How do you make extra income from your backyard or farm?

[ina]

From what I understand the rules for jam are a bit complex. They did want to ban it without the relevant food hygiene certificates, but the WI complained! As a result the rules were changed (ie, made even more confusing).

That's what I thought... They always sell jams at local events (coffee mornings etc) for charity, and they do seem to get away with it - maybe because it's a one off and non-profit. I wouldn't risk selling it to outsiders, though.

I prefer to swap my jam... A friend of mine has loads of fruit, but not the time to make jam. Easy solution!

[Annpan]

I went looking through the internet a few months ago on the rules (speciffically for jam) I have just tried the WI website, and there is nothing there either.

I couldn't find any definitive answer, yes if you are setting up a business you need all the paper work, hygine tests, etc, etc... I think that if you wanted to sell through a shop or at a farmers market they might ask you for relevant paperwork. But it seems there is a grey zone if you are making cakes, jams, etc from your own produce, in your own kitchen say a few times a year.

I wouldn't go suggesting to anyone that they should try making extra money by selling anything edible - it is a minefield.

I had always thought (I don't know why) that it was OK if you label things with 'homemade' and if you aren't making lots of money on it (There is an amount you are allowed to earn without declaring it, I think it is £4000 'ish).... oh... it is all so confusing

[Thomzo]

Annpan
If you're referring to the amount of money you can earn without declaring it for tax then it is your personal allowance. This varies each year and depends on your personal circumstances. At the moment the standard personal allowance is £5,225 per annum but this includes all your income so any work you do has to be included.

If you are selling anything then you should register with HMRC as self-employed within 3 months. You will have to pay self-employed national insurance and then work out the tax you make on the profit. But that does mean that you can deduct any costs of making or growing what you sell. If the property has a mortgage you can even include some of the interest you pay.

I bet most of us would find that we're not actually making much profit if you think about all the costs associated with raising chickens or growing veg.

Zoe

[DominicJ]

I'm reasonably sure you can sell eggs "over the gate" without much hassle. However you cant sell them with the cardboard egg boxes, you cant call them organic and you cant grade them, ie call them medium or large.
The income would have to be declared for tax, which is easier than it sounds, unless you want to claim the food as a tax deductable cost.
But thats probably an exercise in making trouble for yourself unless you have 50 chickens and its a real business

[Annpan]

Annpan
If you're referring to the amount of money you can earn without declaring it for tax then it is your personal allowance. This varies each year and depends on your personal circumstances. At the moment the standard personal allowance is £5,225 per annum but this includes all your income so any work you do has to be included.

If you are selling anything then you should register with HMRC as self-employed within 3 months. You will have to pay self-employed national insurance and then work out the tax you make on the profit. But that does mean that you can deduct any costs of making or growing what you sell. If the property has a mortgage you can even include some of the interest you pay.

I bet most of us would find that we're not actually making much profit if you think about all the costs associated with raising chickens or growing veg.

Zoe

Thanks Zoe It is always handy to have an accountant around

[becks77]

All these rules are designed originally to help and keep us healthy however I agree they are really infuriating and have put me off selling anything at the gate its just not worth the hassle,
However what I have discovered is you can barter with all the produce with friends and relies, you know .. a dozen eggs plus lb of courgettes for a couple of hours baby sitting etc.

[ina]

However what I have discovered is you can barter with all the produce with friends and relies, you know .. a dozen eggs plus lb of courgettes for a couple of hours baby sitting etc.

Oh yes. And this is going so well this year that I constantly have some nice veg in the kitchen... With hardly anything from my own garden!

[possum]

I'm reasonably sure you can sell eggs "over the gate" without much hassle. However you cant sell them with the cardboard egg boxes, you cant call them organic and you cant grade them, ie call them medium or large.

This sounds a bit silly - surely to get round this you sell the eggs and offer free re-used egg boxes, after all supermarkets do this with their cardboard boxes to put your shopping in. As for organic in NZ (and I think the UK - I haven't kept up with regulations there) you cannot call them "certified" organic, but you can say they are fed on organic food or in the case of fruit and vegetables "spray free". It is stopping short of saying you have a certificate but letting your customers know the manner in which they are raised/grown.

[DominicJ]

I'm not completely certain, but I'm pretty sure that being paid in goods still raises a tax issue, its unlikely anyone will ever care, but its probably not legal.
2 hours babysitting is £2.50 in NI employer contributions right off the bat.

[Annpan]

No, there is no issue in bartering, as long as you are not doing it specifically to avoid tax, that is, in which case it is still tax evasion.

[ina]

If they started charging for bartering, they'll have to charge for birthday presents, too: I give you a present, you give me one; so we've bartered, haven't we?!

[possum]

I'm not completely certain, but I'm pretty sure that being paid in goods still raises a tax issue, its unlikely anyone will ever care, but its probably not legal

In the uk I was involved with LETS )local exchange and trading (somerthing or other I forget the last word) a bit like a baby sitting circle - you earn points for supplying a service or product. A friend was also involved in this, she being ultra squeaky clean money wise asked if this barter system would incur tax, she was told as long as the service/product you were offering was not your main source of income, then no it was not. As an aromatherapist/masseur if she offer that, it was taxable: if she offered lifts to someone it was not.

[hamster]

I thought I read somewhere that the high temperatures reached when making jam meant the rules were less stringent as for selling other things but that could be rubbish.

[contadina]

I sometimes think the UK is the only country who pays heed to such laws. Whenever anything is in season over here there are wholesalers who pop up all over town to buy your excess olives, cherries, figs, almonds etc. In Italy and many other other places in Europe laws such as these are generally seen as guidelines - feeding chickens kitchen scraps, killing and butchering your own animals on site and selling your excess to neighbours, friends and wholesalers is the norm. If a law makes no sense then everyone ignores it.

[clare]

Well Contadina that makes sense to me and I can proudly say I sold my first 2 Dozen eggs at my gate this weekend for £3 cash and it will go towards feed and like many other gate sales I'm sure no one is really bothered about a few small sales but I will enquire about jam before I sell it but as not much can live at such high temperatures I'm sure a few jars of jam won't cause a problem......