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Marlys Feb 4, 2008

Thank you all for posting this information, and especially for posting today. Somehow I missed this whole topic after my posting for suggestions from Laura, Daphne or any US artists. But as I look at the date, it was about the time Emma became really ill. Thank you so much Sue Ann, Judi, Laura and Daphne. Also you ladies from other countries; I appreciate your info and perspective.

Allyn maintains I don't need to do this...I think he thinks I'm just "playing" at this bear making stuff. I've tried to convince him from the beginning I wanted to do it; just didn't have the confidence in the beginning...I'm a late bloomer with everything.  I'm going to print your answers and go over them with him.

Paula, thanks about the info about Tax Tracker and spreadsheets...ways of organization, etc. I appreciate it.

Daphne, congrats on your new job. I don't think I would hire myself as my accountant, though, because numbers and such stuff are not my forte.

Thank you all so much. This is something I wanted to do because I like having everything just right, too, you know, like you I don't want to appear to be hiding anything, but wondered if I was "jumping the gun" to call myself a business.

Dilu Feb 4, 2008

Two thumbs up Paula, great post and you seem to have got quite a few Talkers thinking.  Thanks for doing this!

hugs
dilu

FenBeary Folk Feb 4, 2008

This ones for Chloe, you are right in thinking students are treated differently, I think you should call the Inland Revenue to check with them. Normally if you are an employee and a student you just sign a form to declare this.

The tax year in the UK runs from 6th April 2007 to 5th April 2008, so any income in that period should be declared and expenses incurred deducted in this time also, taking into account stock left at the end of the year

PS HUGE congrats on the your sale, I watch with fingers crossed, way to go G-Town Girl

All Bear Feb 4, 2008

Glad to have raised the issue Dilu.  I do hope it helps de-mystify the 'hobby business' myth.

I think accounting for the IR is actually a really useful tool, aside from the Tax Man's requirements, because it makes it possible for you to cashflow forecast for your bear business and if you keep on top of your accounts on at least a monthly basis (although weekly is even better) it simplifies all things financial, helping you to work out see when your business is going to produce profit - which let's face it, is what we all hope for!  It really does help you to think about how you are spending your bear income, how you are pricing your bears and whether they will be able to produce profit for you, or ( ) whether you are just draining your family coffers by making bears.