Tax question

[Glassman]

Ojc said:

If a website is offering hosting for your personal pictures, but you have to pay a fee to use this function and therefore providing a service, would the owner of the website have to pay tax on the money that they are recieving from the income the website is generating? Say 1000 members had been paying £10.00 a time over the past 5 years for a yearly renewal?

Sorry for what might seem a fairly basic question but my tax knowledge is basic to say the least.

You are new to this aren't you? This is a fish and chip shop.

[WD*]

He should be declaring the income and paying tax if it goes over the threshold (either alone or combined with other income)

[Vixpy1]

Glassman said:

Ojc said:

If a website is offering hosting for your personal pictures, but you have to pay a fee to use this function and therefore providing a service, would the owner of the website have to pay tax on the money that they are recieving from the income the website is generating? Say 1000 members had been paying £10.00 a time over the past 5 years for a yearly renewal?

Sorry for what might seem a fairly basic question but my tax knowledge is basic to say the least.

You are new to this aren't you? This is a fish and chip shop.

No its not, its a newsagent

[Glassman]

Vixpy1 said:

Glassman said:

Ojc said:

If a website is offering hosting for your personal pictures, but you have to pay a fee to use this function and therefore providing a service, would the owner of the website have to pay tax on the money that they are recieving from the income the website is generating? Say 1000 members had been paying £10.00 a time over the past 5 years for a yearly renewal?

Sorry for what might seem a fairly basic question but my tax knowledge is basic to say the least.

You are new to this aren't you? This is a fish and chip shop.

No its not, its a newsagent

the two go hand in hand.

[Vixpy1]

Glassman said:

Vixpy1 said:

Glassman said:

Ojc said:

If a website is offering hosting for your personal pictures, but you have to pay a fee to use this function and therefore providing a service, would the owner of the website have to pay tax on the money that they are recieving from the income the website is generating? Say 1000 members had been paying £10.00 a time over the past 5 years for a yearly renewal?

Sorry for what might seem a fairly basic question but my tax knowledge is basic to say the least.

You are new to this aren't you? This is a fish and chip shop.

No its not, its a newsagent

the two go hand in hand.

Codswallop

[WD*]

Vixpy1 said:

Glassman said:

Vixpy1 said:

Glassman said:

Ojc said:

If a website is offering hosting for your personal pictures, but you have to pay a fee to use this function and therefore providing a service, would the owner of the website have to pay tax on the money that they are recieving from the income the website is generating? Say 1000 members had been paying £10.00 a time over the past 5 years for a yearly renewal?

Sorry for what might seem a fairly basic question but my tax knowledge is basic to say the least.

You are new to this aren't you? This is a fish and chip shop.

No its not, its a newsagent

the two go hand in hand.

Codswallop

Do you want fries with that?

[Ojc]

Not quite sure whats going on here, but got the reply I was after.

Good night to you all.

[Eric Mc]

Sensible answer - if you are a UK tax resident and you are running an operation with a view to making a profit, you are defined as "trading" and you should notify HMRC. It doesnt matter

a) whether the trading surplus takes you over any thresholds or not

b) whether you actually make a profit or not

If you are trading and making profits below the National Insuranmce threshold (£5,200 per annum) you still need to notify the Revenue but you shoud apply to be "excepted" from having to pay the Class 1 Self Employed National Insurance Contributions.