Question about tax

Discussion in 'Legal Issues' started by mzonas, Apr 12, 2009.

  1. #1
    Hi. I hope I wrote this post in the correct section. I have a question about tax from the developers side.

    If I write a script (lets say CMS or whatever) and start selling it. Lets say the copy of it costs about $10/month or whatever. Do I have to pay some kind of tax? Do I have to reach a particular amount of sales? What tax would be for 100 copies and 10000 copies? Each of them would need to pay $10 so it would be $1000 - $10000 in total.

    Thanks in advance. :)
     
    mzonas, Apr 12, 2009 IP
  2. Colbyt

    Colbyt Notable Member

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    #2
    Looks like you are in UK so my answer may not be correct for you.

    In the US you would be selling a product and all sales would need to be reported as gross income then subtract any R&D cost (amortiized) and ongoing expenses. The remaining balance is profit and on that you pay taxes.

    From other discussions the UK is pretty much the same but the % are different and I don't think you guys have a social security type tax which is a flat 15.3% of net in the states.
     
    Colbyt, Apr 12, 2009 IP
  3. Random Guy

    Random Guy Peon

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    #3
    Of course you'd have to pay taxes! You'd be better off asking this to more local folks unless there's some around :)
     
    Random Guy, Apr 12, 2009 IP
  4. Chercher

    Chercher Peon

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    #4
    You have to declare the income after you make so much with it. I'm not sure what it is in the UK but probably only a few hundred pounds. You'll have to add it to your total income and pay whatever taxes you owe.
     
    Chercher, Apr 12, 2009 IP
  5. C.Whyte

    C.Whyte Peon

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    #5
    Any question about "do I have to pay tax on ___"... the answer's going to be Yes.
     
    C.Whyte, Apr 12, 2009 IP
  6. easter

    easter Peon

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    #6
    Hey,
    I have also no knowledge about the tax of this type,
    or neither i read about this.
     
    easter, Apr 14, 2009 IP
  7. b0mb34man

    b0mb34man Peon

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    #7
    You have to make sure you keep note of everything that you earn and then you report it when doing the income tax. :)
     
    b0mb34man, Apr 14, 2009 IP