17 Aug
2011
17 Aug
'11
12:21 p.m.
It's almost as bad in the US. =A0They
don't come in and make you instal=
l saw
guards, but if you don't have a tax attourney
they will claim that anyt=
hing
above a loss can't be a hobby and is self
employment income.
A Nascar team or horse breeder can be a (profit generating) hobby, but
according to the IRS making kits has a profit motive even when it is on=
ly 5%
of your claimed income.
Lets be realistic here.
The IRS does not have the manpower to go chase after someone that is
I would not bet on that in the UK.
making a few thousand on the side as a hobby business.
They have
bigger fish to catch. And if someone with a little "hobby business"
Problem is that over here the size of the 'fish' doesn't matter, only
that they've caught one.
does get audited, it is extremely easy to bury the
profit with
writeoffs.
I know quite a few people in the US, and even some in the UK, that
have turned a basement electronics hobby into a business, and somehow
everyone seems to be cool with the government and make money.
AFAIK, this would not have been a problem for me. Sure I would have had
to declare all the income from my hobby/businsess, and possibly pay tax
on it, but that is not what stopped be from running said business.
Provided yuo make that declaration and keep reasonable records (accounts,
etc) then there is no problem.
-tony