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30k made online

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My son made 30k raw cash online over the past two months, affiliate marketing.
Does he need to pay tax?
He doesn't have a business, it's just his hobby.

Comments

  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    JohnLock wrote: »
    Does he need to pay tax?

    Yes - it's self employment.
  • Tallaght
    Tallaght Posts: 1,632 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    He needs to declare income especially as the paper trail will lead to him from the affs that have paid him.
  • MrO123
    MrO123 Posts: 5 Forumite
    He will need to pay tax as self employed, and will need to complete a tax return. I suggest he registers for self assesment ASAP. If he qualified for self assesment for the first time in the tax year to 5 April 2018, he needs to register by 5 October 2018 or could face substantial fines and penalties.

    However, as this board is about cutting tax, assuming his main job is not from trading income (including self employed eg a contractor) he can use the trading allowance and deduct 1000 from his income to get the amount liable for tax. If he is a 20% tax payer this would be an extra 200 pounds in his pocket. If a 40% tax payer an extra 400 pounds. this is assuming no expenses have been claimed.

    As self employed essentially carrying on a trade - of selling via affiliate links, he could deduct his expenses (which i expect would be minimal) or the 1000 allowance - but not both.

    I cant post links but you can find info on the trading allowance and requirements on the gov.uk website

    Ofcourse do your own research :)
  • antrobus
    antrobus Posts: 17,386 Forumite
    JohnLock wrote: »
    My son made 30k raw cash online over the past two months, affiliate marketing.
    Does he need to pay tax?
    He doesn't have a business, it's just his hobby.

    A hobby that generates £30k of cash, raw or otherwise, in just two months is a business.

    Get an accountant.

    And congratulate yourself for raising a smart son. :)
  • Carrot007
    Carrot007 Posts: 4,534 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    antrobus wrote: »
    A hobby that generates £30k of cash, raw or otherwise, in just two months is a business.


    And more importantly wheather you call it a hobby or a business means nothing in regards to taxation.
  • Keep_pedalling
    Keep_pedalling Posts: 20,822 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    Is this the same £30k you have been asking what to do with on your other threads?
  • chrisbur
    chrisbur Posts: 4,251 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Is this the same £30k you have been asking what to do with on your other threads?

    Not to mention the £20K to invest and the £50K for a buy to let.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Is this the same £30k you have been asking what to do with on your other threads?
    yes I too was wondering about that
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Carrot007 wrote: »
    And more importantly wheather you call it a hobby or a business means nothing in regards to taxation.
    actually it does, and there is extensive case law around at what point a hobby becomes a business
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