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Post Info TOPIC: Questions about taxes/ selling on Etsy


Honoured Mook

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Questions about taxes/ selling on Etsy


My business is a year old now and I'm hoping to open a shop on Etsy. I still don't know much about business so can you answer some of these questions please? Feel free to post the questions you have as well:

  • I'm 13 and my business is a year old, and I have had an income of £40 so far this year. When am I eligible to pay tax on the business? Some say it's when I'm 16 or when I make x amount of money, but I'm not sure how much.
  • When shipping, do I put the product on one of those plastic boards you hang them on in shops? If so, what are they called and where can I buy them? When I order supplies they come in clear plastic re-sealable bags with white stripes for writing the product on, so do I use those?
  • How do I collect money from the customer if they're buying online? Would Etsy work that bit out and send a cheque in the post with every order?

Thanks for reading it all :)

 



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Mookish Deity Most High

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Under 16s don't pay tax. Even when you do start paying tax you are allowed to earn over £7000 a year tax-free.

ZIp-lock bags? Ummmm I'm not actually entirely sure where you buy them. It's entirely up to you how you package your product, as long as it's safe for posting it's fine. There's no real right or wrong way and it all depends on the product you're selling.

You set up a paypal account and they can pay you through that. Etsy is simply a way for you to show your product and they take a small amount of money for doing so, they don't actually process the payments for your products.

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Mookish Deity Most High

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I'm not too sure on tax but Spikey is right as far as I know. If you really want to research it then the HMRC website will have some information, their self employed page is here

When selling on Etsy they take a small percentage of your products price as a listing fee. When you open your Etsy shop you'll have to have a Paypal account, when someone buys your item Etsy will redirect to Paypal who will process the payment, the payment will appear in your Paypal balance and once you have over a certain amount you can transfer the funds into your bank account. Do bear in mind that Paypal can sometimes hold funds for a certain number of days, or until the customer says they have recieved the item and left positive feedback. I know this is the case for Ebay sometimes, not too sure about Etsy. You will recieve the full amount + the postage you charge, and every month Etsy will send you a bill for all your listing fees for that month, which you can pay for using Paypal.

Everything you need to know about opening a shop on Etsy is here, in their FAQ section. Read everything carefully. 

As for packaging, that's really up to you. With my owls, I put them in a cute striped paper bag with a few business cards and post them in a pink polythene envelope. You can get really creative with your packaging, wrapping your item in tissue paper, using cute stickers, handwritten notes etc. If you're shipping something fragile I'd use bubble wrap. Just remember that your postage prices will need to reflect how much you spend on packaging. Anything you might want to use can usually be found on Ebay. If you want to use display cards, use them. When I buy things online I'm not much fussed over packaging as long as my item arrives undamaged and I don't think I've been overcharged (for instance, being charged more than the postage for the item when the item has come in recycled packaging). I keep all the enveloped and things my supplies come in and use them again if I can!

Hope that helps!



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[I am not afraid, I was born to do this]

Picklechops - splatterer of a thousand scrota! Don't mess with me! - Pickle according to Dave!



Honoured Mook

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Thanks guys :) Everywhere I ask I get a different answer. I'll see if I can set up a PayPal account but they want an address and phone number, and my mum's a bit 'meh' about putting info like that online. I found out where to buy 100 zip-lock bags really cheap so I'll get some of those. I don't know where I'll put them all until I can use them! Thanks for the links Picklechops I'll take a look at them.



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Honoured Mook

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My parents have a crazy idea that PayPal is unsafe? I've checked the privacy policies and everything, and it's a secure site.



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Mookish Deity Most High

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Show the policies to your parents? I've never had any problems with Paypal!

__________________
[I am not afraid, I was born to do this]

Picklechops - splatterer of a thousand scrota! Don't mess with me! - Pickle according to Dave!

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