Becoming a business and silver wastage...

[Angeltruist]

Sorry, a very novice question :(.ive never had a business so I dont know how the forms look or what I need to know but I'm keeping all invoices etc just incase....

I've been making jewellery as a hobby and also for gifts for family and friends but I have also been making a small collection too.

I have been buying sheet silver and just designing off this but I have a lot of scraps which I don't believe I will ever use.

When filling out Self assessments, is there a way to get relief from wastage of silver, ie buying a sheet of silver, making a couple of pieces but the rest is unusable.
I am worried I loose out buying bulk silver to make a piece and half of it ends up scrap, I don't want to over charge on a piece to recoup scraps, especially if it's not a custom order.

...I'm hoping this makes sense...

[Dennis]

Scrap is usually recycled by casting, fusion, or sending it in to a bullion dealer such as Cookson (see our search box under 'scrap').
You expenses will be the total of bullion invoices for a period of time, minus what you get paid for your scrap.

Don't be too ready to get rid of all your scrap, because most of us root around in our scrap pots for handy small pieces. Once you have a mill, then unpromising bits of thick sheet can be rolled down to make usable thinner pieces. Dennis

[Angeltruist]

Thanks so much Dennis, this has put my mind at rest now,
I've hesitated selling because of the information I thought I had to provide but this makes it seem a bit easier.

Xxx

[Goldsmith]

If you do intend to go self employed and do self assessments for tax purposes, remember that the cost of tools is also totally reclaimable against tax. Also when working out your sale prices add at least a third to the value of each gram of silver you use and this will help towards the loss of metal value when you sell any scrap. So at today's silver sheet cost of £0.66 per gram, I would charge at least £0.90 per gram for the silver used when pricing the item, plus labour cost and profit of course.


James

[Angeltruist]

Thank you so much for the great advice James! This is really going to help me.
I work full time so this will be a part time venture so I'm bamboozled with all the items I need to consider but the thought of losing money has always held me back.
Xx

[pearlescence]

If you do lose money it will be set against your other income.

[Angeltruist]

Thanks Pearlescence!
I wasn't aware this was possible! I'm having a look through the forms I need to complete - a bit more paperwork than I though but seems pretty straight forward.
I will begin the processes this month to start selling soon and hopefully post my work up xx

[Aurarius]

Thanks Pearlescence!
I wasn't aware this was possible! I'm having a look through the forms I need to complete - a bit more paperwork than I though but seems pretty straight forward.

Unless your turnover is very high (at the moment I think the threshold is £79,000), completing your self assessment return should be very quick. Registering for online submission is really the way to go now.

What doesn't help is that some of the questions are worded in such a way as to be impossible to answer. Intelligible use of English is on the wane generally at HMRC. Of course the onus is on the punter to fill in the forms correctly, however unfathomable some of the questions are. HMRC on the other hand can make all the mistakes they like and come through smelling of roses.