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Knowing What to Declare
Keanmi
Posts: 10 Forumite
in Cutting tax
Hello there
I'm a bit overwhelmed with tax at the moment and hope you can help.
Im employed through an agency but also have had a bit of success on Youtube recently during 2020.
I get that I need to declare my youtube earnings as income but many people like to just send 'donations' to the channel via Paypal. Some of these are under 'Friends and Family' and don't look like sales and others are gifted as if they were a sale. However, no service or product is really being exchanged (or is it? - I'm a musician and play songs live to keep folks entertained during lockdown.)
Do I declare all, just the ones that look like 'sales' (not Friends and Family gifts) or do I need to declare it at all if they intended as gifts?
Please help me do the right thing.
Many thanks
Keanmi
I'm a bit overwhelmed with tax at the moment and hope you can help.
Im employed through an agency but also have had a bit of success on Youtube recently during 2020.
I get that I need to declare my youtube earnings as income but many people like to just send 'donations' to the channel via Paypal. Some of these are under 'Friends and Family' and don't look like sales and others are gifted as if they were a sale. However, no service or product is really being exchanged (or is it? - I'm a musician and play songs live to keep folks entertained during lockdown.)
Do I declare all, just the ones that look like 'sales' (not Friends and Family gifts) or do I need to declare it at all if they intended as gifts?
Please help me do the right thing.
Many thanks
Keanmi
0
Comments
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we are not able to advocate posters commit tax fraud. Earnings are earnings, whether they are cash in hand or labelled as 'friends and family on Paypal. If they are gifts, would they gift them to you if you performed no service for them?
What you do now is up to you, Declare or don't declare
But HMRC are not stupid either, they are always watching and have alot of fingers in alot of pies and connect the dots together
HMRC Connect and tax investigations: what you need to know | Croner-i Tax and Accounting (croneri.co.uk)
Ten ways HMRC can tell if you’re a tax cheat | Financial Times (ft.com)
"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP2 -
See: https://www.fonoa.com/blog/uk-tax-obligations-for-streamers-on-youtube-and-twitch
Also: https://yttalk.com/threads/paying-tax-on-youtube-earnings-guide-hmrc-uk.124173/
If some of the amounts received are from relatives there is an argument that they are using the channel as a means of making a gift to you rather than it being connected to what you do.2 -
My understanding is that it's all taxable (assuming the 'friends and family' element is simply the PayPal classification and not "real life").
However, you migjt be able to offset the costs of the instruments, cables, recording/editing software etc and there's also the £1k trading allowance.
Roughly what sums are involved?2 -
All most helpful thank you for your time and expertise.1
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