Many people will have hobbies they do as leisure activities, which begin to make them some money; for example, buying and selling online, or setting up stalls at local markets and car boot sales.
However, if you establish a regular pattern of making money in this way which exceeds your actual costs, you probably need to consider whether your hobby is a business that you need to declare to HM Revenue and Customs (HMRC).
HMRC follow a number of guidelines called ‘The Badges of Trade’ that help them reach a conclusion on whether an activity is a part-time hobby creating an income stream or a business that needs to be declared on an annual self-assessment tax return.
As there are many criteria to be taken into account, please call us on 01275 390596 if you are concerned your hobby may be considered a trade. We can then help you investigate and support you with any further help you may need.