Disabled & Tax on Youtube earnings

edited 30 November -1 at 1:00AM in Disability Money Matters
14 replies 2.5K views
Orb8Orb8 Forumite
6 Posts
edited 30 November -1 at 1:00AM in Disability Money Matters
Hi,

I hope you can help please.. I have a query regarding being disabled, in receipt of Employment and Support allowance (ESA) at the higher rate (Support Group) & having a YouTube channel. The channel is just a hobby for me and I upload a video perhaps once a month or so depending on when I feel ok to record some footage. Recently for example I have not uploaded a video for 3 months or so.

I don't work and claim the above benefits (due to spinal issues and a bone tumour etc.) I also have a Youtube channel with coming up to 2600 subscribers which I do short videos for, and this makes me approx £140 per year.

My query is regarding tax & self assessment etc and whether or not I am required to do this or not. I have been trying to get my head around the new 2017 onwards HMRC rules regarding Trading Allowance and being able to earn up to £1000 per year, but it doesn't seem clear for those like me that receive ESA & Disability Benefit. I have read online somewhere that It's ok to receive up to £20 per week in addition to the benefits but could someone confirm this or not please?

Any advice would be very welcome.

Many Thanks indeed
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Replies

  • edited 29 January 2018 at 5:12PM
    poppy12345poppy12345 Forumite
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    edited 29 January 2018 at 5:12PM
    Orb8 wrote: »
    Hi,

    I hope you can help please.. I have a query regarding being disabled, in receipt of Employment and Support allowance (ESA) at the higher rate (Support Group) & having a YouTube channel. The channel is just a hobby for me and I upload a video perhaps once a month or so depending on when I feel ok to record some footage. Recently for example I have not uploaded a video for 3 months or so.

    I don't work and claim the above benefits (due to spinal issues and a bone tumour etc.) I also have a Youtube channel with coming up to 2600 subscribers which I do short videos for, and this makes me approx £140 per year.

    My query is regarding tax & self assessment etc and whether or not I am required to do this or not. I have been trying to get my head around the new 2017 onwards HMRC rules regarding Trading Allowance and being able to earn up to £1000 per year, but it doesn't seem clear for those like me that receive ESA & Disability Benefit. I have read online somewhere that It's ok to receive up to £20 per week in addition to the benefits but could someone confirm this or not please?

    Any advice would be very welcome.

    Many Thanks indeed
    I can't answer your question on tax and self assessment, sorry.

    About the work you do. Have you reported this and your earnings to DWP? If not then you'll need to do this. You can do permitted work BUT you do need to tell them about this and fill in a form. You can work up to 16 hours per week and earn up to £120 per week without it affecting your benefits. See this link.
    https://www.turn2us.org.uk/Benefit-guides/Employment-and-Support-Allowance-Permitted-Work/What-is-permitted-work-(Employment-and-Support-All
  • AmesAmes Forumite
    18.5K Posts
    The new rules about being able to run a hobby business and earn up to £1000 were scrapped.

    https://www.moneysavingexpert.com/news/protect/2017/04/government-drops-1000-tax-breaks-for-online-sellers-and-room-renters-for-now
    Unless I say otherwise 'you' means the general you not you specifically.
  • Orb8Orb8 Forumite
    6 Posts
    Thank you for the replies.. Yes I understand DWP's requirements and this is fine, but it is more the tax issue was interested in. I suppose just to be sure I could seek advice from a tax advisor. As it's such a small amount per year though I'm also considering just demonetising the videos.

    Thank you again
  • p00hsticksp00hsticks Forumite
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    You may get more answers posting over on the Tax board
    http://forums.moneysavingexpert.com/forumdisplay.php?f=22
  • Orb8Orb8 Forumite
    6 Posts
    Ok thank you.
  • teddysmumteddysmum Forumite
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    If you don't otherwise work and depend on benefits, the small income is unlikely to bring you into paying tax, but as mentioned the benefits people need to know and the work you do not contradict a reason for you disability awards.
  • Orb8Orb8 Forumite
    6 Posts
    Thank you, & I agree. I just wish things were easier to understand. IMHO with rules and regulations being changed day in & day out its just made wading through information regarding anything important a mine field.

    Thank you again though.
  • poppy12345poppy12345 Forumite
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    Orb8 wrote: »
    Thank you, & I agree. I just wish things were easier to understand. IMHO with rules and regulations being changed day in & day out its just made wading through information regarding anything important a mine field.

    Thank you again though.
    The permitted work rules haven't changed. You're doing the work, earning the money which means you need to report this to DWP.

    I'm guessing you haven't reported this to them? How long have you been doing this work? It only takes 1 person to report you....
  • Orb8Orb8 Forumite
    6 Posts
    poppy12345 wrote: »
    The permitted work rules haven't changed. You're doing the work, earning the money which means you need to report this to DWP.

    I'm guessing you haven't reported this to them? How long have you been doing this work? It only takes 1 person to report you....

    Hi,

    I understand. I called the DWP and I'll be fine in regards to approx 2 hours work per month, they even sent me the PW1ESA link which has now been sent off.

    I have had my reviews channel on youtube for 5 years, however the end of 2016 was the first time it made anything (just over £17 in total.) So up to now this is my second year with monetisation after building up enough subscribers and passing the youtube payments threshold. Now to sort out the tax.

    Thank you
  • mrcol1000mrcol1000 Forumite
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    Orb8 wrote: »
    Hi,

    I understand. I called the DWP and I'll be fine in regards to approx 2 hours work per month, they even sent me the PW1ESA link which has now been sent off.

    I have had my reviews channel on youtube for 5 years, however the end of 2016 was the first time it made anything (just over £17 in total.) So up to now this is my second year with monetisation after building up enough subscribers and passing the youtube payments threshold. Now to sort out the tax.

    Thank you

    Online tax returns is not hard. Mine takes about half an hour and mine is more complicated as I buy and sell. It really is as easy as the money in and the money out. It is only more complicated if you earn more. You won't have to pay tax. Don't forget to claim for anything you have to pay for when making the videos. It will hardly matter now but if you ever increase income above tax then it will. The tax return is pretty easy and just a case of answering questions, there is a section on benefits. Most of it won't apply to you.

    I found this link that may help.

    http://yttalk.com/threads/paying-tax-on-youtube-earnings-guide-hmrc-uk.124173/

    I know people on here won't like it, but for £100 a year I think you are wasting your time registering for tax. It is unlikely HMRC will catch up with you for a paltry amount, but you never know when they may decide to target You Tube channels. So you may want to do it for peace of mind.
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