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I have a hobbie which I make profit/loss, is it a business? Thankyou

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bballer99
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Original post by MrMango
How? I've not mentioned anything to do with money? I studied computing at uni and softly tabled into mobile devices but not in great detail so wouldn't mind learning a few skills, so how you've come to that conclusion is beyond me.


Posted from TSR Mobile

Oh ok looks like I misunderstood then. Good luck! :smile:
How did you start doing it? You must be very talented!

Posted from TSR Mobile
Original post by bballer99
Hello not sure in right place but figured this forum best suited my situation.
Basically I'm 15 years old and I love repairing phones,tablets and computers etc. I did some work experience at a computer technician shop and loved it so much!
I now buy phones broken or faulty off eBay, Gumtree etc. And then repair them and sell them on and yeh I do make profit/loss. I also sometimes repair phones for my friends etc.
Sometimes I make £60 on one item, sometimes £10 and sometimes nothing or even a loss. I usually get 1 item a week, sometimes 2 per week to fix.
I want to ask is this a business at my age and what I am doing, if it is what should I be doing?
Many thanks
Look forward to hearing from someone.


Outline tax implications:

- these transactions mean that you are trading, and the profits (turnover less expenses) will form part of your taxable income, unless it is to be treated as a hobby (broadly if you are doing it for fun, and you are happy to breakeven or to spend more on expenses than you make in turnover, year on year, then it will be treated as a hobby, but once you are profit making, it becomes taxable)
- if you have taxable income from trading, then you need to pay class 2 national insurance contributions if your profits are over the small earnings exemption (5,885 for the year to 5 April 2015). The NI contributions are calculated on a weekly basis as soon as you reach age 16. You notify HMRC using CWF1 (see http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=ytV91aFVn3U)
- if your overall taxable income from investment income (rents, bank interest etc), trading income, employment income etc is more than the personal allowance in a tax year (the year to 5 April), then you need to notify HMRC by 5 October after the end of the year regardless of age
- if your projected turnover for any 12 months exceeds the VAT registration threshold, you will need to register for VAT (currently £81,000)
- if you get anyone to work for your business, you may need to register as an employer.

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