BUYING A FIRST CAR is an expense most teenagers can’t afford, but Bella Weem was determined to find the money somehow.
Now 28, she runs an online business that she originally set up with the end goal of making £1,500.
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In conversation with Heidi Somers about her podcastBella explained how she ‘kind of started [the business] “accidentally” at the age of 14.
The CEO of Origami Owl, a jewelry company, said she wanted to buy a used car online, but her parents challenged her to earn the money herself.
“I saved £270 from my babysitting money and asked my parents if they could match me so I could start a business,” she recalls.
Bella and her parents didn’t think the company would still exist 14 years later, as they wanted to buy the used car.
Read more about additional income
Bella said she feels forever “blessed and grateful” for the seed money that quickly grew into a successful business.
It is an online jewelry store, where customers can order custom-made jewelry.
“It turned into something I could never have imagined,” she said.
“My company went bankrupt. I can compare it to a bowling ball rolling down a hill and I couldn’t catch it because everything was sold out.”
Despite its widespread success, the origins of Origami Owl was not without challenges.
Bella remembers how difficult it was in the beginning to combine her schoolwork with her rapidly growing business.
“I’m trying to balance school and work, and suddenly there are all these eyes on my business,” she said.
“I just thought, ‘What’s going on?'”
She remembers how her first location in a kiosk in a shopping mall sparked interest in the local community.
In the beginning, demand was manageable, but through a smart business move the company really grew.
“I made the mistake of putting my business card in the bag with every locket sold in our store,” she explains.
“This was around the holidays, so everyone came to the mall to make lockets for their loved ones and then send them all over the country.
Do I have to pay tax on my additional income?
MANY people who are short of cash supplement their bank balance with a part-time job.
The good news is that there are plenty of easy ways to make some extra money, you just need to know the rules.
When you are employed, the company you work for withholds tax from your income and pays it to the tax authorities, so you don’t have to.
But if you want to make extra money, say by selling stuff online or walking dogs, you may have to do it yourself.
Stephen Moor, head of employment at law firm Ashfords, said: “Be careful if you earn additional income as this is likely to be taxable.
“The additional income can be classified as taxable income from trade, which can consist of providing services or selling products.”
You can earn a tax-free gross income of up to £1,000 per year through the trading exemption. However, you will usually have to pay tax on this amount.
Stephen added: “You should register for a self-assessment with HMRC to ensure you pay the correct amount of tax.
“The applicable tax brackets and the amount of tax you must pay depend on your income.”
If you don’t file a tax return, you may receive an unexpected bill from the tax authorities later asking you to pay the tax due, plus additional costs.
“And then suddenly I’m at school, I’m taking my test and suddenly my phone rings and I see that they are numbers from all over the country.”
Calls came in from people who had received the lockets for the holidays and wanted to purchase more as gifts for themselves.
Bella remembers asking to be excused from class so she could have business conversations in the school bathroom.
“I would answer as if I were a professional entrepreneur. Because I have a business, I have to be professional,” she said.
She explained that she often had to take orders by writing them on her arm.
“I came home and thought, ‘Mom, [we need] “To fulfill this order and I just hope it doesn’t rub off,” Bella said.
“I remember one moment in particular. I was in the bathroom on a business call and someone flushed the toilet. I thought, ‘Ignore that, what can I do for you?'”
She described her original business model as “messy” as she tried to expand her business.
“I thought, ‘What can I do to get these medallions everywhere?’” Bella said.
She remembers the early days of her business as “wild” and said she “just couldn’t believe this was happening.”
“What I also look back on is that it doesn’t matter how old or young you are. You can achieve anything you set your mind to,” she said.
“I remember a lot of people in the beginning [were skeptical] about a 14 year old.
“I was so optimistic, I thought, ‘I can start a business, why not?’”
She encouraged podcast listeners to “just do it” if they want to achieve a goal.
“A lot of people wait to pursue their dreams, but there’s never a bad time to start,” Bella says.
She is now married and has a one-year-old daughter. She looks back with gratitude on the ‘crazy adventure’ that led her to her current life.
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