Let’s clarify a common oversight or misconception in our industry: the distinction between a hobbyist and a registered business. According to HMRC, anyone earning over £1,000 from self-employment between April 6, 2023, and April 5, 2024, must register as a sole trader and obtain a Unique Tax Reference (UTR). Remember, having a UTR is crucial – don’t confuse it with a UTI, though both can be troublesome!
Another essential consideration for running a genuine business is having indemnity insurance. This is not merely a bureaucratic checkbox; it’s a critical safeguard for you, your clients, and the integrity of the industry. Just as you wouldn’t ride in a car with an uninsured driver, consumers shouldn’t trust a business without liability coverage. However, many believe they are insured when, in fact, They Are Not. Ignorance of the law is no excuse – being unaware does not exempt one from liability or the possible consequences that can arise from not having it (or believing you have it when you actually don’t)
For clarity and to put it simply – IF YOU ARE NOT A REGISTERED BUSINESS/SOLE TRADER WITH HMRC YOU ARE NOT INSURED, EVEN IF YOU ARE PAYING FOR PUBLIC LIABILITY INSURANCE THROUGH AN ASSOCIATION OR ALLIANCE!! This is not a statement we make lightly. This has been confirmed and verified with The Federation of Small Businesses, which clarified: “A business or person that is not properly registered is not legally recognised as a business”
No judgment is passed on anyone’s chosen path; however, understanding the implications is essential. Many individuals in Facebook groups confess to selling balloons as a “side hustle”, often under the mistaken belief that membership in an alliance or association provides insurance coverage. If you know someone in this position, it’s important to inform them of the potential consequences.
Selling balloons involves risk, particularly when interacting with the public, making liability insurance strongly advisable. Misrepresenting your insurance status is not only unethical it is illegal and whilst liability insurance in not legally required anyone in the industry will tell you how important it is especially when interacting with the public, carrying out onsite set ups, using props and backdrops!!
GO International – The UK’s Leading Balloon – Party Wholesaler – where our goal is to set the standard for the balloon wholesale, information, education and training sectors. Our blogs are created and built on experience, in-depth research, and a thorough understanding of both legal and business landscapes. We are here to ensure the longevity and credibility of your business!
