Hi, I have a question for UK users... At the moment I'm making around $500 a month from my web endeavors. I'm trying to scale up my efforts and have started investing in Adwords advertising. Currently I'm charged 40% tax on my adsense income as I have a full time job as well. How will the tax work if I open up a small business and pay the Adsense income into that? We it be advantageous in terms of tax? Eventually I'm going to want to withdraw money from the business but don't know how the tax for that would work either. fcmisc.
not really necessary, since the adsense income, and your small business income will be on the same tax return. If you file seperate returns, then it would be at your advantage to tie the adsense income as busienss income to match it against direct expenses incurred in order to make the income.
Hi swordfish, Thanks for taking the time to reply. If I don't put it into a business, am I still able to match expenses (i.e. web hosting, broadband etc...) against my adsense income? Kind Regards, fcmisc.