Youtube and taxes, a question

Yingers74

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My daughter has a youtube account that she originally set up for fun but in the last year, it has made over the £1000 trading allowance so I have been told she has to submit a self assessment form. This is fine and hopefully the channel will become a long term money maker for her!!! But my question is when do you say it became a 'business', the year it earned over the £1000 or the first day you started the channel when it earned nothing or less than £1000 for a few years?
 
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Jon

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You submit tax returns for each tax year and HMRC don't care about specific dates

So she would just file one for say 2018/2019 and say she earned £1000
 

katykicker

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If you mean when to register as a sole-trader I'd go from when the year you exceeded the £1k. I'm not a tax expert.
 

Yingers74

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yes, I registered her today and it did say you could use the date you started the business or the date it earned more than the trading allowance. We went with the latter as technically, she never deliberately started a business :D
 
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Castro

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Congratulations to your daughter that's amazing!

What is the focus of her channel if you don't mind me asking?
 

Kimilsung

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I thought you only pay taxes if you earn over 10, 000
 

Yingers74

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I thought you only pay taxes if you earn over 10, 000
Yes but you have inform HMRC if you earn over the £1000 trading allowance and fill out a self assessment. I guess this is to catch those with other income too which pushes them over their personal allowances.
 

Kimilsung

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Yes but you have inform HMRC if you earn over the £1000 trading allowance and fill out a self assessment. I guess this is to catch those with other income too which pushes them over their personal allowances.
Ohh.... That sucks.
 

Ivex

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Yes but you have inform HMRC if you earn over the £1000 trading allowance and fill out a self assessment. I guess this is to catch those with other income too which pushes them over their personal allowances.
Wait, really? I was waiting till I reached national insurance levels which I was just under last year.
 

Yingers74

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Yes, I am pretty sure that is right although I doubt the HMRC would chase after you as ultimately unless you have another source of income that takes you over your tax free allowance, you wouldn't owe any tax.
 

Kimilsung

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Yes, I am pretty sure that is right although I doubt the HMRC would chase after you as ultimately unless you have another source of income that takes you over your tax free allowance, you wouldn't owe any tax.
How did her YouTube channel grow if you don't mind me asking?
 

Yingers74

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Her channel is quite niche although there is a good community. Lots of posting and chatting to other YouTubers in the same field. She didn't do any marketing or anything. She's still quite a small channel though.
 
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