Ltd Company

jozvaldo

Could somebody please answer the following for me please:-

If I am selling via an affiliate website for a friend -what are the tax implications for example......

I earn £500 in a week of which I am keeping 20% for my trouble and sending the remaining 80% to my friend (who will be invoicing me by the way) - I assume that by doing this I will need to register as a ltd company and pay corporation tax (as I only want to pay the tax on my 20% and not the full 100%

Answers on a postcard - many thanks :-)

HappyMJ

You can do it as a sole trader simply register as self employed with the HMRC and fill out a self assesment tax return. Don't forget to deduct all your expenses even a bit of electricity is OK and phone calls to your friend.

Annisele

The profit in your example would only be the 20% (less expenses). Regardless of whether you're a sole trader or a limited company, you only pay income/corporation tax on profits - so you wouldn't be paying tax on the 100% in any event.

(VAT works differently, but it sounds like you'll be under the limits).