I thought this was discussed in thread on this forum in the not too distant past. But in any case, in order for the tax to be interested it has to be classed in their eyes as a business.At what point should you think about having to submit a self assessment tax return and declare honey sales?
this year is going to be awkward as most will have had a bumper crop that might take a long time to sellI thought this was discussed in thread on this forum in the not too distant past. But in any case, in order for the tax to be interested it has to be classed in their eyes as a business.
If you are a hobby beekeeper (like every single one of us on this forum...) then you are exempt at the moment.
To be a business you would have to be regularly selling produce or buying and selling produce or items. The honey crop at the end of the season that you may sell at the door would not count. If you had a stall a couple of times at the local farmer market say, then neither would that. If on the other hand you had a stall most of the time then that would be a business.
if you visit the government web site (gov.uk) there is a link to this info. and to be honest it gives you examples that are better than mine and easy to grasp.
+1 .... I'm with Tom Bick ... wait until the knock on the door and in the meantime keep records which will show you just how much money you have SPENT and how much each jar of honey has really cost you and how much you LOST every time you sold a jar ... but keep them well hidden from any significant other ....
Offset implies you have fewer expenses than income from honey
Yes ... HMRC is about the only organisation where you're assumed guilty and then have to move heaven and earth and pay through the nose to prove you are not ... and trust me... I've been there. The reality is that they will always seek out the easy targets and once you have identified yourself it's a whole lot easier for them to come looking...They have ways if your selling it, and they love to estimate how much you owe them, and it's down to you to prove they are wrong.
The only way that you will be able to claim back the costs of any start-up capital will be if you make a business from your bees from the very start.It seems that if you are a new beekeeper then this is the time to declare to the HMRC, you can then offset the initial capital outlay for first hives, tools, equipment etc?
Any accountants out there?