Do I need to register as a business to sell crafts?

When it comes to crafting, there are very few areas in which a licence is essential. If you are working with and selling alcohol, food or have a business premise that isn't your home, you may need a licence. Otherwise, it is mostly acceptable for a small business to simply register with HMRC and begin trading.

Do I need a licence to sell crafts?

FACT SHEET - STREET TRADING ART AND CRAFT EXHIBITIONS DO I NEED A LICENCE? With few exceptions, any form of selling of goods or the provision of services which takes place either in the street, or on the public footway, or up to 7 metres from any street, requires a licence.

Do I need to register a small craft business?

Do I need insurance to sell handmade crafts UK?

There is no UK law requiring market traders and stallholders to have insurance. However, some market and fair organisers may require their traders to have public liability insurance to set up a stall at an event.

What do I need to do to sell handmade items?

You can sell handmade online via your own store built with a platform like Shopify, on third-party marketplaces like Amazon and eBay, with niche sites like Etsy and Big Cartel, and on social media sites like Instagram and Facebook. You can also sell handmade items wholesale to other businesses.

REGISTERING YOUR CRAFT BUSINESS | How To Legally Start A Craft Business + Legal Tips For Buz Owners!

Do I need a license to sell at craft fairs UK?

If you are attending an organised Craft Fair, it is likely that the organisers will have obtained a licence to cover the event itself. However, if you are trading at a market for example, you may need a market stall or street trading licence. Contact your local council to understand what requirements there might be.

How can I legally sell my homemade products UK?

Set up as a Sole Trader

To register as a sole trader, you must be self-employed and have your own business. If you are earning over £1,000 a year through your craft business, it becomes a far more serious, legal requirement to register with HMRC.

Can I sell products without registering as a company UK?

So, in general, any business in the UK must be registered if a trade or professional activity is carried out, goods or services are bought or sold, income and profit are generated, and interest is earned.

How do I start a small craft business from home UK?

Can you sell DIY crafts?

Creating a profitable home business starts with finding the right idea for things to sell. DIY crafts like knitted scarves, soaps, baked pet treats, bath bombs, crochet, and costume jewelry are all easy things to make and sell from home, because they don't require specialized skills or equipment.

Can I run a small business without registering UK?

Every new business in the UK must register, though the process may vary depending on what type of business you have. Here we will explain the features and responsibilities of different business structures.

What do I need to know before starting a craft business?

What type of business is a craft business?

Craft businesses are the opposite of mass production, employing a hands-on approach to produce unique items for customers. Occasionally machinery may be used, but often these require operation by a skilled artisan. Retailers may opt to offer customization of products to further cater to customer demand.

Do I have to pay tax on selling crafts?

If your answer to last question “Am I running a business” was yes, then you will need to register for Self Assessment and declare any profit (or loss) made from your craft business on your self-assessment tax returns.

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.

How do I start a craft business from home?

What is the most profitable craft to sell UK?

Can you make money from selling crafts UK?

Yes, you can make money from a crafting business. You'll need to invest in equipment, supplies and time if you want your business to succeed. If you have a hobby that you enjoy and are good at doing it, there's no reason not to turn it into a small business!

How much can you earn before registering as a business?

Do I have to register for anything? Yes, is the short answer. You certainly must sign up for Self Assessment with HMRC if you earned more than £1,000 through self-employment.

Does Etsy report to HMRC?

From 1 January 2024, popular online sales platforms such as eBay, Etsy, Vinted and Airbnb must report seller earnings to HMRC.

What happens if you don't register a business?

You risk a failure to notify penalty that may cost you up to 100% of the tax owed in addition to having to pay that tax if you don't register your business with Her Majesty's Revenue and Customs (HMRC). So register for taxes as soon as you start trading, and make sure to file your returns on time.

Do I need insurance for my craft business?

Whether you make your living from your handicraft or view it as a passion project, if you sell your work, you need insurance cover. Even if you don't see yourself as a business, you're as open to legal action as any big company.

What is classed as handmade?

The official dictionary definition of 'handmade' is “made by hand rather than machine” (Oxford Dictionary, 2001). In theory, therefore, anything that involves machine power cannot be described as 'handmade'.

What qualifies as handmade on Etsy?

Handmade items are items that are made and/or designed by you, the seller. If you sell handmade items, you must: Physically make or create the original designs for your items. Include each person involved in making your items or running your business in the About section of your shop.