Tony, I don't know if you are aware that the tax people regularly trawl crafting sites as they are clamping down on what they consider as tax dodgers. As various different taxes etc are a big issue at the moment perhaps those who haven't registered need to be careful what they say in what is essentially a public forum?
Incidentally there is a petition set up requesting that the government issue cards for those that have registered. It can be found here if anyone feels strongly enough about this to sign
http://epetitions.direct.gov.uk/petitions/42909]
Pete
I saw this post a few days ago and nearly replied in the same vein as Peter - this is an open forum and could be read by anyone. We actually have a VAT inspector in one of the club's where I demonstrate! He's been quite useful to me, but at the end of the day, he will do his job based on information, no matter where he got it, and tax evasion is top of his list.
Going back to this threads main topic, it does not matter if you have registered yourself as self-employed or not; if you are REGULARLY selling anything and making a profit, the taxman WILL be interested. In fact, if you are doing that but haven't declared it, you could be in worse trouble.
I don't know the case of the beekeeper referred to by Tony but he probably got away with it by showing his business was running at a loss, but he still had a 'business', and he would have needed business records, (sales, expenses, costs etc.) to be able to prove his situation.
I don't want to deter anyone from selling their work. It is very satisfying, but if you have any concerns speak to the Inland Revenue first. They are VERY helpful and not the ogres they are often perceived to be.
Hope that helps,