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I have a hobbie, is it a business because i make money? Thanks

Hello i repair phones, tablets etc. It started as a hobbie but now i am making a fair amount on each phone. I usally buy, repair and then sell the phone but now i sometimes repair for friends and family aswell. I am only 15 years old and have been doing it for about 9 months now. I make about £30-£70 on each phone sold/repaired.
I am wondering if this is a buisness, if so do i need to regiser it?
I would like to make it a buisness as i'd love to have m own business and love repairing phones. I know there are alot of repair shops but i have a few USP that may give me the edge. If i were to make a business where would i start, what would i do, and how can i think of a good buiness name?
Thanks Lewis

Reply 1

Rhobeta

Hi bballer99.

Have a look at hmrc.gov.uk, specifically the information on becoming a sole trader. I was thinking of registering a few days ago (I don't do any self-employed work at the moment, but am considering online piecework).

The key things I got were:

1) If you make a profit, you are trading as a business. There are other criteria , and it's not quite clear but I think maybe just one or two need apply.

2) You have until October in the second tax year of your business to register for tax self-assessment. This means you have to keep track of all your business-related income and expenses so you can tell the government every April. And if you make enough, you have to pay tax (you also pay National Insurance contributions). It's free to register and you can do it online: there are no fees involved at any stage (just the NI and maybe tax).

Having said all that, you are 15, and still a child in the eyes of the law. I'm not sure what the legal working age is or if the government make exceptions for enterprising youngsters like you—do you have a National Insurance number, for example? I think I was given mine at 16. There's a number on the Hmrc website you can call for advice—I'm sure they'd be happy to help.

Sent from my iPad using Tapatalk

Reply 2

EthanNCL

i would just save up until you are a bit older and do it properly, wait until you go to college they will probably be an enterprising scheme to invest in students businesses like there is at mine then you get the support you need to make a top notch business, Good luck bud hope you do great!

Reply 3

bballer99

Original post by EthanNCL

Thanks very much, i will ask the college i am going to this september and see if they do such a thing. Thanks again
Lewis

Reply 4

username1799249

Original post by bballer99

Firstly, good on you. As long as you don't limit yourself to fixing phones for the rest of your life, you will go far. Personally, I wouldn't worry too much about becoming legit. In this tax year, you can earn £10,000 tax free. Although in reality you should be registered and submit a self assessment form, inland revenue have bigger fish to fry than a school kid earning pocket money, all be it lucrative pocket money.

So focus on your studies, keep this on a lucrative back burner and if you ever decide to take it to the next level, that may be the time to start declaring things.

Good luck!

I have a hobbie, is it a business because i make money? Thanks

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