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Growing and selling plants - should I be concerned about tax?
chaning62
Posts: 1
Hi everyone 
I've spent the last few years growing more plants/produce than I will use and selling them locally - this year I plan on buying an allotment so I can grow more, as it's always very well received by everyone. However I'm concerned about tax on sales and if I should be paying them. All the money I get from this is going straight back into next years seeds, pots and everything else. I've tried to find information on sites like this income tax calculator but can't find much about tax on sales anywhere, so I was wondering if anyone here does something similar and knows more about it.
Hope to hear from someone soon
Amber C
I've spent the last few years growing more plants/produce than I will use and selling them locally - this year I plan on buying an allotment so I can grow more, as it's always very well received by everyone. However I'm concerned about tax on sales and if I should be paying them. All the money I get from this is going straight back into next years seeds, pots and everything else. I've tried to find information on sites like this income tax calculator but can't find much about tax on sales anywhere, so I was wondering if anyone here does something similar and knows more about it.Hope to hear from someone soon
Amber C
0
Posts
As has been said, if you already pay Income Tax, either PAYE or self-assessment, then you need to declare your profits on a Self-Assessment form. I've always found the Inland Revenue people very helpful as long as you make the first move ... if you hope they just won't find you out they're liable to search out every nook and cranny for undeclared income.
Gardening in Central Norfolk on improved gritty moraine over chalk ... free-draining.
You need to keep all the receipt from everything you buy, right down to a bag of plant labels, keep a note of everything you sell then take your expenditure off of the plant sale money and what’s left you pay tax on above your threshold limit which alters with age, you’ll need to look online to see yours.
Beware of advice on forums, for example above a suggestion is made to make an allowance for your time as an expense. As a self employed person you cannot do this under tax law as any payment to yoursef is out of profits made and you cannot have an expense deduction against profits that is also paid to yourself as income.
Your other income needs to be taken into consideration etc, etc, etc.
Even if you do not make enough to be taxed under self assessment in the U.K. you still have to declare it.
Sometimes you can get an agreement from HM Revenue & Customs that you you are doing it as a hobby and that there is never any profit, the money is ploughed back into your hobby. But this depends on each individual case.
One final time discuss this with a professional where they can assess your specific individual circumstances and advise accordingly.
Cheers,
I'd call them for up to date advice on your legal responsibilities rather than ask the good, well meaning folks on a gardening forum.
It's in their interest, and yours , to have the correct information. ( and it's free )
I'm aware of fully employed teachers, who sell the occasional painting at an annual Open Studios event being chased for tax on several years' worth of sales, as well as a person selling potted up cuttings, bags of rhubarb pots of jam and a few eggs a day from a gateway stall with an Honesty Box being chased as well. eBay sellers' records can and will also be accessed by HMRC
Keep records, fill in the forms and declare it all; HMRC will know you're on the level and you'll be able to sleep at night.
Gardening in Central Norfolk on improved gritty moraine over chalk ... free-draining.