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

sandiep · 30 April 2010 at 4:14PM

fengirl wrote: »

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?

No, because the bank completes and submits to the IR statements of interest, and any tax deducted, annually on her behalf.

motorguy · 30 April 2010 at 6:55PM

fengirl wrote: »

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?

So say this affiliate site takes off, and suddenly its making £200, then £500, then £1000 a month. Or say the O/P comes up with an extension to their site that brings in decent cash, WHEN are you saying they should register? Next month? the month after?

Because the HMRC website is VERY clear that all new businesses should register AS SOON AS THEY START TRADING, not at some point down the line when they *might* be at some tax threshold.

motorguy · 30 April 2010 at 6:57PM

fengirl wrote: »

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?

I never had any problems talking to / dealing with HMRC (other than they made me give them money) when i was running my own business.

Also, i never have any problem ringing them with a PAYE tax query, in fact they've been very responsive and helpful.

What they do say is IF IN DOUBT, CALL US.

You are risking the O/P getting a heavy fine at some point in the future.

motorguy · 30 April 2010 at 7:00PM

fengirl wrote: »

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?

The more i read your comments, the more stunned i am.

Should traders NOT register with HMRC because they *might* only be making £100 a month OR they *say* they're only making £100 a month?

If you have an income relating to a business you are OBLIGED to let the HMRC know. It is not at your own discretion.

fengirl_2 · 30 April 2010 at 8:38PM

I agree that anyone in business needs to register as soon as they start to trade, but the OP is not in business - they are receiving a small amount of casual fees which they are saying is 'good' at £15pm - this is nothing like a business.

Pennywise · 30 April 2010 at 8:55PM

OP said that they'd set up a website that is making a profit - that's trading. The "badges of trade" are present. Therefore they need to register as self employed as soon as they start. This thread is giving very misleading info to the OP and other readers. If Fengirl is so convinced this isn't a "trade", how about a link to HMRC webpage where it says that registration as a self employment isn't required?

motorguy · 30 April 2010 at 10:12PM

fengirl wrote: »

I agree that anyone in business needs to register as soon as they start to trade, but the OP is not in business - they are receiving a small amount of casual fees which they are saying is 'good' at £15pm - this is nothing like a business.

"and may well grow to £100 a month"

GettingItRight · 30 April 2010 at 10:18PM

Put that £15 into a purchase of a decent bookkeeping book, simple

I would imagine ... if your earnings - from the site combined with any other earnings you may have - total above the £6475, it would be an idea to play it safe and register.

If you have doubts why take the risk on £15 a month? Hopefully your site will do more, but there are no guarantees of income. This though is coming from a guy who made £0.25 in the first month of starting a blog haha :cool:

Good luck with the site!

martindow · 1 May 2010 at 10:58AM

I think we are making heavy weather of this. OP I would contact HMRC to say you are now getting self employed income and you are covered. You will not pay any tax if you are under the threshhold but if it takes off you may well do.

Also start keeping receipts and noting expenses carefully. You are only liable for tax on profit, not turnover, so it is in your interest to set off as much as you can justify. I find that all of the little expenses tot up and unless you note them down at the time they can get forgotten.