Accounts

[robhil]

Not sure if this is the correct place to post this, please move it if it isn't.

I started messing with dye sub about 12 mths ago, have done a few keyrings, baubles, coasters etc.

I was at a artist fair in my local town and spoke to a artist about supplying coasters with her prints on, she seemed keen and ordered 128 coasters, then another 80 and now another 128 all this within a 3 week period.

I am thinking now that I ought to register this as a small business.

I have a full time job but don't want to have any trouble re: Tax etc.

Could I also claim for electric/ heating/broadband etc. for home as that is where I run this from.

Just wondering where to start.

any help would be appreciated.

[viccar1]

In the eyes of HMRC if you buy or make goods with the intention of selling then you should register as a business, its quick and easy to register.
You would be able to put your costs down, but not claim as such as you would not be VAT, you would only be allowed to put a small amount of elec, phone ect a % of what you would use for business from your household bills. Simplified expenses are here https://www.gov.uk/simpler-income-ta...king-from-home

[webtrekker]

You should really register within the first 3 months (I think) of starting up. April 6th is probably the best date to start your accounting period from, particularly if you are planning on doing your own accounts and submitting your own self-assessment, as it just makes things simpler. Remember that, although your tax will be due in April at the end of any tax year, you still have until the following January 31st. to submit your assessment and pay the tax owed.

[GoonerGary]

A little information here:

https://www.theguardian.com/small-bu...elf-assessment

https://www.theguardian.com/money/20...-entrepreneurs

[Customprintwales]

Not sure if the simplified allowance is suitable for sublimation due to the amount of electricity you use.

Get a smart meter or if not there are gadgets you can get from your electricity supplier that give real time usage.

I've got a gadget from British Gas, I record the readings when I start work and when I finish for the day.

The actual usage is substantially more than under the simplified allowance scheme.

[logobear]

I suggest you think VERY strongly before charging elec, rent etc to your micro business.
It can effect your council tax, - and mean that part of your house is subject to non domestic business rates.
It can invalidate your mortgage and home insurance etc too.

YES - you should declare to HMR&C by doing self assessment .. but its just a case of taking inputs off sales ...more or less.
If you drive to any events, you can probably 'charge' yourself 48p per mile for use of your own car, straight deduction.
Wait until you are selling thousands of quid of stuff before trying to shave a few quid off for elec/power etc
You would have broadband anyhow .....
imho

[Customprintwales]

I suggest you think VERY strongly before charging elec, rent etc to your micro business.
It can effect your council tax, - and mean that part of your house is subject to non domestic business rates.
It can invalidate your mortgage and home insurance etc too.

It does not matter if you use actual amounts, simplified scheme or don't set anything against your accounts. It's not the accounting set up that impacts mortgages, insurance, council tax etc, it's running a business from home.


So even if you don't charge anything against you business you should still inform your mortgage company, landlord, insurance, local council etc that you are running a home business.

[logobear]

Re CustomPrintsWales.
having a home office doesn't normally need advising mortgage company, landlord, insurance, local council etc

BUT - having a custom making factory is a different matter - unless it's a 'hobby'