tax and earning from props

[Alexfx]

im not sure if this is the right area of the site for this, but im not trying to earn anything from anyone here, im not selling or buying, im just after a little advice. basically to anyone in the uk, assuming the rules are different wherever you go, whats the deal with paying tax on sold items? do i have to pay tax if i sell something for a small profit? or is this the sort of thing that isnt worried about by the tax man?

i dont know if im explaining well enough, i have a job, it pays well enough, im paying tax on my earnings, im not technically self employed im freelance but im on contract and getting paid PAYE. ive made a few props in the past, and occasionally people want copies, if i sell these props on, should i be paying tax on them? and how? do i have to register as self employed? and will that not affect my current job status?

if anyone can clear this all up id be greatly apreciative!

cheers guys

 

[Moviefreak]

Not sure about in the UK, but in the states you are best to claim everything.
If it goes through Paypal and ends up in your bank....
That is a paper trail. Claim it. If they decide to audit you, they will pull all financial institution records and question ANY money that came in.
But on the flip side, since it generates an income you can write off a lot of prop making supplies and such.

 

[Birdie]

The black and white answer is that if you are making and selling something you are trading, therefore you may be liable to income tax:HM Revenue & Customs:Selling items online, through classified advertisements and at car boot sales - Income Tax

The grey answer is something only you and your individual circumstances can make a decision on. Some conversation on tax and ebay sales here:Do I have to pay tax on my eBay sales? Question of the week discussion - MoneySavingExpert.com Forums

 

[James Kenobi 1138]

Many places consider selling homemade items (props) to be a hobby and not a business and exempt you from having to pay taxes unless you make over a certain amount of money.

Also, if you bought something retail (a Hasbro lightsaber) and paid taxes when you purchased it you don't have to claim the income if you sell it and pay taxes on it again.

Always best to check with an expert in tax law in your area.