Help with information on how to pay tax on youtube income

sparkiemalarkie

Hi, my son has a full time job and has just recently started to get an income from his youtube channel. 
The youtube account is set at 'personal' (rather than business) and the income is going into a personal LLoyds account.
How and when does he pay tax on this youtube income and can he 'claim' for expenditures such as purchase of software, pc components etc?

many thanks

sx 

DullGreyGuy

He'll need to register as self employed and to do a tax return when the annual revenue is over £1,000

Expenses for the relevant year can be claimed as long as they are for his business, if they have personal gain from them (eg uses the PC for streaming and playing games) then they must be appropriately proportioned. Whilst revenues are low it can be worth just taking the £1,000 trading credit rather than actually claiming expenses. 

sparkiemalarkie

Thank you for your fast reply.
It's all very new and sudden!
Am I right in thinking that he has until Jan 31 2025 to declare earnings for 2024?

tia

sx

PS is it possible to be taxed PAYE for his day job and pay a lump sum for his youtube earnings?

born_again

I would suggest that he opens a separate account to keep his U-Tube  income/spending separate from his normal wages spending etc.

DullGreyGuy

sparkiemalarkie said:

Thank you for your fast reply.
It's all very new and sudden!
Am I right in thinking that he has until Jan 31 2025 to declare earnings for 2024?

tia

sx

PS is it possible to be taxed PAYE for his day job and pay a lump sum for his youtube earnings?

He would have until October to register and Jan 2025 to submit and pay if he's earned over the £1,000 self employment in the last tax year. 

Yes, you can be PAYE and Self Employed at the same time. If you do cash accounting, as most do, then two are separate but the SE stacks on top of the PAYE

sparkiemalarkie

Thank you...

One more question please....
If he sets aside his tax, as he goes along, can this be put into an interest paying savings account?

tia

sx

[Deleted User]

sparkiemalarkie said:

Thank you...

One more question please....
If he sets aside his tax, as he goes along, can this be put into an interest paying savings account?

tia

sx

Absolutely no reason why not - very wise!