Selling Crafts

Hi All,

I started a hobby a few months back making little home goods/decor items. Its just for fun and I enjoy it. I buy all the materials out of my own money and originally started for something to do during lockdown. I made a few items for myself and then I was giving them to friends and family but honestly everyone has had 1 (or 2!) by now. I keep making them because I enjoy it and its something I just do while sitting watching TV. But one of our bedrooms is full of finished stuff now and my husband has told me I need to figure out what I'm doing with them.

Everyone is telling me to try selling them, but everyone probably always tells everyone that. If I could sell them it would be great because then I could keep at it, have something to do with them when I'm finished, and possibly a way to pay for the materials, or even make some money. I'm trying to be realistic though, I might never sell any, or not make money and thats fine.

I know someone asked about this not too long ago for hair accessories, but I'm asking again because its a little different. I'm a fulltime PAYE employee and I'm not looking to start my own business. In fact I would really rather not register a business at all because I don't want to be classed as self employed. In case I ever lost my job I don't want to lose any entitlements to social welfare or anything else. I think if you are a PAYE employee you can tell Revenue about additional income on MyAccount if its under €5000 right? Would selling crafts fall under this also? I seriously doubt I would be making over €5000 after the cost of materials, or anywhere even near it! But can I declare the income here? Not trying to avoid paying tax or anything, in fact I'd want to pay it and not run the risk of getting into trouble! But I don't want to affect my job, tax credits, or paye entitlements.

Yes, it is very simple to declare extra income on your Form 12 income tax return.

I have done it for teachers declaring grinds income.

I can't see it having any impact on PRSI or welfare benefits.



People who rent out houses do this all the time.

Thanks for the reply. One of the girls I work with does it for her rental house, just wasn't sure if it applied to selling crafts too or if I would have to register a business instead! Is it just as simple as keeping a file of all receipts for materials paid, then giving a receipt for anything sold (either I get a little invoice book or make a template on word?) and the income is just any profit I make after the cost of materials? If I made enough I'd honestly probably just pay an accountant.
I wouldn't have to charge VAT right and declare that as it would be under the amount to register?

I'd probably just start with a Facebook page or something see how I get on. Could also try Etsy if there seems to be any interest.

The other thing I wanted to ask was about trying craft fairs. The other thread someone mentioned about Revenue targeting people at a craft fair once. If I didnt register anything and just declared the income at the end of the year, would my record of receipts be enough if that were to ever happen? That would be a long way off anyway as you have to have insurance to sell at any fairs I'm pretty sure.

I also saw something about "coded" tax credits or something with your employer if you have additional income. Wasn't sure if this would apply or if thats more to do with if you received Social Welfare or something.

Sorry if I sound clueless I've never, nor anyone in my family, ever had income to declare, everyone has always just worked as a PAYE employee so we are a bit clueless.

Revenue don't want receipts.
You keep all receipts.

When you do you normal Form 12 tax return, you enter the additional income, see below:


Look at section 13.

Here are the VAT thresholds.