Buy Me a Coffee and Universal Credit

UKNeil

Hi folks,
I have been on Universal Credit for about 12 months now as my health has not been to great. I'm currently living with my partner who has health issues and is on ESA/Universal Credit. My health is slowly returning and I am hoping to be in part time employment in the near future. Meanwhile i am on Universal Credit. Over the ast 12 months i have SLOWLY built a website which i am hoping will eventually generate income through ads and affiliate marketing. My question is this:

If I use the website BuyMeACoffee to receive donations (not any kind of membbership for the website) would this affect my universal credit and would it have to be declared?

Thanks in advance

Neil

huckster

As soon as you start trading and earning any income from any self-employment activities, you would have to report a change of circumstances on your UC claim under work and earnings, where you would state that you were self-employed.  You would then have to attend the Job Centre for an appointment to verify the self-employment.

Edit. Having looked again at Buymeacoffee, this is a type of payment, so yes agree that this must be disclosed to Universal Credit, so report self-employment as soon as you start receiving any form of payment

MattMattMattUK

It would be income, you would need to report it for UC purposes as well as self-assessment once you reach the threshold of more than £1,000 income in a tax year. 
https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

sheramber

It sounds very much like income.

Can I build a serious business using Buy Me a Coffee?

Yes, there are many creators earning a six-figure income on Buy Me a Coffee. We will grow with you.

UKNeil

sheramber said:

It sounds very much like income.

Can I build a serious business using Buy Me a Coffee?

Yes, there are many creators earning a six-figure income on Buy Me a Coffee. We will grow with you.

It certainly can be used as income but also for 1 off gift amounts. Say if someone thought your website was good and wanted to buy you a coffee in real life but the live on the other side of the world. In comparison if someone bought you a coffee at Starbucks would that be taxable?

huckster

Raise a query in UC journal about this type of income and if they want to count this, how it would reported in any income and expenses reporting.


ADM Chapter H4: Earned income - self-employed earnings (publishing.service.gov.uk)

Earned income H4003
 Earned income means 1 1. the remuneration or proft derived from
 1.1 employment under a contract of service or in an offce (including elective offce)
 or 1.2 a trade, profession or vocation
 or 1.3 any other paid work
 or 2. any income treated as earned income for the purposes of UC.
 Note: Paid work in 1.3 means 2 work done for payment or in expectation of payment. It does not include work performed for a charitable or voluntary organisation or as a volunteer where the only payment received in any of those cases is in respect of expenses. 1 UC Regs, reg 52; 2 reg 2 

tomtom256

I would argue that this is potentially self-employed income.

You have built a website (product) that you hope people will use and then pay whatever they could afford, as such you are trying to make a profit from the product you provide.

You would never be deemed to be gainfully self-employed, as there is no fixed price for your product.
The income is certainly taxable, it's no different to youtubers/auditors who make money this way.

silvercar

UKNeil said:

sheramber said:

It sounds very much like income.

Can I build a serious business using Buy Me a Coffee?

Yes, there are many creators earning a six-figure income on Buy Me a Coffee. We will grow with you.

It certainly can be used as income but also for 1 off gift amounts. Say if someone thought your website was good and wanted to buy you a coffee in real life but the live on the other side of the world. In comparison if someone bought you a coffee at Starbucks would that be taxable?

I've seen quoted on this forum the relevant tax law. If the only option is a Starbucks coffee and there is no cash alternative then there it is not taxable. So purchasing a Starbucks digital voucher from the other side of the world wouldn't be taxable. If the 'buy me a coffee' can be withdrawn as cash then it is taxable.

sheramber

silvercar said:

UKNeil said:

sheramber said:

It sounds very much like income.

Can I build a serious business using Buy Me a Coffee?

Yes, there are many creators earning a six-figure income on Buy Me a Coffee. We will grow with you.

It certainly can be used as income but also for 1 off gift amounts. Say if someone thought your website was good and wanted to buy you a coffee in real life but the live on the other side of the world. In comparison if someone bought you a coffee at Starbucks would that be taxable?

I've seen quoted on this forum the relevant tax law. If the only option is a Starbucks coffee and there is no cash alternative then there it is not taxable. So purchasing a Starbucks digital voucher from the other side of the world wouldn't be taxable. If the 'buy me a coffee' can be withdrawn as cash then it is taxable.

How do I get paid?

Payments are directly transferred to your Stripe or bank account. We do not hold your money, and there is no minimum to get paid.

UKNeil

Thank you for your help everyone. Much appreciated.