Sole trader question

curlzy

Hey All,

I would really really appreciate some information from you. I have a full time 9 to 5 job for my bread and butter, completely unrelated to my question. Now, I have been doing a particular hobby for the last few years. Last year I started teaching this hobby and to say my classes have taken off is a major understatement. When I started teaching it was really for the love of my hobby and promoting it and the classes really just paid for the venue. However I'm inundated with requests for more lessons and I see that I will be making 1-2k every couple of months from this hobby. I won't be making any money per say. I will be putting the money I make teaching back into equipment and also into going to conventions to learn more myself (training). The idea being that my hobby would finance itself.

So here's my question, if I register as a sole trader and I put every penny into either equipment or training, do I need to file tax returns etc and is there any tax to consider?

People have advised that I just say nothing and continue as I am but it doesn't feel right to me, I really just want to do things the right way.

Thanks very much.
Curlzy

dbran

Hi

Strictly speaking you should prepare a set of accounts for the business and work out the profit and file a tax return in October every year.

Regards

dbran