Many people will have hobbies they do for leisure, which they have started to make some money from. For example, buying and selling online or setting up stalls at local markets, car boot sales etc
However, if you establish a regular pattern of making money in this way, which exceeds your actual costs, you probably need to consider if your hobby is a business that you need to declare to HM Revenue and Customs (HMRC).
HMRC follows a number of guidelines called “the badges of trade” that help them reach a conclusion: is it a part-time hobby, that creates an income stream or a business that needs to be declared on an annual tax return?
As there are many criteria to be taken into account, please call us on 0800 0523 555 if you are concerned your hobby may be considered a trade, we can help you investigate and support you with any further help you may need.