As I said above consult a professional or HMRC, I know as I am an accountant.
Freddies Dad the VAT registration is today £85,000 or more of turnover (unless it is VAT exempt turnover), we see all sorts of enquiries by HMRC. They also trawl EBAY at times to identify sellers, as they do with the land registry to identify owners who might not be declaring rent. Plus how do you know you haven’t sold to a tax inspector lol.
All income has to be declared if it’s small scale or not, if declared then you have nothing to worry about. Selling chattels on EBAY is a completely different thing unless you have a capital gain to declare.
If you register as self employed, or should do, beware that you have to pay National Insurance long before you start paying tax, don’t be lulled into the false sense of security that you are OK as long as your profits are below the tax free allowance they might still be above the level where National Insurance kicks in (depending on your age of course)
Some good advice, the most important of which is to see an accountant for a hopefully free initial consultation.
The crux is whether or not you're carrying on a business: selling unwanted CDs / excess plants on ebay isn't a business, selling the same thing repeatedly with a view to making a profit is. Yours sounds more like the latter I'm afraid, so you will likely need to pay tax (Income tax) on your profits. I'd worry about VAT later really (you only need to register at £85?k, there's no min limit for Income tax), but if you see an accountant they'll go through the pluses and minuses of VAT reg.
I believe there's a £1000 limit on "hobby" income, and I think you could argue you're doing it for a hobby as you're working from a little allotment rather than a farm (someone confirm this? I can't find the link I saw it at anymore)
You're supposed to pay income tax on top of your other job (if any?), you can do that with this salary tool. However, if you keep track of every receipt/expenditure then you'll get away with not paying tax, because I can almost guarantee you won't be making profit with all your costs - getting there, allotment fees, basically everything including the plants you can claim reduce profit.
As other have suggested, it's always worth contacting HMRC or an accountant.
A little late to this discussion but can I just point out that your ‘taxable income’ (and it does need to be added together if there’s more than one source) isn’t just about income from employment.
It also includes pensions (both state and private) and income from other sources.
Definitely wise to get proper advice and essential to keep full records.
Heaven is ... sitting in the garden with a G&T and a cat while watching the sun go down
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Freddies Dad the VAT registration is today £85,000 or more of turnover (unless it is VAT exempt turnover), we see all sorts of enquiries by HMRC. They also trawl EBAY at times to identify sellers, as they do with the land registry to identify owners who might not be declaring rent. Plus how do you know you haven’t sold to a tax inspector lol.
All income has to be declared if it’s small scale or not, if declared then you have nothing to worry about. Selling chattels on EBAY is a completely different thing unless you have a capital gain to declare.
If you register as self employed, or should do, beware that you have to pay National Insurance long before you start paying tax, don’t be lulled into the false sense of security that you are OK as long as your profits are below the tax free allowance they might still be above the level where National Insurance kicks in (depending on your age of course)
Cheers,
The crux is whether or not you're carrying on a business: selling unwanted CDs / excess plants on ebay isn't a business, selling the same thing repeatedly with a view to making a profit is. Yours sounds more like the latter I'm afraid, so you will likely need to pay tax (Income tax) on your profits. I'd worry about VAT later really (you only need to register at £85?k, there's no min limit for Income tax), but if you see an accountant they'll go through the pluses and minuses of VAT reg.
You're supposed to pay income tax on top of your other job (if any?), you can do that with this salary tool. However, if you keep track of every receipt/expenditure then you'll get away with not paying tax, because I can almost guarantee you won't be making profit with all your costs - getting there, allotment fees, basically everything including the plants you can claim reduce profit.
As other have suggested, it's always worth contacting HMRC or an accountant.
It also includes pensions (both state and private) and income from other sources.
Definitely wise to get proper advice and essential to keep full records.