Hey guys, Do we need to declare adsense earnings to our taxman? If yes how does one go about doing so?
I had hopes that the answer was no I already pay enough taxes, i do not see what the money i get from adsense from an American company has to do with my websites hosted on American servers has to do with our government. If it was my sole income then ok fair play but we already loose 50% due to current currency disasters, what stupid percentage of tax do we also have to pay on it
indirectly yes. Just look at Abu Hamza, he is raking in benefits of £1,030.65 a week, and lives rent-free in a £350,000 house in London, which would cost £600 a week. His Wife also receives benefits totalling £22,393.80 a year.
You should pay tax. Essentially, you're running a small business, separate to your day job, so you'd fill in a self assessment form. Odds are that you might not get caught, but I guess it depends how much you're earning and if you want to risk it.
But its not a business, as its not a registered bussiness. And i am not selling things either. They are paying us to use something we have (page space/whatever) Getting different feedback from different people
Do you pay INCOME TAX in the UK ? Because if you do, any source of INCOME (profits) would be taxable. I believe the tax laws in the UK is the same as those in Singapore since we derived most of our laws from the UK anyways. What is important as to where you be taxed would depend on your tax domicile, meaning where were you located when you earn the income. If you are located in the UK when the Adsense income is earned then you be subjected to UK tax laws and legally you will need to declare the Adsense income to your UK tax authorities. Of course, your grievance against paying more tax and the devaluation of the US dollars is understandable but they are essentially not an issue as to whether you should declare the adsense income or not. If they are small then probably that does not amount to a lot. I would think that devaluation of the US dollars has no bearing since when you receive payments from Adsense, it would be converted to the UK Pounds. So just use the UK pounds as the currency of declaration. In reality, you could take the risk and wing it and not declare the income and may get away with it but legally I cannot advice you to do that since it would inevitably be against the law. Of course, the other legal option would be to set up a legal presence in the US and have all the Adsense income channelled there then since it is a US company earning the Adsense income, you will not need to pay taxes in the UK, you just need to declare them to the US tax authorities and pay the taxes there instead. I supposed that is not your intention.
Are your overall earnings above (approximately) £5300? If so, then YES you should be paying taxes. And if you're making over approx £100 altogether (including your 'day job'), then you should be paying National Insurance on top, too. Ironically enough, the one person that made an idiotic statement about terrorism is from Nottingham. Not that I've ever heard of terrorists living there before :majorlyironicface:
I went self-employed as it was easier than trying to fight through the red tape when all factors were weighed up. Part of my income is from adsense and at the end of the tax year, I will fill in a self-assessment tax return where my net profit will be subject to tax. In this instance, I claim expenses such as webhosting that are offset against my annual earnings as a business expense. There are other expenses that can be considered as well that could potentially lower you tax liability. However, if you already have a full-time job and are paying tax and national insurance through your employer, you would need to contact the tax man to find out exactly how you account for your adsense income. The tax rate is likely to be 20% - but I do not know whether they would collect it via a tax repayment schedule at the end of the tax year or deduct it throughout the year. You will need to speak to the tax man as it could affect the rate of tax you currently pay as an employee. I found speaking about Adsense confused everyone so I simply said it was variable monthly income received from online advertising.
there are corruption in every government but it is a bold statement to think that govt. funds terrorism therefore we should not pay tax. i'm canadian and we pay lot more tax than people in the U.S or lot of other countries. but that doesn't make me upset. i know where my tax money goes. we have social assistance program here where people without job or people who are unable to work get welfare, unemployment insurance for those who get laid off or loose the job somehow, there are govt housing for people with less income (tho limited and it takes years in the waiting list to get one), public education till kids graduate from high school, cleaning the snow and salt the streets few months a year during winter, public medicare, just to name a few. when my wife was pregnant, she had to go to her OBGN for routine checkup which was weekly at the later stage. all the lab tests over the course of 9 months including the doctor visit and delivery was 100% free. when my son was born, his paediatrician visits including the routine vaccines were also 100% free (each vaccine costs $100+ and there are quite a few that he had to take till he was 18 months). i could just go on but i think i made myself clear. as i see where my tax money goes and what i get in return, i have to say that i myself don't mond paying taxes. cause i know when i'm in trouble , our social system is there to help.
Thanks for the input guys. Its not that i flat out do not want to pay taxes! I pay taxes on my "day job", i pay taxes to get to my day job (petrol food blahblah) I come home i use my money which has already been taxed to buy servers in the USA, i earn some money via adsense I lose 50% due to currency, then if what Ganceann says is true (20% tax) then another 20% goes to the goverment. There for i get a whole total of 30% of my adsense earnings!! so i make $10 i get $3. Not worth the effort! Maybe actually registering a business is the proper way to do this, therefor you can write of some things for business use and get them tax free if i understand?
You don't get them tax free... if they are legitimate business expenses you would still have to pay the money for the product/service etc. Although you can count mobile phone expenses as a business expense (provided you use it for business and have receipts for any vouchers or payments made). Just as an example, if you had £10,000 turnover for the year (and didn't have another job - so your only income is from self-employment). Business Expenses were: webhosting - £500 Travel - £250 Office costs - £500 Advertising - £1000 Insurance - £200 Total = £2450 £10,000 - £2,450 = £7,550 You would be taxed at 20% of £7,550-personal tax allowance (think it goes up to just over £6000 in september), therefore your tax liability would be something like £310 for the year. This was just written off the top of my head, so hopefully the figures balance but would give you an idea of what to expect if you getting money from only self-employment. If you already have a full-time job, then additional income could be taxed at 2nd job income rate (it might be 25% or the emergency tax bracket). You would really need to speak to the local tax office or an expert to find out how it would be treated. It is awkward to try and explain on a forum, but if you checked through the revenue website: http://www.hmrc.gov.uk/ (you might be able to find some more relevant information). This is taken from the site:
No he's not he's in prison - and he's been in prison since 2004. And after he's finished his prison sentence in the UK he'll more than likely be deported to the US to stand trial there on terrorism charges.
Do you think Google passes on their payment details to the UK taxman? Has anybody cashed their cheques and then later on had a letter from the taxman demanding money?