Q: I’ve started to make products for children’s rooms from home. It’s still in the early stages, but to start off I thought of selling on ebay or from my own website. Would this mean I’d be classed as a business?
Feb 09 2009
Answered by: Ashley de Safrin Ask a question
Legally, if you carry out work from a home office or choose to manufacture products from home, this would count as a business activity and therefore class you as a business. Clearly, it is a matter of degree. If you sell a few items for a few pounds rather than anything on a larger scale, the chances are you are selling for cash and no one would be the wiser. Legally, however, if you are selling anything with the intention of making a profit from the sale, then this is a business and you would be classed as such.
Any work carried out from home as a business venture means you are using part of your house for work purposes. This has implications for house insurance and also, in normal market conditions, for Capital Gains Tax (CGT). If you use part of your house for an office then this part of the house would be liable for CGT. There may also be implications if you live in a leasehold property as to whether your lease allows you to set up a business from home.
If in doubt, your best solution is to talk to an accountant and take more detailed advice.
Comments [1]