblasting as well

Thanks. I can't remember if it was during a full time job or between jobs. I'm PAYE all the way.

Total turnover was only a few hundred, and I kept records in case it went anywhere. Was just wondering if they're actually bothered by examples like that, or it wouldn't be worth their time (what with nothing being due).

 

[neilarmo]

Surely initial start up costs (welder, grinder, compressor miscellaneous tools etc.) would mean it would be a long time before you paid any extra tax. The revenue don't expect instant profit, they just want blood when you do make a bit
Who here doesn't spend more than the make from outside work when they first start?

N