Illuminare & Clarice Beads Tutorial - Now Available at EJR Beads!
Now on Tax, I've found out that you don't need to pay VAT unless and until you are earning £81,000 per year, I got that from here: https://www.gov.uk/vat-registration and on Income Tax: https://www.gov.uk/income-tax-rates I understand from there that most people's allowance is £10,000 per year, but note that this says 'Most People' not ALL People, you'd probably have to search further to find out who the others are...It seems that some state benefits are taxable too.I know that my husband's Army pension is taxable, but that's just because he's still working, once he retires that Army pension will no longer be taxable. So it's ruddy hard to work all this out.
It does seem to infer hobbyists that "don't intend to make a profit" can sell from time to time. But set yourself up a ebay /etsy store or sell at craft fairs and they'd have a hard time believing you don't intend to make a profit I expect - even when we all know we very often cant make one if we try!Selling the odd bit to friends and family is one thing. Selling to strangers and you are in a whole other ball game. Whether you intend to make a profit or not - you're still obliged to adhere to the various trading laws and would still be liable in that regard.
Well I did make sure to use one single method of payment when buying tools and supplies, so I at least know the outgoings from that perspective. So otherwise it's best to sign up for tax etc even if you know you'll probably never earn enough to pay it... okay.
So how about claiming stuff against tax? My accountant said that you can only claim for supplies when you sell something, then you can claim a percentage that appertains to what you sold. Until that point they are not claimable. I think that was the gist anyway. I guess you have to have a worked out percentage that you can say is materials or consumables, and the revenue have to ok that percentage. Tools and machines etc I think you can claim for.I was registered for vat for a while in order to get vat back off computer stuff. it was a pain.
So... basically you list outgoings; cost of tools, clay, mica etc, and sales (if any) and when the year ends and a new one begins you begin with a huge loss (cost of all those tools etc)... especially if you open for business in... december, when you'd expect most sales to occur, then the next year will probably have less outgoings, or at least you won't need another roller or extruder...