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Festive Giveaway – £400 of Christmas Hamper Prizes

What better way to kick off December than with an amazing Christmas Hamper Giveaway?

Us crafters barely get a break during the festive season, its all go from the time orders start rolling early  September until you decide to close up shop in December (and we all know how many messages we still get even when you say you’re closed for Christmas!)

If you enter this giveaway you’re in with the chance of wining a stunning Christmas Afternoon Treats hamper, perfect for having a well deserved afternoon off in front of the TV before all the madness of the big day starts.

Some of you might already know but for those of you who dont, before Natalie and I started BangOnBlanks my main presence online was as a Money Blogger over at CharlotteMusha.co.uk, the UK community of Money Bloggers are a lovely bunch and they are the ones who have joined together the throw this amazing giveaway!

Continue reading Festive Giveaway – £400 of Christmas Hamper Prizes

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HMRC Trading Allowance and your Craft Business

HMRC Trading Allowance Craft Business

Today we’re going to talk about how you might be able to use the HMRC Trading Allowance in your Craft Business.

When you’re running a small business it’s important to not only make sure you are running it properly but to also utilize as many benefits that may be available to you as possible.

So, What is the Trading Allowance and how can you benefit from it?

The Trading Allowance is something that was brought into affect by HMRC in April 2017. It is a £1,000 allowance available to some sole traders.
If your income (when we are talking about craft businesses this would be our SALES) from your business is less than £1,000 a year then you don’t need to pay tax on your business income or register for Self-Assessment with HMRC.

If your income from your business is more than £1,000 a year then you will have to register with HMRC BUT you can use the Trading Allowance (or your actual business costs and expenses) against your income to work out your profit. Your profit is what you pay tax on so if we can get that as low a possible it’s always nice!

It’s important to note that if your income from your business is over £1,000 then you need to register with HMRC even if your profits are below £1,000.

When would you utilize the Trading Allowance?

You would use the Trading Allowance if your business brings in more than £1,000 a year in sales but your have less than £1,000 for the year in expenses.

Lets look at some examples
Danielle has a business making tutus. She earns £1,850 income a year from this business and incurs expenses of £750.
If we use her actual expenses figure it would make her profit £1,150
Income     –     Expenses     =     Profit
£1,850      –     £750             =     £1,150
but if we use the Trading Allowance
Income     –     Trading Allowance     =     Profit
£1,850      –     £1,000                           =     £850
So because the Trading Allowance makes Danielle’s profit lower she would use that and save herself some tax.

Jessica has a business selling balloon arches. She earns £1,850 income a year from this business and incurs expenses of £1,200.
If we use her actual expenses figure it would make her profit £1,150
Income     –     Expenses     =     Profit
£1,850      –     £1,200          =     £650
but if we use the Trading Allowance
Income     –     Trading Allowance     =     Profit
£1,850      –     £1,000                           =     £850
So in this case Jessica would use her actual expenses as they make her profits lower and would incur her less tax than if she used the Trading Allowance

Using the Trading Allowance in your Craft Business won’t be relevant to everyone but when you are just starting out it’s really important to use any benefits or tax features that can help to maximize your profits.

Had you heard about the Trading Allowance before, do you think it might be something you’ll be able to use?

 

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Welcome to the BOB Blog!

Hi and Welcome to the newly launched BangOnBlanks Blog! Some of you might already know me, I’m Charlotte and I launched BangOnBlanks with Natalie back in 2018.

I recently took a step back from the businesses in mid 2019 to focus on some other projects I’m working on but I missed being part of the crafting world so have decided to create the BangOnBlanks blog to keep me in the loop still and to help teach people how to grow their craft businesses!