hobby income question.

[Londonchris]

Ok, so i have a tmi nimi & pay the relevant tax and alv that earns.

Just starting to consider selling a few "hobby" items of hand engraving which will not amount to much as it`s for fun.

Question is.. do i need to charge alv and do the booking under my tmi nimi or can it just run as a small hobby income that collects much less than what would be considered as taxable?

[Rosamunda]

On the one hand I would say it doesn't matter since you are supposed to declare the personal income to Vero anyway, even if it is a hobby.

On the other hand I would say you have to put it through your books because you are already registered for ALV. If you have the income but are not paying VAT on it, the red lights on Vero's new all-inclusive tax-machine might start flashing.

On the other other hand, why would you not put it through your books? That way the VAT on your raw material purchases and equipment (glass? metals? tools? etc) would be deductible. But yes, it would make the selling price of your articles more expensive for your customers.

If you can wait until next week, I could ask the question at the Bookkeeping and Tax course that some of us are attending in Kaisaniemi.

[Londonchris]

Thanks Penelope, if you could report back that would be great.
Basically it was the fact of making things more expensive that i would prefer to avoid.

Materials i get from the uk (with my alv number) so... i guess thats like buying stuff for the business and selling it as a hobby
Maybe i`d be best just playing it safe and the "customers" if any will have to pay that bit extra.