bourbon
Established Member
An accountant (if they are any good), should be able to recoup the cost of employing them. If they aren't doing that, they aren't doing their job properly!
powertools":llgbta4t said:That's fine but tell me which reply to this thread has given accurate advice.
You could be classed as a trader if you sell goods or services. If you’re trading, you’re self-employed.
You’re likely to be trading if you:
sell regularly to make a profit
make items to sell for profit
sell online, at car boot sales or through classified adverts on a regular basis
earn commission from selling goods for other people
are paid for a service you provide
You’re probably not trading if you sell some unwanted items occasionally or you don’t plan to make a profit. You can’t use any losses you make as part of a hobby to reduce your tax bill.
--Tom--":1pigahe0 said:You could be classed as a trader if you sell goods or services. If you’re trading, you’re self-employed.
You’re likely to be trading if you:
sell regularly to make a profit
make items to sell for profit
sell online, at car boot sales or through classified adverts on a regular basis
earn commission from selling goods for other people
are paid for a service you provide
You’re probably not trading if you sell some unwanted items occasionally or you don’t plan to make a profit. You can’t use any losses you make as part of a hobby to reduce your tax bill.
custard":33rhpu4i said:It's surprising this question doesn't crop up more often. It's extremely difficult to make a viable living as an independent furniture maker, but it's not that hard to make hobby woodworking pay for itself, and even a bit more besides. And yet there doesn't seem to be many, on this forum at least, who are aiming in that direction?
This isn't correct. As a sole trader, if your turnover is less that 150k you can use cash basis accounting in which expenditure on equipment is an allowable expense. From HMRC website:profchris":2wucjhnv said:There is quite a lot of incorrect information here. And setting out to challenge tax law is not for the faint hearted because HMRC is empowered to level substantial penalties in addition to claiming the tax.
1. Income in the form of profits from running a business is taxable. As correctly stated, that is receipts minus taxable expenses. Cost of wood, consumables (glue, screws, finishes etc). Tools are in theory capital expenditure and you can only claim depreciation in calculating profits. In practice HMRC will not notice small costs, but big machines ...
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