Registering as a self-employed YouTuber

Michael7429

I have a unique problem. About six or seven years ago, I set up a Google AdSense account for my mother and a basic website which earned no more than £25-50 a year.

I also had a Google AdSense account (roughly the same age), with the same setup but was banned from the platform for not following the rules. This happened around five or six years ago. You can't sign up for another AdSense account after you being banned, I've been told.

Purely as a hobby, I started uploading a small amount of videos to my mother's YouTube account, which I fully control. Videos mainly consist of do-it-yourself and computer tech guides, et cetera.

These videos made very little money up until about two years ago, but the earnings have gradually been going up, especially this year after uploading 5 to 10 videos per month. The earnings don't exceed the national insurance or income tax limit, at the present moment, but I think they will by this time next year.

Because I was diagnosed with a chronic illness, and have been unable to work for several years, it's only fair that the earnings are split 50-50 between myself and my mother. Everything is paid into her bank account and half of its transferred into mine. Neither of us claim any benefits, by the way.

Of course, ideally I need my own AdSense account, but can't. Google are notoriously difficult to deal with, and I wouldn't even bother contacting them and telling them the situation, as they may even end up banning my mother's account.

I know there are channels on YouTube which are run by multiple people, or even kids who have money paid into their parents account, and so on.

How do I go about registering myself as self-employed with HMRC? The AdSense account is registered in my mother's name and bank account, but the YouTube channel is completely controlled by myself. The only contribution from my mother is providing broadband, electricity and emotional support.

Thanks for any advice.

KiKi

AFAIK, it doesn't matter that it's registered with your mum - all HMRC want is the name of your business and the address, and to know what you earn. They won't ask for details like your Google account and who its registered to.

Call HMRC and tell them you are self employed. To be honest, you should have done that before now, whether you met the tax and NI thresholds or not! You will be asked to complete a tax return each year. The easiest thing is to be self employed as a sole trader. Ie, the business is simply your name, registered to where you live. The fact that the account is in your mum's name won't make any difference as far as I am aware. Your mum should also be doing the same thing if she is taking money from it. (Unless, of course, you are taking all the money then gifting half to her.)

ACG

The job does not matter.
You just register with HMRC and declare the income and expenses and pay tax if applicable.

Michael7429

KiKi wrote: »

AFAIK, it doesn't matter that it's registered with your mum - all HMRC want is the name of your business and the address, and to know what you earn. They won't ask for details like your Google account and who its registered to.

Call HMRC and tell them you are self employed. To be honest, you should have done that before now, whether you met the tax and NI thresholds or not! You will be asked to complete a tax return each year. The easiest thing is to be self employed as a sole trader. Ie, the business is simply your name, registered to where you live. The fact that the account is in your mum's name won't make any difference as far as I am aware. Your mum should also be doing the same thing if she is taking money from it. (Unless, of course, you are taking all the money then gifting half to her.)

It doesn't matter that the money is transferred into my mum's account, and then half transferred into mine? It won't always be 50-50, and most of that is to pay for the broadband, electricity, roof over my head, et cetera.

I can technically says its my business, despite relying on my mother to transfer the funds? Or is it best to form a joint partnership, or just be a sole trader?

It's all rather confusing.

Thanks for any advice.

KiKi

Michael7429 wrote: »

It doesn't matter that the money is transferred into my mum's account, and then half transferred into mine? It won't always be 50-50, and most of that is to pay for the broadband, electricity, roof over my head, et cetera.

I can technically says its my business, despite relying on my mother to transfer the funds? Or is it best to form a joint partnership, or just be a sole trader?

It's all rather confusing.

Thanks for any advice.

All HMRC want is to tax you the right amount based on your *income* and the type of income. That income could be from work, from a property you rent out, from benefits etc. As long as it's all taxed correctly.

What you need to be clear with HMRC is what you are declaring, and have a paper trail and proper records on the offchance they ever ask for it. For example, if the income is all yours, but your mum keeps 50% for your board, then you shouldn't declare only receiving 50%. You should declare 100% of it - the fact that you then pay your mum for board is your issue.

AFAIK, it's perfectly valid for income to come via someone else like your mum - as long as you can show what your *actual* earnings are. Ie, 100% of the money. If your mum *is* earning, then she needs to be registered, and that's where you'd need to decide if she also registers as a sole trader / joint partnership etc. I personally think it's easier to make it 100% yours and then 'pay' your mum your board, which can be whatever you want, each month.

However, I am making the assumption that it's fine for the income to come from a Google account that's not registered in your name. I don't think the transfer from your mum is the issue - you can have the business is your name and get 'paid' by someone. It's whether the actual Google account being in her name is an issue, but I don't believe it is - HMRC wouldn't get into that level of detail. However, definitely check that one out. May be worth posting on the MSE tax forum as there are some brilliant experts on there who will probably know in detail any implications. So if I've been wrong anywhere in my replies, then apologies.