Extra Income & Tax etc.

Dazza

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Hi,

Hope someone can help and apologies if I am asking the same question that has been asked 100 times. I am wondering if someone can point me in the right direction as to handle paying the tax that would be applicable to additional earnings. I currently only do matched betting which is tax free but am looking to start doing other things to bring in additional income, but obviously keen to avoid a surprise form the tax man :)

Thanks for the help.

D
 

lilszi

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Depends on what you do.
Cashback counts as product discount, not taxable, re-selling = capital gains, tax free up to ~£10k, revenue from referrals, if cash probably taxable, don't know if it's gift card taxable or not.
Betting / Gambling tax free

Professionals correct me if I am wrong :)
 

Jon

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Depends on what you do.
Cashback counts as product discount, not taxable, re-selling = capital gains, tax free up to ~£10k, revenue from referrals, if cash probably taxable, don't know if it's gift card taxable or not.
Betting / Gambling tax free

Professionals correct me if I am wrong :)
I'm pretty sure the 'I have to pay tax' threshold for ebay reselling (if that's what you mean) is £1,000 not £10,000
 

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homie

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I'm pretty sure the 'I have to pay tax' threshold for ebay reselling (if that's what you mean) is £1,000 not £10,000
Capital gains threshold is £12,000, I think but selling on ebay is taxed as income not captial gains if you are doing as a business.

My understanding is it works like this.

A. You buy a box of star wars figures in January and split them up and sell them separately through Feb and March and make a profit. Tax man would say this is a business doing it to make profit so it comes under Income Tax.

B. You buy a posh vase you like in 2009 for £500 and keep it on your shelf for ten years, then redecorate and decide to sell it in 2019 for £700. As it has increased in value while you've owned it this would be seen as a capital gain and come under Capital Gains tax.
 
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Jon

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100% if you are buying things to sell on ebay it is not 'personal allowance' you are doing it as a business
 
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Dazza

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@katykicker @Jon @lilszi @homie Many thanks for the responses - looks confusing, now I know why I had stuck to matched betting up until now :)

Not 100% sure of the routes I am going to go down but lets say I started earning from YouTube videos and from that earned from affiliate links and also earned from surveys and Merch. I presume all of that income would be taxable?

Also, regarding registering as self employed, silly question but does that still apply if I am employed? I would be doing all this onto of the 9-5 job.

Thanks again for the assistance.

D
 

lilszi

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@katykicker @Jon @lilszi @homie Many thanks for the responses - looks confusing, now I know why I had stuck to matched betting up until now :)

Not 100% sure of the routes I am going to go down but lets say I started earning from YouTube videos and from that earned from affiliate links and also earned from surveys and Merch. I presume all of that income would be taxable?

Also, regarding registering as self employed, sill question but does that still apply if I am employed? I would be doing all this onto of the 9-5 job.

Thanks again for the assistance.

D
You can be full time + self employed at the same time, and you need to return self-assessment by yourself every year by 31st Jan.

I believe Youtube comissions and Affiliate earnings are taxable.
 

Jon

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If you are employed (PAYE) and earning online you will still register as self-employed as well. The two things are entirely separate but the advantage to you is that you can select to pay any tax you over 12 months via PAYE from your main job ;)

Once you earn more than £1000 through your affiliate/youtube venture yes it would be taxable
 

Dazza

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Thanks again all. @Jon , I am being dumb, not sure what you mean when you say 'but the advantage to you is that you can select to pay any tax you over 12 months via PAYE from your main job'

Sorry, what is the significance of the £1000 figure? From the above it looks like earnings from Youtube for example are taxed different to earnings from, say Merchandise?

Apologies for the newbie questions.

Thanks,

D
 

Jon

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Thanks again all. @Jon , I am being dumb, not sure what you mean when you say 'but the advantage to you is that you can select to pay any tax you over 12 months via PAYE from your main job'

Sorry, what is the significance of the £1000 figure? From the above it looks like earnings from Youtube for example are taxed different to earnings from, say Merchandise?

Apologies for the newbie questions.

Thanks,

D
HMRC don't care how you earn money. They don't ask you how much you earned via affiliate or mystery shopping or Smartphone Task apps etc.

They just want a big round figure.

Once you earn over £1000 you need to declare that figure to HMRC. The advantage of having a PAYE job at the same time is that you can then give them whatever tax you owe over 12 months as it will come out of your main wage instead of having to pay it all in one go
 

katykicker

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Everything is taxable. Affiliates, surveys, eBay sales that aren't personal, selling merchandise, driving for Uber. It's ALL taxable.

I would suggest not paying any tax you owe by PAYE. Just get into the habit of saving 30% of all your income from online and that *should* cover your tax/NI after any expenses have been deducted (buying stock, website hosting etc)
 

Castro

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I just whack on my Jeff Bezos mask and get to it :cool:

I'm hoping/thinking this £1k allowance will be increased at some point.
 
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Castro

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I just think especially with a Tory govt its just the sort of thing they could increase and make a big fanfare about supporting entrepreneurship etc whilst it actually doesnt affect that many people so won't cost much money compared to other tax cuts.

Call it a premonition!
 

Dazza

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Thanks again for the help.

So, basically, register as self-employed, earn extra cash, keep aside 30%-40%, fill out tax return at end of tax year, and in a nutshell that is it?

Cheers,

D
 

Jon

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Thanks again for the help.

So, basically, register as self-employed, earn extra cash, keep aside 30%-40%, fill out tax return at end of tax year, and in a nutshell that is it?

Cheers,

D
correct-a-mundo

simples!
 

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