Another "what to do about tax" thread - sorry
Discussion
Hi,
I know these must be as frustrating as the "what car" threads over in general gassing but I've done a forum search, tried to work it out for myself and am still confused.
I have a web site which is starting to take more than a trickle of advertising revenue. So far I've just been getting a small payment from google adsense once a month while I've been building the traffic. Now I'm in need of actually selling some ad space to cover costs I'm unsure what the best way forward is, and what my legal requirements are.
As it's just me working on it and it's not really for profit from what I've read my best way forward is to register as a sole trader, keep a record of payments then file at the end of the year, though i'm unsure on how to go about this.
What do other "ad revenue only" site owners do to keep the tax man happy?
Thanks
I know these must be as frustrating as the "what car" threads over in general gassing but I've done a forum search, tried to work it out for myself and am still confused.
I have a web site which is starting to take more than a trickle of advertising revenue. So far I've just been getting a small payment from google adsense once a month while I've been building the traffic. Now I'm in need of actually selling some ad space to cover costs I'm unsure what the best way forward is, and what my legal requirements are.
As it's just me working on it and it's not really for profit from what I've read my best way forward is to register as a sole trader, keep a record of payments then file at the end of the year, though i'm unsure on how to go about this.
What do other "ad revenue only" site owners do to keep the tax man happy?
Thanks
no you haven't asked something stupid
if you are making only a small amount of money and you have another full time job you can declare any earnings to the taxman at the end of the year.
If you are starting a business and the income starts to increase then you must register as a bsuiness with HMRC. This means paying NI contibutions or making a declaration that you are below the earnings limit.
If you are not sure how to proceed contact a Small Business bureau in your area.
In my experience you can spend a lot of time and money setting up a proper bsuiness and meeting all the requirements when the business itself ends up coming to nothing. This will be a waste of time and money.
If you are seriously building a business concentrate on that and get an accountant to do the books. But MAKE SURE THAT KNOW WHAT HE IS DOING FOR YOU AND HOW MUCH HE WILL CHARGE
You are responsible for your Tax affairs not him. You will end up in hot water not him. Part of being a business owner is controlling your finances.
Talk to other small business and self employed people. In my experience a lot of the help and advice from the Government is based at what they call Small Business i.e. less than £10 million!
They have no idea of sole trader problems
If you need any more advice let me know.
if you are making only a small amount of money and you have another full time job you can declare any earnings to the taxman at the end of the year.
If you are starting a business and the income starts to increase then you must register as a bsuiness with HMRC. This means paying NI contibutions or making a declaration that you are below the earnings limit.
If you are not sure how to proceed contact a Small Business bureau in your area.
In my experience you can spend a lot of time and money setting up a proper bsuiness and meeting all the requirements when the business itself ends up coming to nothing. This will be a waste of time and money.
If you are seriously building a business concentrate on that and get an accountant to do the books. But MAKE SURE THAT KNOW WHAT HE IS DOING FOR YOU AND HOW MUCH HE WILL CHARGE
You are responsible for your Tax affairs not him. You will end up in hot water not him. Part of being a business owner is controlling your finances.
Talk to other small business and self employed people. In my experience a lot of the help and advice from the Government is based at what they call Small Business i.e. less than £10 million!
They have no idea of sole trader problems
If you need any more advice let me know.
cbrassington said:
no you haven't asked something stupid
if you are making only a small amount of money and you have another full time job you can declare any earnings to the taxman at the end of the year.
If you are starting a business and the income starts to increase then you must register as a bsuiness with HMRC. This means paying NI contibutions or making a declaration that you are below the earnings limit.
If you are not sure how to proceed contact a Small Business bureau in your area.
In my experience you can spend a lot of time and money setting up a proper bsuiness and meeting all the requirements when the business itself ends up coming to nothing. This will be a waste of time and money.
If you are seriously building a business concentrate on that and get an accountant to do the books. But MAKE SURE THAT KNOW WHAT HE IS DOING FOR YOU AND HOW MUCH HE WILL CHARGE
You are responsible for your Tax affairs not him. You will end up in hot water not him. Part of being a business owner is controlling your finances.
Talk to other small business and self employed people. In my experience a lot of the help and advice from the Government is based at what they call Small Business i.e. less than £10 million!
They have no idea of sole trader problems
If you need any more advice let me know.
Hi Carl,if you are making only a small amount of money and you have another full time job you can declare any earnings to the taxman at the end of the year.
If you are starting a business and the income starts to increase then you must register as a bsuiness with HMRC. This means paying NI contibutions or making a declaration that you are below the earnings limit.
If you are not sure how to proceed contact a Small Business bureau in your area.
In my experience you can spend a lot of time and money setting up a proper bsuiness and meeting all the requirements when the business itself ends up coming to nothing. This will be a waste of time and money.
If you are seriously building a business concentrate on that and get an accountant to do the books. But MAKE SURE THAT KNOW WHAT HE IS DOING FOR YOU AND HOW MUCH HE WILL CHARGE
You are responsible for your Tax affairs not him. You will end up in hot water not him. Part of being a business owner is controlling your finances.
Talk to other small business and self employed people. In my experience a lot of the help and advice from the Government is based at what they call Small Business i.e. less than £10 million!
They have no idea of sole trader problems
If you need any more advice let me know.
I guess the obvious question is what counts as a small amount of money that allows for a simple self assessment. I will continue to have a full time job and income will be in the multiples of thousands, it certainly won't get into the double figures. Self filing at the end of the year sound ideal, as the ball ache of business banking et al probably isn't worth the income at the moment.
Thanks
If you are "trading" (in any shape or size) you are legally obliged to notify the Revenue within three months of commencement that you have started trading.
If your PROFITS from "trading" are below the Small Earnings Exception limit (currently £4,825 per annum) you will not need to pay any self-employed Class 2 National Insurance contributions. However, you still need to notify the Revenue and apply for this exemption.
As you have a full time employment on which you pay tax through the PAYE system, it is highly likely that, on the assumption that your trading activity is actuallygenerating a profit, that you WILL need to complete a Self Assessment tax return and notify the Revenue of these profits so that the correct taxz can be levied and paid on those business profits.
If your PROFITS from "trading" are below the Small Earnings Exception limit (currently £4,825 per annum) you will not need to pay any self-employed Class 2 National Insurance contributions. However, you still need to notify the Revenue and apply for this exemption.
As you have a full time employment on which you pay tax through the PAYE system, it is highly likely that, on the assumption that your trading activity is actuallygenerating a profit, that you WILL need to complete a Self Assessment tax return and notify the Revenue of these profits so that the correct taxz can be levied and paid on those business profits.
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