Folksy Ltd

Tax returns and becoming self employed etc confusing!

(Sophys Crafty Bitsn Bobs) #1

heya i have heard that i should inform the “tax man” about my sales etc and should register as self emplyoed, its not often that i make a sale but i do have my products in various places ie in shop i use to work at on sale or return and also on here and facebook…
anyone able to give me some advice on what i should do…?

(Grimm Exhibition) #2

Contact the Inland Revenue and tell them what you do and they will inform you of what type of form youl need to fill in.

(Sophys Crafty Bitsn Bobs) #3

will try that thanks :slight_smile:

(Brenda Cumming) #4

You definitely have to tell the tax man. EVEN if you don’t make a profit you have to tell them. I had a friend who was a tax inspector and she told me that you must declare any earnings or even non earnings and they will always believe you, whereas, even if you don’t earn anything, if someone reports you, they will never trust what you say…just the way it is…
The tax office are really helpful as long as you are honest with them.
I am not sure but I think that Folksy could be required to give the tax office any names and addresses of any of us. …not worth taking a risk.

(Lizzie Gillum, Bedfordshire, Uk ) #5

Hi Sophy,

anyone who is “trading” should register with the Inland Revenue / HMRC. They will send you a “Self Assessment” tax return at the end of each tax year. You can register to file this online, or you can fill it in on paper and post it to them. If you are making few sales etc, you will not have much to put on it. Just keep receipts for purchases of materials, packaging etc and for postage, then keep copies of invoices/ receipts from your sales, plus any other relevant documents.

The simplest way to work out your tax/fill in your form, is to add up all your Expenditure (purchases, postage, other relevant expenses) and put that in the expenditure box, then add your Income (sales and any other income from your business) and put in the correct box(es). If you’ve made a profit, it will come out as a plus amount, if a loss, it’ll be a negative figure. Either way, you file the tax return. If you file online, it will calculate any tax that you owe (or refunds due) and tell you straight away; if you post it, the tax office will send you a calculation in the post.

It isn’t very complicated for a small business with few sales, though the registration seems a bit daunting. You must register though, so might as well bite the bullet and do so!
This may help: HMRC - Tax Returns