HMRC on the lookout.............

Latest Articles

HMRC on the lookout.............
Page 1, 2, 3 Next

Downsizer Forum Index -> Small Business Questions, Ideas and Advice

Author

Message

MornieG

Joined: 17 Jan 2013
Posts: 933
Location: Bromham, Wiltshire

Posted: Fri May 02, 14 8:14 am Post subject: HMRC on the lookout.............

Just picked this up on two other forums so just in case it applies to anyone on here BEWARE

'' HMRC are on the look out

I have it on good authority (the horse's mouth itself) that HMRC are currently targeting small 'hobby' businesses and the word 'craft' was one of the specific words they used. They are having a crackdown and looking at websites, selling platforms (etsy, ebay etc) and visiting craft fairs etc so if you are selling but not registered you really need to do something about it pronto or you could end up in trouble and with a fine. ''

Mo.XX

dpack

Joined: 02 Jul 2005
Posts: 46207
Location: yes

Posted: Fri May 02, 14 9:57 am Post subject:

they should look at the crafty in the turks and caicos,bermuda,jersey,lichenstien etc etc etc etc rather than those at a fair but that would be a waste of time and effort.

the other thing is they announce such things to worry folk into paying protection money but only actually put minimum effort into making a few examples of hard working folk.

a few years back they went after a few semi pro ebayers but ebay and its users still thrive.

if your turnover can justify it forming a limited company will reduce your tax liability to next to nowt but even a sole trader can offset expenses against income if needs be.

if your turnover is less than the vat threshold they wont bother you and income needs to be proved so they are on shakey ground in practical terms.

tahir

Joined: 28 Oct 2004
Posts: 45669
Location: Essex

Posted: Fri May 02, 14 10:09 am Post subject:
Our industry is rife with dodgy traders, we've always traded at a huge disadvantage cos we don't fiddle. They could go for any sector and tidy things up but I can't believe it'd be worth their while to do the small crafty people, it would make no financial sense, especially as HMRC are under resourced already (unless this is a policy led thing that's given them mission specific funding?)

madcat

Joined: 24 May 2008
Posts: 1265
Location: worcester

Posted: Fri May 02, 14 10:21 am Post subject:
Typical, pick on the people who are trying to look after themselves a bit and ignore the mega rich who just help themselves to our money.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Fri May 02, 14 10:31 am Post subject:
It's not about money. It's a philosophy of this government.

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Fri May 02, 14 10:50 am Post subject:

Nick wrote:

It's not about money. It's a philosophy of this government.

Or it's just an unsubstantiated internet rumor? There's been a few targeted crackdowns over the years by various governments. And if you were to look at the laws introduced over the last decade or two I expect the current government has introduced more to crack down on the 'rich' than the previous one.

dpack

Joined: 02 Jul 2005
Posts: 46207
Location: yes

Posted: Fri May 02, 14 10:56 am Post subject:
gideon's trust fund would be safe even if it was filled by some very clever accounting so they might well have

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Fri May 02, 14 10:59 am Post subject:
A quick google doesn't find anything about a new crackdown but did throw up this PDF that may be of use: https://www.hmrc.gov.uk/factsheets/hometraders.pdf

Nicky cigreen

Joined: 25 Jun 2007
Posts: 9878
Location: Devon, uk

Posted: Fri May 02, 14 11:57 am Post subject:

I suspect the reason there is a rumour about re craft businesses is this is the first year you can submit returns based on cash basis rather than the accruals basis - to qualify for cash basis you have to be a small business - turnover under a threshold etc - eg craft businesses.

https://www.gov.uk/simpler-income-tax-cash-basis/overview

There is bound to be some confusion so maybe why HMRC are paying attention.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Fri May 02, 14 12:33 pm Post subject:

Treacodactyl wrote:

Nick wrote:

It's not about money. It's a philosophy of this government.

Oh, without doubt, it's an unsubstantiated internet rumour; of course it is. That's why we're discussing it.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Fri May 02, 14 12:39 pm Post subject:

madcat wrote:

Typical, pick on the people who are trying to look after themselves a bit and ignore the mega rich who just help themselves to our money.

Help themselves? Or provide what people want & receive money willingly from even the poorest in our society. As much as I'd like to pass the buck, if my craft items don't sell, it's because supply is higher than demand. That's why it's hard work, not because of a third parties tax arrangements.

Mistress Rose

Joined: 21 Jul 2011
Posts: 15966

Posted: Sat May 03, 14 6:08 am Post subject:

I don't think any of us willingly pay top bankers millions of pounds that comes from our money, but we have to use banks; most of us get paid at least partly by cheques/direct etc. In fact if we insist only on cash, that is when HMRC start to get worried. We each have to make the most of why our business is different; in your case Rob, there are not too many people supplying what you are, but most people can't see the difference between your meat and supermarket stuff, especially as the supermarket stuff is regarded as cheap even if it isn't. It is often inedible too, but that is another story.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat May 03, 14 9:33 am Post subject:

I wasn't talking about the meat side but the craft.

Big, sucessful businesses identy a need/want in the consumer and make that happen. Most craft businesses, on the other hand, identify something they can do and then try to sell that into an uncertain market, so it's always going to be an uphill struggle.

Thinking about my own craft side, I didn't approach it as 'other people have a need for Kerry Hill wool', I approached it as 'this wool is going to waste, I need to make use of it' when in reality the market doesn't care about that.

Mistress Rose

Joined: 21 Jul 2011
Posts: 15966

Posted: Sun May 04, 14 8:05 am Post subject:

Thought you meant your meat Rob. Yes, it is a question of marketing the waste at an economic price. A couple of small producers I know; one a smallholding and the other an alpaca farm, get the stuff commercially spun and sell that. I assume they are able to sell it better than the fleeces.

This is also why some joineries are making pellets or compressed 'logs' out of their sawdust. Must admit that is a waste product we are trying to find a use for.

We do find that the utility side of our business, the firewood, does better financially than the craft side which is mainly charcoal and turned green wood products. We can sell the charcoal, but it is doing it economically that is the problem.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Sun May 04, 14 8:26 am Post subject:
I'll bet. Putting a craft tag on what is, essentially, a commodity, will always be an uphill struggle.

	Downsizer Forum Index -> Small Business Questions, Ideas and Advice	All times are GMT Page 1, 2, 3 Next
Page 1 of 3

View Latest Posts