UK Tax question

Hi Guys,

any advice, I'm an affiliate. All my earnings are paid by Commission Junction and direct Merchants.

What should I do about Tax (UK based).. do i delcare these earnings, if so what as?

Any affiliates out there, let me know what you guys do. Also i'm earning 4 figures a month.

L

 

I don't know the exact details of UK tax law, but if you are earning 4 figures a month I am very certain you would have to pay taxes on them. Earning online is no different then earning through a normal job. My advice is to contact a tax specialist or lawyer in your area.

 

If your banking that its a wonder your bank have not asked you are you running a business.
Then the will say ""You need a business account if you are"

Then I would go see the tax man

 

You should notify them definitely, or the bank will get suspicious.

 

You can register as a self-employed and declare your income. Taxes are less than if you register as a business.

 

If you are UK based. You need to register as self employed with HMRC. This is normally done within 3 months of commencing trading. You will need file a self assesment tax form every year. This declares all income and calculates your tax (if done online).

You do not necessarily need a business bank account. If helps to keep business earnings and expenses serperate from personal expenses but it is not a legal requirement. You could just open a second account and keep all business transactions through that.

If your earnings are minimal and in addition to your existing employment then avoiding self assesment and payment of taxes is simply a gamble. How lucky do you feel?

Hope this helps.

 

complex laws in your country . There is no need of tax for a samll amount of income.
But four figures is a large amount of money.

 

If you dont declare your income and get caught the penalties they (revenue and customs) will apply are MASSIVE.

 

i disagree i have business account with alliance and leicester and also work full time, when ur turnover is over 60k then u have a problem you have to register for vat until that time i think u can get away with it

 

If you are working full time then I would imagine that a certain amount of income like this would slip under the tax man's radar.

But if this is your sole income then pay tax. You'll get a way with not paying tax - maybe even for years - but eventually you'll be caught out or you'll realise you need to pay taxes for all sorts of reasons... then you'll be paying catch up as the tax man will demand the unpaid taxes from the time gone...

 

Thats really bad advice IMAO.

UK Tax
Three choices

1. Do nothing. Risk of getting caught, probally minimal, unless you piss off a neghbour etc. Taxman can't look at bank statements without a good reason.
12 K a year, thought. If commission junction get audited, then there is an excellent chance you can het found.
2. Go legit. Tax is about 20 - 30 % The bummer is that if self assment means keeping records etc, and that YOU WILL HAVE TO PAY TAX IN ADVANCE AFTER FIRST YEAR
3. Launder the money

 

I agree. Very bad advice. You pay tax on your earnings - end of story. Try to avoid tax at your peril. You may get away with it for years, forever, or you may get caught next week.

OK - the reality is that they make you pay up unpaid tax and throw in a penalty of a few hundred pounds, but they could prosecute you!

Its your choice.

 

If you are earning money, you need to pay tax on those earnings, regardless of source.

 

I do the same sort of business in UK.
The main things - all incomes should be declared, but taxmen will not interest in your before certain amount of money. Let say around £1-2K per month, but this is a risk and I don't recommend to take it.

Go to talk with any accountant and they will advise you. This is the best option.
For example in my case I've got between 1 and 2K a month from the internet and according to my accountant my company is in a deep financial crisis => taxes==0
This is only because I've got limited company and all my living expenses are treated as business costs.

For more details feel free to PM me.

 

hahahahahaha, thats brilliant mate.

 

I wish mine was a little more constructive

 

dude whose your accountant cos i think i may need to change my accountant now

 

Very dangerous ground. You can declare a % of your rent/mortgage, gas, electric, phone etc, but not all of it. For example - if you use 2 rooms out of 6 for your busijness then you may be able to justify 1/3 as business expenses. If your accountant has not advised this then be prepared for a tax bill in the future. I believe that this can also lead to capital gains tax.

 

You are right. I din't declare all my living expencies as business spend. My living expencies are bigger than I've got from the internet and accountant I hope do everything correctly.

 

You are always required to declare your earnings.

First off, get an accountant.

He will get you into a legal postiion without worrying about the past

Second, he will get you on the right road, get you set up as a company etc,

Third he will audit your acconuts for a few hundres a year, saving you a bugger of a job.

Livnig expenses cannot be claimed against your business, only a percentage canbe claimed when it has a business use (Ie your living room is used 50% business 50% home, you can claim 50% of your rent for that percentage of your house as expenses BUT if you do that you may be legally obliged to pay business rates on your place, this is usually around 5x normal council tax levels.

What you should claim is for anything business related you can get a receipt for, printers, phone bills, maybe even a new computer you can claim as a business expense and therefor saves you a load off your next tax bill!