Hi guys, Just a quick one, i am based in the UK and have had a couple of payments from CJ, this month i am on for 2k and was wondering if i need to pay tax on this, if so i would appreciate it if any one from the UK could tell me how they go about doing this. Thanks
Yes you have to pay taxes on it! I would definitly seek a accountant because your situation (financial) maybe totally different than mine.
No getting away from it! Yeah, find an accountant! I am not sure how your tax bill is calculated if you have another, regular job, but the simplest way if this is your only source of income would be to register self-employed. That way paperwork is kept to a minimum and you just have to file a return of some sort at the end of the year. If you are full-time employed besides this income stream, then I am not sure exactly what happens but I imagine you have to declare the additional income on some sort of return. Either way, I would NOT recommend just pocketing the commissions and hoping you get away with it - you know what, you probably will, but then again you might not. Not worth the risk.
I have been getting away with affiliate commission for over 2 years, how the hell are they meant to know? Im not silly enough to have large weekly deposits into one account but I have it deposited to my accounts abroad (multiple countries - all tax free havens If you want to get away with it I highly suggest not having checks larger than £1K (AT MOST) to your bank account, otherwise....expect mr tax man on the door asap.
Go to http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm and register as self employed. They'll send you some useful information about record keeping, expenses etc, and how to fill in the tax return. You can do the tax return online and it's fairly straightforward, as long as you keep good records.
I think self employed tax form is only for the people who doesn't working online, but maybe it is the rules. I guess there will be a different amount of tax that you have to pay, depend on you salary.