Is anyone out there an accountant or a tax man!?
I have just started making costume jewellery as a hobby and was thinking of selling it on ebay and the like. As it is only a hobby do i still have to declare it to the tax man. By the time I have taken materials, petrol for getting materials and my time out of any selling price I dont think there will be anything left but I know the government are clamping down on ebayers and I dont want to get in trouble. Thanks
United Kingdom - 12 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Any profit i.e. total income - expenditure should be declared for tax purposes.
Answer 2 :
I'm not, but my friend, Nick Smith IS! You can contact him at nick1in@yahoo.com GOOD LUCK!!!!!
Answer 3 :
If you keep up with your expenses and sales and you show that you did not make a profit than you may get a tax break. the IRS by rule of thumb does not expect a business to make a profit until at least the third year in business. So unless you are making a large amount of money I wouldn't worry about reporting it. It is classified as a hobby. Go to irs.gov for more answers. hope this helps
Answer 4 :
YUP! You are suppose to declare ALL income. That includes the $20 bill you found on the sidewalk. You take your income and deduct your expenses. What's left is the net income that is declared.
Answer 5 :
I am the tax man Yes if you are self employed, you need to declare that, if this is your only source of income and it remains under the taxable limit after expenditure, you should be ok. My advice........Let the tax man know, by what you have said things will remain hunky dorey until your business takes off and you become a millionaire!!
Answer 6 :
Techically you should file a schedule C Business Income....you will be able to deduct all your expenses of gross receipts and if you have a bad year you can claim the loss thus reducing tax liability.
Answer 7 :
Ebay is a grey area where the taxman is concerned.. if you're selling odd bits here and there, i.e. your telly or your ipod that's fine and you don't have to declare it. however, if the Revenue believe that it's becoming a "trade" they'll start getting suspicious.. To be on the safe side, i would qdvise you to declare it, especially if you don't think you'll be making much by way of profits.. you probably won't have much, if any, tax to pay.
Answer 8 :
The bit is that your time is not a tax deduction and is actually your profit. So that is the basis of your taxable income. The difference between a hobby and trading is largely a matter of intention and the frequency of the transactions. So, if you are making the items with the intent of selling them at a profit and you are doing this on a regular basis, you are trading. It doesn't matter if you are selling on e-bay, from a market stall or from a shop.
Answer 9 :
I endorse what Jacsea says. The other thing to bear in mind is that if you are making a loss and have other income which is taxed, you can set the loss off against your other taxable income and receive a tax refund!
Answer 10 :
I'm glad I don't work for H&R Block. The difference between a hobby and a business (ignoring the "badges of trade") is that a hobby never makes a profit. If it does it's a business. Keep proper records, and if you make a profit, declare it to HMRC. Don't forget that if it's a business you MUST register with HMRC within 90 days to avoid a penalty.
Answer 11 :
You can register as a self-employed. As long as you do not make profits or make profits that are less then personal allowance (this year it was £5035) you will not pay any tax. The only payments you will make would be national ins contributions around £2.10/week (if you predict you will not make any profits you might not even pay this). Check here http://www.biuro.co.uk/index.php?p=fq&act=sh&id=45
Answer 12 :
Basically, if you are selling items on a regular basis for money then the Inland Revenue will deem that you are carry out a trade with the intention of making a profit. The fact that you do not think you will be making much in the way of net profit is neither here nor there. Any profit you make will be deemed to be trading profit and is liable to tax in the same way as if you had set up a stall in a market or were running your own jewellery shop. Be careful because the Inland Revenue are scrutinising ebay for those who are actually trading and if you do not declare your profits to HMC&E then this is tax evasion which is a serious crime. You have to realise that there is a distinction between those individuals who are making a one off sale and those who are selling regularly on ebay. For example, if I sell my car on ebay this will not fall under the definition of trading, however if I start selling several cars a week on ebay then the Inland Revenue will perceive me as being a car dealer and they will expect me to pay taxes on my profits.
Read more other entries :
Saturday, July 28, 2012
Saturday, July 14, 2012
Anybody know of any companies in London that offer Apprenticeships in Accountancy?
Anybody know of any companies in London that offer Apprenticeships in Accountancy?
I have A-levels in Accounting & IT, I am 24... I am looking for a place in London where I can work my way up as an accountant as they pay to get me qualified to eventually earn more money within the company... Do you think it's possible to be on £30,000 per annum within 3 years?? What places do you recommend in London?
Financial Services - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
No I do not think as a trainee you would get 30k in 3 years, you would not be qualified, and still have little experience. I suggest you google Accountants in London and send off your CV.
Read more other entries :
I have A-levels in Accounting & IT, I am 24... I am looking for a place in London where I can work my way up as an accountant as they pay to get me qualified to eventually earn more money within the company... Do you think it's possible to be on £30,000 per annum within 3 years?? What places do you recommend in London?
Financial Services - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
No I do not think as a trainee you would get 30k in 3 years, you would not be qualified, and still have little experience. I suggest you google Accountants in London and send off your CV.
Read more other entries :
Saturday, July 7, 2012
How long does it take to be qualified as an ACA? How much do they usually earn while training in the UK?
How long does it take to be qualified as an ACA? How much do they usually earn while training in the UK?
Being a non-EU citizen, Is it possible to get a training contract to be a chartered accountant in the UK after having received an award from a non-UK university? Do companies such as PWC or KPMG recruit foreign graduates? One more thing, when undergoing training, how much do they normally pay?
Higher Education (University +) - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
2 years. If you can try and get sponsored.
Read more other entries :
Being a non-EU citizen, Is it possible to get a training contract to be a chartered accountant in the UK after having received an award from a non-UK university? Do companies such as PWC or KPMG recruit foreign graduates? One more thing, when undergoing training, how much do they normally pay?
Higher Education (University +) - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
2 years. If you can try and get sponsored.
Read more other entries :
Sunday, July 1, 2012
Which Account book is best for those in the building trade?
Which Account book is best for those in the building trade?
Hi, my partner is planning on going self-employed. He is planning on hiring an accountant, however I think he should attempt doing his own accounts. Could anyone suggest a good accounts book (he is in the building trade)? Thank you
Small Business - 2 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
All Stationers have them. I used the Collins Cathedral Analysis book (red). They have all the seperate columns. I put income on one page and outgoings on the other. I did not use the computer as we used to have a lot of power cuts. He MUST use an accountant at some stage as they can save you a lot of money by claiming against the business for things you would have not thought of. Also he will need to have his yearly accounts audited to keep the tax man happy if ever he is investigated. Good Luck
Answer 2 :
The Collins Cathedral books are ideal, but Staples now do a paperback version that is far cheaper and just as good. Check how many columns you need before buying one - you will need at least 10 columns to cover: sub-contactors bank charges motor materials printing, stationery & advertising other purchases (eg services etc from other companies) wages (employees if you have them) your wages revenue & customs. Go for an Accountant, at least for the first year, or you will definitely loose out on the tax side of things. A good Accountant will show you exactly how to do the books, as well as explaining what you can allow against your tax. ie, did you know that there is an allowance for working from home? He will save you more than he costs.
Read more other entries :
Hi, my partner is planning on going self-employed. He is planning on hiring an accountant, however I think he should attempt doing his own accounts. Could anyone suggest a good accounts book (he is in the building trade)? Thank you
Small Business - 2 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
All Stationers have them. I used the Collins Cathedral Analysis book (red). They have all the seperate columns. I put income on one page and outgoings on the other. I did not use the computer as we used to have a lot of power cuts. He MUST use an accountant at some stage as they can save you a lot of money by claiming against the business for things you would have not thought of. Also he will need to have his yearly accounts audited to keep the tax man happy if ever he is investigated. Good Luck
Answer 2 :
The Collins Cathedral books are ideal, but Staples now do a paperback version that is far cheaper and just as good. Check how many columns you need before buying one - you will need at least 10 columns to cover: sub-contactors bank charges motor materials printing, stationery & advertising other purchases (eg services etc from other companies) wages (employees if you have them) your wages revenue & customs. Go for an Accountant, at least for the first year, or you will definitely loose out on the tax side of things. A good Accountant will show you exactly how to do the books, as well as explaining what you can allow against your tax. ie, did you know that there is an allowance for working from home? He will save you more than he costs.
Read more other entries :
Subscribe to:
Comments (Atom)