Celebrating my first stock sale! and question about UK finances...

[aliflack]

Wohoo! Just logged on to my stock agency website last week and discovered that not only had I made sale that day (which I thought was my first ever) but that I had already been another back in June!

Needless to say I'm dead chuffed as I've finally made some $$$ out of this hobby :)
Mind you, the gloss came off when I realised the agency hadn't yet taken off their commission :(

Anyhoo - serious question to all UK forumites who have been through this - any advice on setting up the business/tax side of things? I thought I would wait until I made a sale before I explored this further... so some questions I'd love some help with (and yes, I know I should go talk to my bank/an accountant but I'm not going to get a chance to do some for a couple of weeks at least):

1. Do I need to open a business type bank account?
2. Beyond VAT, are there any benefits to setting myself up as a company rather than a sole trader?
3. Any general advice/tips etc. for handling the business side of things - any good websites etc which offer clear guidance??

Oh, and I have a full time job, so currently pay tax through PAYE. I guess I need to report this as other earned income through the self-assessment route?

Thanks in advance for any help!

[yankees3791]

if you don't mind me asking, how much did you sell each picture for? I had a hard time finding that answer when I wanted to join one

[aliflack]

One was a royalty free image, smallest size, that went for $135 and the other was more like $50 as it was licensed image but again, smallest size and limited distribution... That's before their commission mind you, which is a fairly whopping 55% as they were overseas sales.

You can just go on Alamy's (http://www.alamy.com) website as a buyer and price up the image. The price depends on the licence type, the size and usage - there is no easy way of describing the cost except on a one by one basis.

[yankees3791]

do you find it hard to use or are sales easily made?

[aliflack]

do you find it hard to use or are sales easily made?

Well, the agency handle the selling of images so I find it pretty straightforward ;)

[Webby]

well done on the sale Alastair. Looking at your portfolio link I see you have a few weddings under your belt. You have of course told the taxman about the income earned with those have'nt you? :cool:
If you havent done so, you need to "register" yourself as a business within 3 months. Fines follow if you don't! You also have to pay NIC's, but these can be excused for the first 2 years trading if you meet certain criteria. Check out the HRMC website and have a look through this handy guide http://www.hmrc.gov.uk/leaflets/se1.pdf
Webby

[aliflack]

Heh heh - they're family weddings actually, so no money changed hands!

Looking through Business Link last night, it seemed to suggest that registering as a sole trader would be best for me and that I could register as self employed with the HMRC using an exemption from NICs through the small earnings route (I don't reckon I'll earn anywhere near the ~ £4600 limit)...

What I'm wondering is whether I need to bother with any of this at all, and just submit a self-assessment tax return each year to capture the earnings outside of my day job??

[bildeb0rg]

Heh heh - they're family weddings actually, so no money changed hands!

Looking through Business Link last night, it seemed to suggest that registering as a sole trader would be best for me and that I could register as self employed with the HMRC using an exemption from NICs through the small earnings route (I don't reckon I'll earn anywhere near the ~ £4600 limit)...

What I'm wondering is whether I need to bother with any of this at all, and just submit a self-assessment tax return each year to capture the earnings outside of my day job??

Got to remember this one.;)
Obviously I'm wrong on this, but I figure being able to produce receipts for £6000 in gear would offset the £26.71 profit I "earned" last year :lol::lol::lol:

[Webby]

..not quite extreme as £6000 for gear, but I did buy some stuff...............and the taxman actually paid ME a refund!! :D

Webby

[noxcuses1]

Just wondering with Alamy, How do you get a jpeg file HIGHER than 48MB????

[Gary_Evans]

1. Do I need to open a business type bank account?
2. Beyond VAT, are there any benefits to setting myself up as a company rather than a sole trader?
3. Any general advice/tips etc. for handling the business side of things - any good websites etc which offer clear guidance??

No, but it helps you to keep things seperate from your personal finances.

Sole Traders can pay VAT in the same way as a Limited Company. VAT is based on your turnover, not your legal status.

Speak to an accountant. Then you will get specific advice as opposed to general advice that doesnt always address your specific needs.

[azpix]

what types of images where they.

congrats.

[aliflack]

Got to remember this one.;)

Actually, it was my sister in law, my sister, and pics from my wedding - wanna see the family tree?

[aliflack]

Just wondering with Alamy, How do you get a jpeg file HIGHER than 48MB????

You don't - the TIFF needs to be higher than 48mb, so the JPEG just needs to be big enough to uncompress to that size...

[aliflack]

what types of images where they.

congrats.

Ta! One was a picture of a pair of wedding rings and the other image was a glass made out of ice.

[noxcuses1]

You don't - the TIFF needs to be higher than 48mb, so the JPEG just needs to be big enough to uncompress to that size...

even when I shoot RAW, I don't get more than 28MB(tiff).
What kind of camera you use?

[aliflack]

even when I shoot RAW, I don't get more than 28MB(tiff).
What kind of camera you use?

Used to use the 300D - In Abode camera raw I always just selected the plus 2 size output option to upscale the raw image at conversion stage to something like 5000 pix on the longest edge. That got me the res I needed to pass the criteria.

I now shoot with the 40D so may not need to bother upscaling any longer, wohoo!

[Webby]

Don't get too excited just yet! If you have a 1DS Mk3, I think you get away without uprezzing. I "believe" even a 1DS Mk2 need a little bit! There are loads of threads on resizing on the Alamy forum. Just don't ask anyone, do a search for a previous answer....there are a LOT! http://www.alamy.com/forums/
Webby