Do I need to be taxed or something for this?

I live in England, and I am creating a website for someone else who lives in England. It's just a manga community where people can upload manga, view manga and comment or fav. We've decided on me getting £300.00 for this, so he will be sending like £305.00 or something via PayPal so I can get the correct amount. Is there any legalities I need to know before he pays me?

 

In the States you would need to report the income and pay at the end of the year.

Not a real good answer so if you don't get a better reply I suggest you add Britan or GB to the title next time you post. That way you might get a reply from some one who really knows the answer.

 

Thanks for the reply, I should have included that in the title :/ . Anyone else know for sure?

 

Bump, this is really important.

 

of course you are supposed to pay tax as its called income right?

but at the end of the day its not a huge amount of money so the govt is not going to come chasing you..

the other thing to consider is if you are both in the UK then you probably needed to add something like a VAT or GST for whatever its called in the UK..

also the tax amount you pay is dependant on if you are registered as business, company, sole trader etc.. and if you do decide to pay tax than you can also claim some deductions also..

 

Just wondering, this is probably a stupid question, do you need to be taxed if your under 18?

 

every country is different.. in Australia you still have to pay tax no matter how old you are but only once your income is more than $6000.. its mainly for child actors and models of tv etc who make 40 - 50 K / year..

 

Actually you only need to charge VAT if your turnover is above a certain amount... you are allowed to earn up to £5000 before you have to pay tax, but you must declare your income. It's easiest to do this via the self assessment at the end of the tax year. (i'm guessing you're working as a sole trader)

 

Right there. If you are registered as a sole Trader, then for any income you get , you will have to document it and if it's through paypal then you can print the reciept. Normally you can tender this earning through Self Assessment usually at the end of the tax year which is usually April.
Also if your income is less than £60,000 yearly then you may or may not charge VAT but if you do you will get the money back at the end of the tax year.

Also do not forget to record any expenses you make concerning the business you registered. This will help you reduce the amount of tax you have to pay on your profit.

 

Hmm.. ..well I'm under 18 so hopefully that helps me out. Also, the other guy suggested sending the money as a gift, in which case VAT is not concerned.

 

That's called tax evasion, and if frowned upon... are you in education? that will effect if you have to pay tax or not too...

 

Last year of school, so I'll be 16 at the end of the year.

 

As long as you're in education, you don't have to pay tax on that ^^ So basically, right now you're fine. However, things will change when you leave education

 

Bumping this as I'm getting back into freelance. I'm 17 years of age now, will be 18 in a couple of months. I am in full time education (at a sixth form college). Just want to make sure that I still pay 0 tax and can take payments as a gift via paypal?

 

I think you won't be paying taxes just yet. Until you leave education and get working then you'll have to pay taxes I think.

 

keep a note of all your expenses - if they ever do come looking for a slice, you can offset all your expenses against it. Your computer alone probably offsets the entire fee.

 

What do I need to note down exactly? Also, how does my computer help me?

 

Yes if you earn over your allowance.

You should not be taking earnings as gifts - if paypal should find out they will cut you off at the knees.

This poster is an I thinker which is a good indication that you should take no notice of what they say. Their reply clearly confirms that they have no idea what they are talking about.

Be aware that if you start working in the same tax year as you were doing anything that was under you allowance as a student it will be added to your earnings for that tax year.

You need to keep records of everything you buy in connection with and is used for your work.

Your best bet is to a) go to you local CAB and ask them with the what if type of question rather than the i have been doing style.
or b) go to the uk tax web site http://www.hmrc.gov.uk/incometax/ where you will find out exactly what you are allowed (your allowances).

You will also need to look at vat and at what level of earnings you need to charge and pay it. ( http://www.hmrc.gov.uk/vat/ )

Note that VAT is chargeable on gifts so that is not a back door.

The BEST advice I can give you though is to go see an accountant if it looks like you have to pay VAT or Taxes.