Selling stuff online

I’ve been playing with the idea of selling some hand made stuff online. But I don’t know how to start.

 I’ve been reading about it but can’t really understand what I have to do. 

I work full time and I pay tax and insurance. 

So I’ll have to pay more tax but there’s also this £1000 trading allowance. 

It’s confusing. 

I understand that I would have to register as self employed and notify revenue about my income but I don’t know if I’m supposed to do it before I start or after I earn £1000 or when? 

I want to just put 1 or 2 thing online and see if anyone would buy it. 

If not I’ll abandon the idea. 

If someone buys it then I might sell more. 

But I don’t know if I have to inform tax office that I put one item on sale? And if it won’t sell? Notify them that it was a mistake?

Does someone know how to proceed?

  • Might Etsy be a good option for this? 
    i wouldn’t worry about any tax issues until you have actually tried to sell some of your items online - you might sell very few in which case it won’t be an issue. You only pay tax on the profits you make - and even if you sell quite a few items that won’t necessarily mean that you make a profit. How much money have you spent already on materials to make these items for example? 

    Keep detailed records of any cost or expenses you are incurring In producing your items - this can even included travel/petrol costs if you are having to travel to buy materials (at 40p per mile if you are driving in your car).  Then if you do sell items and need to work out your profits you’ll know what to deduct. Having detailed records will be very important if you do have to pay any taxes relating to this venture. 
    Good luck - I hope it goes well!

    just out of curiosity - what are you making? 

  • Just use a platform where people are selling similar hand made stuff, make a small advertisement of what you're doing, and just go for it. Also, you could make a website where you could advertise, add your products with prices, pictures, and other information, depending on how much stuff you are planning to sell. If you need a good website, I would recommend checking [link removed by moderator] they will make it not only to function as you want it to, but also with a good design which will be pleasant for all the customers.

  • Yeah, working with eBay has become easier than before. I also have good experience with Shopify because their attitude towards sellers is on another level compared with Amazon. Anyway, the biggest problem for me was to get new customers because I didn't know how to manage my shop well. I don't have money to hire marketing specialists or any managers, so I had to learn everything on my own. Lucky for me, I had eventually discovered the revenuegrid that offers salesforce software to improve sales. When you know your sales data in detail, it becomes easier to analyze everything.

  • I did the same thing years ago. Just try eBay in the beginning, and see how the things will go

  • It sounds like you make some really nice little things. I’m sure you would manage to sell a few pieces. I used to sell my hand sewn jewellery at the craft fairs several years ago but I wasn’t really covering my overheads so I just make jewellery as a hobby now, I’m working on my Christmas presents stash for 2019 already Slight smile

  • I knit, crochet, sew (a little), needle felt and make kind of fabric “sculptures” with fabric hardener. I’m not sure if any of it would sell though. 

  • My eldest daughter sells homemade jewellery on depop, it seems to be the trendy website at the moment, she just does it as a hobby, she seems to sell quite a lot of jewellery on it. Folksy is apparently quite good too. I used to use Etsy which targets the international market but unless you are prepared to pay extra to promote your online shop then I wouldn’t recommend Etsy. What handmade things do you make?

  • Ooops!meant to say...what 'type' of things,not 'ye' of things!

  • Hello @ Aurora.with no concern about tax,a good starting point is to consider what ye of things you enjoy making the most-could be that you like making a variety of items-make a list and then take some time to look at what other makers are producing in relation to the type of things you are interested in.I think the most important thing at this stage is to focus on the enjoyment of making process. When it comes to selling online-good images of your work will be important-always best to photograph your work in natural day light -take several photographs-close up detail,side view,front view...select the best images to use and provide a concise description-dimensions,materials...Have a look at what other folk do-consider what looks best and why-is there a way of presenting images that you like and think you could emulate in relation to the work you have produced.Be inspired,enjoy,have fun!

  • Hello,there is no tax situation to deal in relation to selling on unwanted items on ebay-people selling  items they own and no longer have any need /use for are at liberty to make a little profit /or loss from sales on sites such as eBay,No need to itemise anything in this situation, nothing to prove as there is no wrong doing.The difference occurs if you intend to run a small business-making items for profit .Many people start off making things such as jewellery,bags,cards as a hobby and when they first venture into  the selling process online they can not possibly now if it will lead to enough sales that would reach the £1000 limit.My friend's small business started as a hobby,she loves making fashion accessories  in her spare time-it is now proving to be an extra source of income and has reached a point that it can be considered as a small business-she has built up a portfolio of work and if a customer wishes to purchase an item she makes it to order-she does not have a huge stock of items so she doesn't need to worry about storage space.The items she makes are small and compact-easy to package and ship/post.My friend is aware of how long it takes to make an item so she is able to give accurate estimates of the time it will take for each customer to receive their order-she has built up a loyal customer base as she always produces good quality work and ships/posts items within the timescales she has given-positive customer feedback has helped her small business grow as it seems to make her online profile more visible-she has not set up her own website but will consider this if she decides to expand her business.I think she is happy to continue they way things are,she makes extra money each year (around £3000)and has fun whilst doing this.

  • I buy stuff on ebay to play with and when I'm fed up with it, I eventually sell it on.

    It's not a business - it's just me getting rid of my junk - if I happen to make a profit, then good for me - but as purchase and sale might be in different years, there's no way to calculate a tax liability - and if I fix or improve the item, I can't itemise what I've put into it but I'm sure I could prove I technically made a loss if I ever have to..

  • Thanks. 

    I like making things in my free time but I don’t have space to keep them so I thought I could sell them - but I was super afraid to start. 

    I don’t know what would sell well but if I don’t need to worry about tax I can try and sell few things and see how it goes.

    And write everything down (expenses and profits) 

  • Have you looked online to what similar things sell for? And do you know your making costs per item?

  • Hello,I am presuming that even if you sell one or two items that you would not make a profit of £1000 or above?At this stage there is no need to inform the tax office about any potential additional income.If after a year of trading you were fortunate enough to make a profit of £1000 or more then this would be the time to declare  extra income.At this stage, I would not be concerned about setting up as an independent trader and there is no need to inform the tax office about anything,there would certainly be no need to inform the tax office about one sale-this would only be necessary if your profit reached £1000/above.I am guessing that the items that you intend to sell are not particularly expensive-it could take multiple sales before you would reach £1000 in profit.If you inted to try out the process if selling online-take note of any costs-materials,shipping...keep all receipts just in case you do need to contact the tax office following a year of selling online.A simple log book to take note of expenses and any potential profits .Some sites charge a fee/ small percentage rate if you make a sale .others have no charge.

    I have recently  been considering making and selling product online.I have a friend who has several years of experience doing this-she has a full time job but makes an additional income from selling her craft work-during her first year she did not make much profit and did not exceed the £1000 mark so she had no need to declare anything to the tax office.My friend's products are now selling well and she does need to declare her additional income-I am not sure of the exact details of this process but it is not something she concerned herself about when she first started to sell things online.

    Whatever you decide to do,I wish you all the best. : ) 

  • If it's small numbers to test the market, ebay is easiest - no point investing huge sums if doesn't sell. You'll get a good idea of the consumer interest from that.