When to count income earnt on Patreon?

eld

Hi guys. I am using Patreon http://patreon.com/ for my income.

I am wondering when exactly it's counted? As Patreon first charge people funding me, then it's stored in my "account" with them until I transfer it to Paypal or my bank account directly using another 3rd party.

Is it only counted once it hits paypal/bank, or as soon as Patreon charge someone and it shows up in my Patreon account?

You cannot do anything with money in a Patreon account apart from transfering it, it's not a form of bank like Paypal. So I am a little confused as to what to note down in my upcoming tax form for this year, as Patreon will charge people starting the 1st on April, so I probably won't transfer any into my Paypal until the 4-5th at the earliest, and it won't be the full amount as it could take a week to charge them all.

Is it just safer to put all money in my Patreon in my upcoming tax return?

dori2o

eld wrote: »

Hi guys. I am using Patreon http://patreon.com/ for my income.

I am wondering when exactly it's counted? As Patreon first charge people funding me, then it's stored in my "account" with them until I transfer it to Paypal or my bank account directly using another 3rd party.

Is it only counted once it hits paypal/bank, or as soon as Patreon charge someone and it shows up in my Patreon account?

You cannot do anything with money in a Patreon account apart from transfering it, it's not a form of bank like Paypal. So I am a little confused as to what to note down in my upcoming tax form for this year, as Patreon will charge people starting the 1st on April, so I probably won't transfer any into my Paypal until the 4-5th at the earliest, and it won't be the full amount as it could take a week to charge them all.

Is it just safer to put all money in my Patreon in my upcoming tax return?

You need to show any royalties/fees/tips/gifts etc from your self employment based upon the time they were given to you, not based upon the time you choose to transfer the monies to PayPal.

So anything paid to/ received in your Patreon account between 6 April 2015 and 5 April 2016 (assuming your accounting period runs with the tax year) you declare as part of your self employed earnings.