Wednesday, 23 May 2012

Tax and all that stuff

Greetings,

Now that my Etsy shop is finally open, I thought I'd better look into the tax situation.  I'm not expecting to get rich but  don't want to upset Her Majestys Little Helpers either !

It seems that as a pensioner in receipt of just the state pension, I don't have to pay tax until my 'earnings' reach £10,500, (including pension) which is good news but I don't think I'll have to worry too much about that for a while !  If you have an extra private pension however you would reach that limit sooner (if you are not in receipt of it already) so the taxman will knock on your door very soon.


I've been advised to go 'self cert' which means I still have to declare any earnings I may get but don't have to register as a business.  There's lots of allowances and expenses to offset paying too much tax anyway, so best to keep it all legal and above board, I don't want to get in trouble with the powers that be.

Here is a great link from  UK Handmade that discusses this very situation, it's very helpful and easy to understand.    http://ukhandmade.co.uk/content/business-navigating-road-hobby-small-business-tax

take care peeps .............



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