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Whilst messing around in this industry you can’t help having a go at all this affiliate malarky so naturally I threw a few sites up there to see what would happen. They aren’t making me rich or anything but are now up to around $700 – $900 a month and increasing – What worries me is the whole UK tax thing especially after reading umpteen times that you should always file things and make sure all your accounts are sorted.
Even though this is a small amount should I declare it and “form a company” – If so does anyone have any advice how I do this? Can I simply do this myself online or through my bank?
What I don’t want to happen is that 1 – 2 yrs down the line I suddenly get a great big bill for unpaid taxes but also don’t want to spend a great deal of time or money organising this all.
Thanks
Alex
Welcome to this side of the fence Alex!!
and congrats!!in my country you have to fill out your tax form every year
(concerning your “normal income”),
and you can declare it under “extra income”.(although when it’s increasing you must set up your company anyway one year or another)
what are those websites anyway???
It’s a wonderful problem isn’t it Alex?
I’m happy to see that those links I gave you are helping you turn a profit.
It does seem like you’re getting to a point where you will have to do something, I don’t know the UK tax laws, but you can probably just file as extra income.
I’d get on to the HMRC and let them know ASAP. If you already have a day job, you will need to file a tax return for your earnings. Also, if you’re earning from networks, they could potentially be in contact with the HMRC anyway. There’s more details here: http://www.workingforyourself.co.uk/
Alex
It’s fairly simple and not as daunting as it sounds. Plenty of people have to do it, expecially those in the highest tax bracket (where you should be submitting a return for any benefits in kind or even to pay additional tax on savongs (which are typically only taxed at the lower rate of 22% by banks).
First thing you will need to do is register with the HM Revenues and Customs for ‘Self Assessment’. If you give your local tax office a call and register they will send you a self assessment tax file number. (Often you will find your local tax office details on the back of your payslip).
You can then register to do your tax online via their website. On this form you will be able to declare your additional income less expenses and pay tax on the profit you make.
Details on Self Assessment can be found here: xhttp://www.hmrc.gov.uk/individuals/tmaself-assessment.shtml
You have just missed the filing return for the tax year ended April 2007. For the financial year April to April 2008 you should aim to submit your return by the end of September but could get it in by the 31st January 2009 at the latest. The online process is far better than the paper based forms (which are detailed and confusing). When doing it online it calculates the tax for you.
Sometime in May your employer should give you a P60, which summarises your income for the year and the total tax paid. You will need this information when declaring additional income through the Self Assessment route.
As a precaution, they say you should put aside at least 25% of any revenue you are earning now to pay for future tax liabilities. This of course depends on your personal income status, but is a rough rule of thumb for earner’s below the highest tax bracket.
I hope this helps but PM me if you need any help.
Buddy
Thanks guys that is really really helpful – To be honest I will probably throw all profit back in anyway but wanted to make sure I was doing it properly as I really wouldn’t want the tax man knocking on my door.
Fonzi – Its actually a different site, in fact if I am honest it is the only one I haven’t actually put effort into so who knows?? Those links certainly helped my other site though so thanks – Am re doing that one at the moment by the way
Elgoog – I will tell you my websites in Cyprus for Spring Break and the Poker Conference – That way you have to come :tongue:
