The Taxman

[notaeab]

Please could someone help me i want to sell honey i have left over and next year hope to get more how much do i need to declare to the HMRC ?

 

[Gilberdyke John]

Please could someone help me i want to sell honey i have left over and next year hope to get more how much do i need to declare to the HMRC ?

Every year this subject gets beaten to death by someone. Try using the group search function.

 

[Hivemaker.]

I have to pay tax on all honey sold, so i only sell it for a couple of quid per pound, less tax to pay then,

 

[notaeab]

I have to pay tax on all honey sold, so i only sell it for a couple of quid per pound, less tax to pay then,

isn't that unfair to other beekeepers?

 

[notaeab]

sorry i'm new to this i just wanted some help maybe i will go to another forum this one isn't very friendly

 

[JohnyP]

This forum is VERY friendly but you should really search a topic before posting. There are some really useful threads on this subject already.

Good luck

 

[notaeab]

THANK you will try to work out i have been told unless a registared business can't claim for new equipment etc so everything sold as to be declared i might have to just leave it on the hives or tip it away

 

[Arfermo]

sorry i'm new to this i just wanted some help maybe i will go to another forum this one isn't very friendly

It is friendly actually. Put it down to the weather. The question of tax depends upon your own tax situation. If you are selling honey as a business then tax is probably due and you will need to sort that out with HMRC yourself. If you are a hobby beekeeper, like most of us, and only have a few hives and sell honey from the door or to friends etc., the probability is that you will have spent more on equipment (for which you get no tax credit) than you will get from selling a few lbs of honey and will there fore be substantially out of pocket for some years. Then there is the question of losses of bee colonies and queens that die and have to be replaced from UK sellers etc that often occur. HMRC will have no sympathy on that score either. Suggest you just don't ask about it and best of luck.

 

[pargyle]

http://www.beekeepingforum.co.uk/showthread.php?t=31702&highlight=hmrc

If you put HMRC in the 'Search' function at the top of the page .. 3 in from the right .. and scroll down you will find quite a few relevant threads - the one above is the latest I think.

The rest of them should keep you reading until it's time to extract your next honey ...

People on here a bit testy this morning it seems ....

 

[Arfermo]

I have to pay tax on all honey sold, so i only sell it for a couple of quid per pound, less tax to pay then,

That remark simply does not make sense. Many years ago, people told me they wouldn't do overtime because they would be paying more tax than the income they received. That was again the daftest reason imaginable as it completely ignored the fact that the tax man takes only a proportion of the additional income - currently 20% for basis rate taxpayers and a max of 40% on the higher rate - meaning one keeps a minimum of 60% of the extra income. The tax man certainly does not take the whole lot plus some as some believe. Cutting ones own throat readily comes to mind. In your case you will be selfishly cornering the local market at a price way below the going rate for a premium product. Shame on you.

 

[pargyle]

I have to pay tax on all honey sold, so i only sell it for a couple of quid per pound, less tax to pay then,

Oh dear Pete ... I think you need a tongue in cheek smilie on here ... What have you started ?

 

[itma]

Please could someone help me i want to sell honey i have left over and next year hope to get more how much do i need to declare to the HMRC ?

Very simple.

Declare your profit after costs.

If you are keeping bees as a business (rather than a hobby that might in some exceptional years cover its costs) then you could declare your losses as well - but you also get into all manner of other 'business' admin.





I could add that my bees actually work for a Luxembourg-based company, and the HSBC Swiss account is necessary because I have to pay into it the royalties for using my label design (and those royalties are so high that I'm never going to make a product on my UK activities). Oh, and the Caymen Islands limited company that has the swiss bank account is ONLY part of the structure so that other beekeepers can't discover the level of my profitability, as that might cause disharmony which can easily be avoided by that simple mechanism.
I could add that, if I was a banker. But being an honest beekeeper, I go by the principles I stated first.

 

[Hivemaker.]

... i might have to just leave it on the hives or tip it away

Yes, that would work well to avoid having to pay any tax on any honey sold, tipping away any surplus left after feeding would be best, as this would avoid so much lifting, and leave room for the bees to collect more honey to tip away.

 

[notaeab]

Ah you cannot claim expenses equipment etc unless you are a registered business .
So ALL honey sold is profit that is what i have just read from this site and the HMRC

So any honey i sell must be declared or i am evading tax it is not worth the hassle

 

[pargyle]

Ah you cannot claim expenses equipment etc unless you are a registered business .
So ALL honey sold is profit that is what i have just read from this site and the HMRC

So any honey i sell must be declared or i am evading tax it is not worth the hassle

No ... it's not as simple as that ... read the threads on the search button. You only pay tax on PROFIT not SALES. If you are a hobby beekeeper/honey seller then it's highly unlikely you will have made a profit when you take into account the CONSUMABLES associated with your beekeeping. IE: Sugar, treatments, foundation, jars, labels, travelling expenses, electricity, PPE etc.etc. The only things you can't claim to offset against your sales, as a hobby beekeeper, are capital equipment items - hives, extractors etc.

So, unless you have a huge honey surplus and have not kept a record of what you have spent making that huge surplus I very much doubt there is anything of any note to declare.

You need to have a basic understanding of how our tax laws work and an hour or two reading the previous threads will give you that necessary understanding.

If my words appear a little harsh ... just consider them tough love ...

 

[Heather]

When I put in my time, equipment deterioration, electricity, cleaning expenses, insurance, I think my tax will be zero....And £5 per lb is my price. CASH!

 

[Hivemaker.]

Best to keep records of everything, just in case... the IR have a lovely way of sending you a huge bill for what they think you owe them, you have to prove them wrong, if you can't, your screwed.

 

[notaeab]

Thank you sound advice

 

[notaeab]

are you a registered business? if not then ALL sales are declarable

 

[notaeab]

When I put in my time, equipment deterioration, electricity, cleaning expenses, insurance, I think my tax will be zero....And £5 per lb is my price. CASH!

are you a registared business? if not then all sales are declarable