Carving hobby is it a small business??

[abercarver]

Hello all

 

First of all im new to the forum so just a to say 'hi'

 

Iv been carving now for just 4 months and making mushrooms left right and centre.

 

Iv mainly been selling to friends and family but am thinking of selling locally and just see what happens from there.

 

I did some research and found out i need to declare this to HMRC as self employed, even though i have a full timer job too.

 

Has anyone else gone down this road and could help with advice or guidance.

 

Many Thanks....

 

....and hope to talk more and more in the future

[dervishcarving]

Hi

welcome to the forum

where are you based?

 

if you earn money from carving then yes, you should declare it but not as self employed i dont think. you just have to submit a self assessment tax return at the end of the financial year

[abercarver]

Hello,

 

Im based just outside Lichfield in Staffordshire.

 

Having done a little more research your right as my earnings are very minimal and aren't my sole income.

 

I was going to post a few of my pics to see what people think.

[lyons e]

Hi and welcome to forum , there seems to be a lot leaving stump about 5f in high, after having trees down and have carved, down. Here in hemal ,seen 5 in the last week so there definitely business there , I guess it depends on how well u get known

 

 

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[dervishcarving]

Im in the same situation. I have a full time job and carve as a hobby. Mainly I do community-projects (free) for schools, playgroups and community sites. The private commissions i do tend to cover my expenses for the community work so i dont make a profit. If you do make a profit, just declare it and you are fine. The payback from the community stuff is seeing people who couldnt afford to get a private commission getting to enjoy my work and the 'doing a good thing' feeling. Oh, and if you make sure people know its your work then you might get a sale out of it too

[abercarver]

Right on Lyons! and many thanks

[agg221]

Make sure you keep a record of your costs. Chainsaws, chains, bars, oil, fuel, ppe, wood, travel to meet customers (get a few business miles added to your car if you haven't already got it, doesn't cost much), travel to pick up wood, travel to drop off carvings, entry costs for relevant shows/events as research and training trips and any you exhibit at. There is an allowable cost per mile, which was 41p last time I looked.

 

You will soon find that your expenses are taking out a lot of your profit, possibly enough for it to come into the 'hobby' bracket, rather than genuinely be profitable. Beekeepers who sell a bit of honey often achieve this. At this point, you no longer have to declare it. If you still make a profit, declare it but at least it will be the real profit, so you won't pay twice for external costs.

 

Alec

[splinters]

Bugger the HMRC tey rob us enough without taking extra money off you. i started off selling my carvings at carboot sales and what is the difference in the money i was making selling crvings and the person next to me selling their junk. i dont do carboots sales now because im so busy with commisions i dont declair it as its a hobby that covers its costs and a bit more.

 

a friend of mine makes and sells kids hair clips and bows and she got a visit from hmrc and they said as she i only ran i on a small scale the wernt interested in persuing her for tax. so i say dont bother declairing it until someone comes asking.

[abercarver]

Splinters:

 

How did you get on at Car boot sales?

 

Was thinking of doing some but people always want stuff dirt cheap?

 

Thanks for all your feed back guys, iv keep account of everything and I was surprised that lots of outgoings mean tiny tiny profits