Running an affiliate website - where do I stand with regards to tax/earnings?

jmd4eva

Hi,

I run an affiliate website, coming up to the end of the first month. I've earnt about £15 in my first month, which is quite good as I understand! First page of google too, so hopefully it will grow.

I do have a part time job (which I don't earn over the threshold for), and I'm a student. At the moment, all of the money I earn from the affiliate commissions will pay into my own bank account.

I've read on an affiliate forum that people buy Sage software and get accountants and stuff... do I really have to go that far? I don't expect it to make more than £100 a month at the most!

ukbill69

You can make up to £6,475 before tax. See: http://www.hmrc.gov.uk/rates/it.htm

motorguy

ukbill69 wrote: »

You can make up to £6,475 before tax. See: http://www.hmrc.gov.uk/rates/it.htm

Surely it would need to be registered as a business? Its income after all. There may be no tax due, but the HMRC will want evidence of that.

fengirl_2

No, you only register as self employed if you are liable to tax or NIC's. If you earn under £6475 a year, you are not liable and you dont register.

Pennywise

fengirl wrote: »

No, you only register as self employed if you are liable to tax or NIC's. If you earn under £6475 a year, you are not liable and you dont register.

No. you have to register when you start self employment - there is no de-minimis limit. See the HMRC and businesslink websites for more details.

debbie42

I was advised that I should still register as self employed, even though I would be under the tax threshold. I have applied for NI exemption with HMRC.

motorguy

fengirl wrote: »

No, you only register as self employed if you are liable to tax or NIC's. If you earn under £6475 a year, you are not liable and you dont register.

How can that ever hold water? Anyone starting out as self employed wont be at the tax limit, so shouldnt register, but by the time they are at the tax limit they would be told they should have registered when they started the business?

You NEED to register with HMRC for any form or part time / full time business startup.

To the O/P, if in doubt phone the HMRC and ask.

fengirl_2

The OP is not running a business - they are getting casual fees of £15 pm, which they consider to be good money. They are nowhere near the taxable limit and should not register - what is the point of HMRC having files for people who are not liable?
If the OP was opening a 'proper' business, eg opening a shop or factory, investing in stock, machinery, people, etc, then I would say that's a business and needs to register straight away.

debbie42

fengirl wrote: »

If the OP was opening a 'proper' business, eg opening a shop or factory, investing in stock, machinery, people, etc, then I would say that's a business and needs to register straight away.

I'm not doing any of that, nor was I going to be anywhere near the taxable allowance. I was still advised (by HMRC and my accountant) that I should register as self employed, or be liable to a fine.

nzmegs

Absolutely you have to register as self employed as soon as you earn your first self employed income. As the website is set up by the OP and paid into her account it is her income and it should be declared. You will need to fill in a self assessment next year and declare both your self employed and your employed income. You may not have to pay any tax, but HMRC need to know.

fengirl_2

I'm sorry, I dont agree. There is an obligation to notify chargeability and if you are not chargeable, you dont notify. No wonder real taxpayers can't get their issues delat with if HMRC is clogged up with non-taxpayers.
Are you saying that my grandchold who earns £100 interest on her bank account should register for tax?