Possible selling images on a commission basis

by **dslr** on Sat Mar 06, 2010 5:03 pm

As a keen photographer, a local shop has asked if I would be interested in putting some of my images in their shop for sale on a commission basis, where I would make about £10 profit per image. Not really knowing if they are going to sell or not, plus if they do sell, I don't as yet know how many. So my question is do I need to do anything before I start trying to sell or do I need to see how many sells first. By the way I am already in full time employment paying tax through my employer.

by **Peter D** on Sat Mar 06, 2010 7:13 pm

You could start doing this and if it takes off then you can register as self employed within 90 days of commencent. However be aware that if you trade this FY then you should be submitting a SATR for the short period. However you are only a months away from the new FY. Ensure you do not claim any expenses, capital outlay or receive any income this FY. I.E. if the shop sells some images ensure the payment to you is after the 5th of April. Regards Peter

by **dslr** on Sat Mar 06, 2010 8:19 pm

Thanks Peter, The shop does not have any of my images at the moment as they are not starting up until next week, but thanks for the advice of starting in the new FY. As far as being Self employed will there be any costs involved, as I need to way up if it will all be worthwhile financially.

by **Peter D** on Sat Mar 06, 2010 9:19 pm

Registering with HMRC as self employed incurs no costs. Regards Peter

by **RAL** on Sun Mar 07, 2010 12:22 am

I presume that you do well and set up as your business. As suggested by Peter you can register yourself as a self-employed.

However you need to keep the records of your income and expenditure, then you have to submit self assessment and pay the tax and ni on your profit. You may need to pay Class 2 weekly amount of £2.40. If it is low earning then you apply for exemption. Also you can apply for deferrement of Class 2 as well as you are in full time employment.

by **dslr** on Mon Mar 08, 2010 6:53 pm

RAL wrote: You may need to pay Class 2 weekly amount of £2.40. If it is low earning then you apply for exemption.

Is there a set amount that means low earning, as I only think I would make between £100 and £500 max in a year.

by **RAL** on Mon Mar 08, 2010 11:49 pm

dslr wrote:
Is there a set amount that means low earning, as I only think I would make between £100 and £500 max in a year.

Yes, for current year if you earn less then £5075, then you can apply for small earning exception, which exempt you from paying Class 2.

Limit for class for is £5,715, means you do not pay class 4 nic on profit of upto £5,715.

by **RAL** on Mon Mar 08, 2010 11:51 pm

Please read

current year =2009/2010

Profit = taxable profit

(just in case "incredulum" find me sitting on the fence) :lol:

by **Incredulum** on Tue Mar 09, 2010 3:20 pm

Peter D wrote: I.E. if the shop sells some images ensure the payment to you is after the 5th of April. Regards Peter

And this would make a difference because...??????

OP would be trading, not employed, and therefore taxed on the accruals basis, not the cash basis.

Given the sums to which you refer, it's probably not worth worrying about which year it goes into. Equally, given it only takes five minutes to complete a tax return, it is surely worth trying to get it right.

by **dslr** on Wed Mar 10, 2010 9:37 am

Again. Thank you all for your comments, I will be going down the Self Employed route, but will leave it until after April so everything starts in the new FY . I presume that if I decide to buy a new camera (In new FY cost of approx £1800) and only make between £100 - £500 profit selling images, then I would not have to pay any tax anyway - just complete the Tax return form with all of the figures - Am I right in saying this.