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30k made online
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JohnLock
Posts: 74 Forumite
in Cutting tax
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.
Does he need to pay tax?
He doesn't have a business, it's just his hobby.
0
Comments
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He needs to declare income especially as the paper trail will lead to him from the affs that have paid him.0
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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 research0 -
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.0 -
Is this the same £30k you have been asking what to do with on your other threads?0
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Keep_pedalling wrote: »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.0 -
Keep_pedalling wrote: »Is this the same £30k you have been asking what to do with on your other threads?0
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