Tax on sales from hobby?

G

guido

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Hi - Hope I have the right forum. My question is, do I have to pay tax on sales from a hobby - thinking of making and selling wooden toys? Is there a limit, i.e. an amount per annum I can earn from the sales I make before I would need to declare this for tax?

Any help much appreciated
 
By hobby; are you expecting to make a profit OR trying to make a profit (irregardless of whether in fact you are making a profit) ?

Are you doing anything to try and sell these toys ? How many are we talking about ?

Is it part-time evening work or daytime work ?

(There is a series of tests applied by the Revenue for this - the Badges of Trade from a Royal Commission in '54)
 
thanks Kildavin....
In short, yes would like to make a profit, well cover my costs and make it worth my while.....definitely part-time and to friends and possibly friends of friends....
it may not be worth it, depending, hence the question! thanks
 
I thought there may be an amount of money (from this) that I could earn before being taxed? is this not the case....doesn't sound straightforward from your post, thanks
 
If you have a job and this is something in your spare time then you are most likely already in the tax net. In which case any additional income you earn will attract tax.

The question is whether or not you are actually engaged in a trade, which is where the badges of trade come in. If you were making the things for your own enjoyment and only selling the output by word of mouth to cover your costs, rather than with a view to profit, then you could argue you're not trading.

Generally though, if you are making money at it, Revenue would be likely to form the view that you are trading, and the income is taxable.
 
Whatever about profit, toys! kids! product liability insurance definitely I would think, just in case, you never know what a child might decide to do with a toy that you hadn't envisaged.
 
Now we're definitely into trading; whether it's profitable or not is a side issue IMHO.

Product liability insurance, disclaimers ("not suitable for children under x years of age"), paint / varnish / finish toxicity tests, and so on.

Years ago my late father made little chairs, stools, desks, dolls' houses (with furniture!), garages, cradles, barrell-top chests, play-pens for friends and family as gifts and as his hobby. In these times of 'elf and safety' our lives and his would have been much the poorer due to what I believe is over-regulation.
 
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