Paying Tax from YouTube earnings?

Reason123

Hello


I have been dabbling with YouTube for a few years now after seeing a thread here along the lines of '50 ways to make extra income'..


Recently my earnings shot up and I am now earning around £1000 a month.


I have a full time job and I do hit the 40% bracket.


What should I be doing with my YouTube earnings? Must i pay tax?


Regards

cte1111

You should sign up as self employed. Then include your self employment, e.g. You Tube profits, in your tax return.

Pennywise

Don't forget you pay tax on profits, not earnings, so you need to research and calculate what allowable expenses you can claim, which will probably include a proportion of your computer related costs such as purchase of equipment, broadband, etc., a proportion of your household costs for the time you spend at home creating and posting your videos, maybe travelling expenses. Your taxable profit could well be a lot less than the income and on the same basis, there may well be losses from earlier years from the days before your earnings rose.

Reason123

Thanks all - so I should find an accountant that deals with youtube creators? I dont want to pay 40% on everything because of course there are costs relating but I dont keep receipts etc?

polymaff

Reason123 wrote: »

Thanks all - so I should find an accountant that deals with youtube creators? I dont want to pay 40% on everything because of course there are costs relating but I dont keep receipts etc?

Start keeping them, then. You may not need an accountant - but you will need financial records.