Passive Income - Business Structure

phb71

Hi

I'm currently living in London and have a full time job at a tech company (not my company). I'm starting to earn a bit of passive income on the side, not through investments but online blogging, I was wondering what's the income threshold in the UK for secondary income before I have to declare it to HMRC?

Also, if I reach that threshold, what business structure do you advise me to setup (I will probably keep my full time job) knowing that I will be living in the UK for only another 2-3 years?

John

Flyonthewall

phb71 wrote: »

Hi

I'm currently living in London and have a full time job at a tech company (not my company). I'm starting to earn a bit of passive income on the side, not through investments but online blogging, I was wondering what's the income threshold in the UK for secondary income before I have to declare it to HMRC?

Also, if I reach that threshold, what business structure do you advise me to setup (I will probably keep my full time job) knowing that I will be living in the UK for only another 2-3 years?

John

There is no threshold, if you're earning even 1p you need to be registered as self employed and declaring it.

If you are running a business, whether you make a loss, break even or make a profit you need to be declaring it.

phb71

What tax business structure do you advise to use for my situation? Sole trader? Limited company? Other?

Wizzbang

Sole trader, unless you want to employ people (unlikely in your scenario I would think). You need to get a UTR from HMRC and they will send you a self-assessment tax form every year, which you will need to work out. I suggest you keep detailed spreadsheets of your profit and loss, along with copies of all receipts. Although, I don't know whether leaving the country in 2-3 years would affect your decision.