Do I need a trading licence?

Whether you need a trading license depends on what you are selling and where. Generally, you do not need a license to start a business, but you must register as self-employed with HMRC if you earn over £1,000. Specific licenses are required for street trading, selling alcohol, or operating in certain sectors like security, food, or, in some cases, trading on public land.

Do you need a trading licence?

If you are trading on private land you may not need a licence. However if you are trading on private land and you are within seven metres from the public highway you will need a street trading licence.

Do I need a licence to be a market trader?

Depending on where you work, you'll need to apply to your local council for a: market stall licence. street trading licence.

Can I sell products without registering as a company in the UK?

You can start trading straight away without registering. However, you must register for Self Assessment as a sole trader if you earn more than £1,000 in a tax year (from 6 April to 5 April). You can choose to register earlier. Company owners need to register the company before they start trading.

Do I need to tell HMRC when I start trading?

You must tell HMRC within 3 months of starting your tax accounting period if your limited company is within the charge of Corporation Tax and is now active. The best way to do this is to use HMRC's online registration service. You will need to sign in with the company's Government Gateway user ID and password.

What does it cost to become a motor trader (what do you legally need)

How much trading is tax-free in the UK?

All sellers have a £1,000 tax-free allowance for 'trading income'. So if all your trading income is below this threshold, you won't need to tell HMRC and fill in a Self Assessment tax return.

Can you sell items as a hobby?

This is a very popular misconception - the reality is that any online or offline selling activity in which the main motive is to make a profit is deemed by the IRS to be a business - this applies no matter how much you are making in revenue.

Do I need to register my side hustle?

It's your responsibility to tell HMRC about money you make on the side, not your main employer's. Income from side hustles isn't included on your payslip. If you don't tell HMRC about those extra earnings you might be given a penalty.

How much can you sell on Etsy before paying tax in the UK?

HMRC lets you earn £1,000 a year through websites like Etsy without worrying about income tax. If you had sales of more than £1,000 a year with Etsy, you need to submit a tax return.

Is it illegal to run a business from home in the UK?

No, it's not illegal to operate a business from home in the UK. As we've discovered above, as long as you have the appropriate permission, pay the necessary business rates, don't cause a nuisance to your neighbours, and don't produce hazardous waste or excessive noise, you should be able to run a home-based business.

What is the 90% rule in trading?

The "90 Rule" in trading, often called the 90-90-90 Rule, is a harsh market observation stating that roughly 90% of new traders lose 90% of their money within their first 90 days, highlighting the high failure rate due to lack of strategy, poor risk management, and emotional trading rather than market complexity. It serves as a cautionary tale, emphasizing that success requires discipline, a solid trading plan, proper education, and managing psychological pitfalls like overconfidence or revenge trading, not just market knowledge. 

What are the 4 types of traders?

There are 4 primary trading styles.

The 4 types of trading: scalping, day trading, swing trading, and position trading. The duration of time that trades are held determines the difference between the styles.

What happens if you trade without a license?

Trading without a required business licence can lead to serious consequences, including: Fines. Prosecution for trading illegally. Seizure of goods.

Can you sell stuff without being a business?

* Scale of Sales: Small-scale, occasional sales may not require a business license in some areas. However, if you plan to sell items regularly, especially as a primary source of income, you are more likely to need a license. * Online vs. In-Person Sales: The method of selling can also affect licensing requirements.

At what point do I need to register my small business?

Registering with HMRC as soon as you start trading, and completing a Self Assessment tax return on time each year if applicable, or sending your Making Tax Digital updates and submitting your tax return. Keeping accurate business records - depending on your accounting basis - and accurate records of allowable expenses.

How much can you earn without declaring?

The 'trading allowance' means that in many cases you can make up to £1,000 from working for yourself in a tax year without having to declare those earnings to HMRC.

Can HMRC investigate a gift?

While there are strict rules around the amount you can gift each year, undeclared or wrongly declared gifts may trigger HMRC scrutiny.

Is HMRC warning side hustle tax?

Anyone who earned more than £1,000 from side hustles in the 2024-25 tax year (6 April 2024 to 5 April 2025) will need to register for self-assessment as a sole trader and file a tax return and pay any tax due by 31 January 2026.

What are common side hustle mistakes to avoid?

5 common side hustle mistakes and how to fix them

• Your audience is too broad. If you're saying “this is for everyone,” it's actually for no one. ...
• You're skipping the quick wins. ...
• You're not setting small challenges. ...
• You're working in isolation. ...
• You're afraid to start small.

Can I sell things I make as a hobby in the UK?

Starting a side business based on a hobby is a good way to test out whether the entrepreneurial life is for you, and whether your hobby is profitable. In very general terms, your hobby is a business if you sell your products or services, and the income that you receive from doing so is more than £1,000 in a tax year.

What is the 5 hobbies rule?

“The 5 hobby rule is related to the five different categories that hobbies can fall into,” says Papa. These include “hobbies that 1.) can make you money, 2.) keep you active, 3.) help you be creative, 4.)

What is the hottest craft right now?

The most popular crafts right now include the booming revival of crochet (especially granny squares), trending fiber arts like punch needle/rug tufting, personalized techniques such as wood burning, and digital/resin crafts like creating 3D printed items, epoxy resin art, and laser-engraved goods, alongside popular paper crafts like handmade stationery and invitations. These crafts appeal due to their potential for personalization, profitability, and alignment with vintage/nostalgic aesthetics. 

Do I need to declare money from a hobby?

Get help with your hobby or side hustle earnings

If you're earning over the trading allowance through your hobby or your side hustle, then you will need to complete a self-assessment tax return.