My ad money is being paid by paypal, i havent given the ad programs any proper id, tax no.s. I've read up on the UK law and within the 3 month deadline informed HMRC (Uk tax office) that effectively i was self employed, running a website. I've recorded all my income I've recorded all my expenses My question is what are other publishers getting away with using as deductions. My earnings atm are less than what i consider to be my deductions so no tax to pay. Atm I'm deducting - Broadband internet connection (because without it I have no website) [i need a fast 2mb connection to downloading my databases and such ] - Hosting fees - Domain (and private registration) fees (obviously these can only be deducted once) Anything I'm missing the trick with that I could be deducting? - Electricity? [at home!] - Laptop [would be nice ]
You've missed the BIG things: portion of council rates and other expenses for home office; portion of electricity account; phone calls and postage expenses for business; portion of motor vehicle use, including depreciation, for business use; office expenses such as stationary, depreciation (not capital costs) on furniture, computers, etc... and etc, etc. Get a good accountant and go for the maximum. Welcome to the world of the self-employed.