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Needing help. Am I a hobby, or a small business? Selling custom craft

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Hi there, 

I do hand embroidery as a hobby in my spare time. I have an Instagram with a creative name relating to my hobby and also have a little logo type picture with the same name.  However just recently I have Been told that people love my work and would love to purchase and ask for custom pieces. I am more than happy to do this as I had been trying to think of something to do in my spare time and as a stay at home Mum I thought it would be a good opportunity to bring in a small amount of money. I wouldn't be selling these pieces at a huge profit if any at all, I would charge for the cost of the supplies and would add on a small amount for any extras. I haven't worked out how much exactly yet. I have been told that it would be classed more in the hobby side but I really want second and even third opinions. I would hate to be selling my items to discover that it's technically a business no matter how little money is made. If anyone could please help me out that would be great because I am so confused with the whole thing.. 

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Most helpful response

ATO Community Support

Replies 0

Hi @Alannah2,

 

Good idea posting for help on this one it can be a little tricky sometimes.

 

Unfortunately I won't be able to tell exactly what to classify your activity as, but I can provide some resources to help you determine that. I would start with the Are you in Business? section of our website. There's a handy video on there that's a good place to start with a bit of info underneath. If you're still a bit unsure I would go have a read through the Difference Between a Business and a Hobby page on the Business.gov website. They go into detail on the differences, but they also provide an online tool on the page that helps you find out if you're a hobby or business based on your responses.

 

Hope this helps, let us know if you have any more questions Smiley Happy

 

 

 

 

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Alannah2,

 

Good idea posting for help on this one it can be a little tricky sometimes.

 

Unfortunately I won't be able to tell exactly what to classify your activity as, but I can provide some resources to help you determine that. I would start with the Are you in Business? section of our website. There's a handy video on there that's a good place to start with a bit of info underneath. If you're still a bit unsure I would go have a read through the Difference Between a Business and a Hobby page on the Business.gov website. They go into detail on the differences, but they also provide an online tool on the page that helps you find out if you're a hobby or business based on your responses.

 

Hope this helps, let us know if you have any more questions Smiley Happy