I have a client who trades as a sole trader (flooring contractor) and pays higher rate tax.
His main hobby is diving and I have just discovered that he earns about £4 000 a year collecting items from a local lake where he dives and selling them on eBay or to local shops.
The items are mainly lost golf balls that find their way into the lake from the local course – but he has also found jewellery items as well.
One particular ring was worth £1 000; he thinks a disgruntled wife had probably thrown it into the lake after an argument with her husband.
He maintains that the income is private and is not relevant to any business activity because he is not buying the goods.
Do readers agree?
I am particularly anxious to get this right because we are keen to keep his...
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