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  • FIRST POST
    • JohnLock
    • By JohnLock 7th Jul 18, 6:35 PM
    • 46Posts
    • 11Thanks
    JohnLock
    30k made online
    • #1
    • 7th Jul 18, 6:35 PM
    30k made online 7th Jul 18 at 6:35 PM
    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.
Page 1
    • Pennywise
    • By Pennywise 7th Jul 18, 6:36 PM
    • 10,484 Posts
    • 19,560 Thanks
    Pennywise
    • #2
    • 7th Jul 18, 6:36 PM
    • #2
    • 7th Jul 18, 6:36 PM
    Does he need to pay tax?
    Originally posted by JohnLock
    Yes - it's self employment.
    • Tallaght
    • By Tallaght 7th Jul 18, 7:10 PM
    • 647 Posts
    • 526 Thanks
    Tallaght
    • #3
    • 7th Jul 18, 7:10 PM
    • #3
    • 7th Jul 18, 7:10 PM
    He needs to declare income especially as the paper trail will lead to him from the affs that have paid him.
    • MrO123
    • By MrO123 7th Jul 18, 8:11 PM
    • 2 Posts
    • 1 Thanks
    MrO123
    • #4
    • 7th Jul 18, 8:11 PM
    • #4
    • 7th Jul 18, 8:11 PM
    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
    • By antrobus 7th Jul 18, 8:50 PM
    • 16,008 Posts
    • 22,834 Thanks
    antrobus
    • #5
    • 7th Jul 18, 8:50 PM
    • #5
    • 7th Jul 18, 8:50 PM
    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.
    Originally posted by JohnLock
    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
    • By Carrot007 7th Jul 18, 9:13 PM
    • 1,580 Posts
    • 1,326 Thanks
    Carrot007
    • #6
    • 7th Jul 18, 9:13 PM
    • #6
    • 7th Jul 18, 9:13 PM
    A hobby that generates 30k of cash, raw or otherwise, in just two months is a business.
    Originally posted by antrobus

    And more importantly wheather you call it a hobby or a business means nothing in regards to taxation.
    • Keep pedalling
    • By Keep pedalling 7th Jul 18, 11:47 PM
    • 5,407 Posts
    • 6,092 Thanks
    Keep pedalling
    • #7
    • 7th Jul 18, 11:47 PM
    • #7
    • 7th Jul 18, 11:47 PM
    Is this the same 30k you have been asking what to do with on your other threads?
    • chrisbur
    • By chrisbur 8th Jul 18, 12:45 AM
    • 2,971 Posts
    • 1,609 Thanks
    chrisbur
    • #8
    • 8th Jul 18, 12:45 AM
    • #8
    • 8th Jul 18, 12:45 AM
    Is this the same 30k you have been asking what to do with on your other threads?
    Originally posted by Keep pedalling
    Not to mention the 20K to invest and the 50K for a buy to let.
    • 00ec25
    • By 00ec25 8th Jul 18, 8:11 AM
    • 6,962 Posts
    • 6,649 Thanks
    00ec25
    • #9
    • 8th Jul 18, 8:11 AM
    • #9
    • 8th Jul 18, 8:11 AM
    Is this the same 30k you have been asking what to do with on your other threads?
    Originally posted by Keep pedalling
    yes I too was wondering about that
    • 00ec25
    • By 00ec25 8th Jul 18, 8:12 AM
    • 6,962 Posts
    • 6,649 Thanks
    00ec25
    And more importantly wheather you call it a hobby or a business means nothing in regards to taxation.
    Originally posted by Carrot007
    actually it does, and there is extensive case law around at what point a hobby becomes a business
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