30k made online

JohnLock
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.

Comments

  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Name Dropper First Post First Anniversary
    JohnLock wrote: »
    Does he need to pay tax?

    Yes - it's self employment.
  • Tallaght
    Tallaght Posts: 1,632 Forumite
    First Anniversary Combo Breaker First Post
    He needs to declare income especially as the paper trail will lead to him from the affs that have paid him.
  • MrO123
    MrO123 Posts: 5 Forumite
    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 research :)
  • antrobus
    antrobus Posts: 17,386 Forumite
    JohnLock wrote: »
    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. :)
  • Carrot007
    Carrot007 Posts: 4,534 Forumite
    First Anniversary Name Dropper First Post
    antrobus wrote: »
    A hobby that generates £30k of cash, raw or otherwise, in just two months is a business.


    And more importantly wheather you call it a hobby or a business means nothing in regards to taxation.
  • Keep_pedalling
    Keep_pedalling Posts: 16,585 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Is this the same £30k you have been asking what to do with on your other threads?
  • chrisbur
    chrisbur Posts: 4,048 Forumite
    Name Dropper First Anniversary First Post
    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.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    Keep_pedalling wrote: »
    Is this the same £30k you have been asking what to do with on your other threads?
    yes I too was wondering about that
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    Carrot007 wrote: »
    And more importantly wheather you call it a hobby or a business means nothing in regards to taxation.
    actually it does, and there is extensive case law around at what point a hobby becomes a business
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