Self-employed or just pay the tax?

pargeter

I retired some time ago as a self-employed professional photographer and am now a pensioner.

After several years taking pictures for recreation, I started a YouTube channel reviewing equipment. This led to me writing e-books books on various cameras via Kindle.

Over the course of three years or so, this has started to bring me in an income of £5 - £6,000 a year in advertising from YouTube and book royalties.

Up to now, I've just declared the extra income and paid tax at 20% on it all. I have to buy the cameras and equipment I review and write about and then I generally sell on on eBay, inevitably making a loss on the equipment.

Could anyone advise me (just in principle, of course) whether I would be wise to try to declare this as self-employment and get tax relief on some of my costs? Or whether it would be worthwhile? I'd need an accountant, I guess.

chrismac1

Well yes. Let's say you make £500 in losses on the equipment. £208 for use of own home. £200 on software and IT costs. No doubt some postage and stationery.

Possibly £1k in costs all told, so £200 less tax to pay if you register for self-assessment and file your own returns. Accountancy fees probably more like £300 including VAT if you needed an accountant.

So it depends how much you value your own time I suppose, versus the hassle of doing self-assessment. If you are in any sense a deadline chaser in my view that swings it to not doing anything, as it is a minimum £100 fine for filing 1 day late.

pargeter

I'm inclined to the view that a simple life is best which is probably why I've done nothing about this before now. Your thoughtful view has crystallized that for me, so thanks.

Decision made subject to a good look at the figures!