Heard on the news earlier today of someone selling on Ebay and not registering their business has been fined.
I hope everyone on here is registered with HMRC, it’s easy to do, even if you make a loss, you still have to fill in the self assessment form. Marg. x
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I was making no profit at all for a couple of years on here and didn’t realise I had to register even though I’ll never earn enough to have to pay tax (even more so now that the threshold has risen). It was only a thread on the forum that made me realise that I should…It’s quite easy to fill in the online form as my finances are quite simple (and small…)! Thank goodness I’m not successful, I really don’t understand money!..
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Good point Marg. It’s really easy to set up a shop online now, or get a website, or sell via Facebook and think you can earn a bit of pocket money or a second income. But there is a lot to know about the Distance Selling rules, registering with HMRC for self assessment, Copyright rules, and lots of other stuff that just crops up as you go along. It’s a bit of a minefield and it really is worth researching what you’re doing and whether you’re within the rules. Or to ask on a forum like this for advice. Which is where I learnt a lot from when I first started.
Jo
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I had a nice suprise at the end of my tax year, I received a cheque for the tax on interest that I had paid on an investment that had matured, so it’s really is worth registering. If you keep a note of all your sales and purchases it’s easy to fill the form in on line, although I always print copies off first and fill them in and then go online. The staff are really helpful when you ring them up and there are lots of guidelines. Marg. x
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I had the same thing I got a wee refund due to paying tax on my overseas investments.
I wouldn’t have received it if I hadn’t registered
Small refund for me too 
Yes, i was told even if you make and sell with the intention to make a profit you have to tell the tax office. I have been self employed now for 2 years +, work also as employed. Really want to be self employed only but not making sales regularly to live off. Maybe one day - i like to dream
Hi all,
I started up my shop about a fortnight ago (yet to sell anything). Do you think I have to register already?
I’m employed full time too and have to pay taxes on my earnings through that. Do any of you know how much you have to earn through sales here before paying tax if already employed?
Thanks,
Jennie.
P.S. Thanks for this post Marg, I hadn’t really thought about this before.
A very good topic raised.
I only sell here at the moment, and sales aren’t huge, I’m definitely not seeing any profits at the moment, but disregarding that I’m fully registered with HMRC.
I want to start as I mean to go on and abiding by the law is a good place to start.
I enjoy book keeping so that side of it hasn’t being complicated at all.
I did have some help from my Husband though when filling in my online self assessment.
You have to remember they aren’t the big bad wolf, its a two way partnership and as others have mentioned they ocassionally refund you. 
Karen
As sound as you open yes you have to register doesn’t matter if you are in profit or loss situation.
If you are working full time than yes you have to register your shop as well as be registered by your employers paye system.
Same as if you take in a lodger or have a second home and rent it out and still work full time for a company.
Keep records of all your outgoings as well as your sales. Most of us don’t make a profit at the start. If you are already employed you might even get some money back from the taxman 
Jennie @TheMeadsCraftHouse. Ring HMRC as soon as you can, explain your position. I think on the self assessment form there is a section for your employment and how much tax you have paid. I started my business at the beginning of the tax year to make it simpler. If you begin mid tax year that’s OK also. I think you would have to declare your PAYE earnings and the tax you have paid (from your P60), but not sure as I am now retired and so it’s different for me i.e. I have to declare all my pensions and the tax I have paid on them. As has been said, keep good records of sale, purchases, fees paid, postage and packing. I went on a course after I registered that was very informative, I didn’t think I could claim for any of my home expenses but I do now, just a little bit but it all counts towards your expenses. Marg. x
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Thanks for this thread… Must get myself organised and do this!
Teresa x
Hi Marg, I started my shop a couple of years ago but only sold my first item (1 of 6 ) last year. I hadn’t realized that I needed to register with HMRC as I didn’t buy my wool in order to make in order to sell origionally, it’s what I had left over after making items for friends and family. I have looked on their site but not sure what I have to do as I am now retired, will I have to pay NI contributions. Its so confusing, I want to do the right thing but can’t make out what forms I am supposed to fill in. Help from anyone would be much appreciated
Denise, it would probably be easier just to phone HMRC and speak to the newly self employed helpline. Number and opening times - http://search.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=1JNuf06zzrM
This is the info on being self employed after retirement which might be the bit you were trying to make sense of, but if it’s not it might help a bit before you ring - http://www.hmrc.gov.uk/pensioners/paying-se.htm - it looks like you only pay Class 4 NI on any profit you make, but best to ring to find out what that actually means to you.
Jo
Hi Jo, thanks for replying so quickly. Much appreciated. Will check this out tomorrow before I ring them. I have left my shop in holiday mode until i can sort this out. (also allows me time to get a few more items ready for sale).
I am going to move this thread to the Shop Talk forum, because I think it is quite important that more people take notice of registering with HMRC.
Ha - need to put my other hat on to change it! LOL
Shirley x
Now I can move it! I don’t have enough badges with my other shop to do it. LOL
Shirley x
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Denise @crafts by Evelyn. I am retired so don’t pay any N.I. stamps. I also used stock that I had bought previous to my starting my business two tax years ago. I made an assessment of the value and put that in my accounts book as stock in hand, which then was added to the stock I bought during the year. I hope you find out some information from HMRC. they were very helpful. I have put my shop in “hidden” as I am not able to sell at the moment. But I will still have to fill a tax form in April next year to account for the bit I sold in May. Don’t forget to add a little in your expenses for electricity, use of your computer, i.e. a portion of your broadband costs and travel if you use your car to take your parcels to the post office. HMRC will also tell you which leaflets you need to look at for your particular situation. Marg. x
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I am lucky enough to have a friend who works as an accountant and does my forms for me. He always asks me to write down how many miles I have driven to the post office and all items I have bought, as well as use of the pc and electricity. Luckily, as a pensioner I don’t have to worry about NI stamps and I am so gratefrul for the help of my friend…My accountant told me that “sometimes” if I consistently don’t meet the profit levels for tax (doubt if I ever will), then the tax office “might” let me know that I no longer need to fill in the forms…I have a very low pension, so even with my sales, I rarely earn more than a total of £4k so unless someone wants to pay me £1m for one of my paintings…I think I will always be tax free…lol.
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