1. What does SSTB mean? See our glossary of acronyms.
    Dismiss Notice

Local vape shop?

Discussion in 'The Vapor Lounge' started by Pollard, May 16, 2018.

  1. Pollard

    Pollard New Member

    Hi! A few months back I started buying parts online in bulk and selling them locally, and it's got quite good business. However I was wondering about tax on the money I get - will it all count as income? I normally deposit whatever money I make at the end of the week, and keep good tabs on what money I spend and make on selling stuff, which I understand is good practice for a business. I've looked at this salary calculator site (https://www.income-tax.co.uk/)and apparently with my part time job I will be going over the personal allowance amount. Should I be worrying about this? Hope someone can advise :)
    OldNewbie likes this.
  2. Hackerman

    Hackerman Unspecified

    Out there
    Hobby producing income in not taxable under federal tax laws.

    If it is not your primary source of income, it may be considered hobby income. Do you have a regular job? Do you make considerably more money at your job than at your hobby?

    If yes to both of those, your hobby income is probably not taxable.
  3. OldNewbie

    OldNewbie Well-Known Member

    Are you sure?

    I know nothing about taxation in the UK, but the rules on hobby income are very different than described in the U.S. On a quick glance, I saw an old article on farm hobby income in the UK that seems to describe UK law much as it is here. However, the jargon is different from what I'm used to and I'm not able to spend the time to get into the depth of the question to see for sure right now.

    In the U.S., "Income" no matter if it is from your job or from a hobby is taxable. The difference between the two (hobby or business) usually comes up when there is a loss. If it is determined the work is a hobby rather than a business, a loss cannot be deducted from other income (Like what was earned on a job.) while a business loss can.

    Is it the same or is it different in the UK?

Support FC, visit our trusted friends and sponsors