Tax questions in the UK
I am a UK resident, and have a few websites, currently i have my adsense earnings "on hold" until i get all the tax stuff figured out!
Do i have to register myself as a company? or do i just go to the customs and revenue website and register myself as self-employed? I am also employed in my day job and pay taxes through PAYE
There are so many forms on the hmrc site its very confusing!
Can anybody from the uk, in a similar situation explain to me how to keep my self on the correct side of the taxman?
Contact revenue and customs to register for self assessment. Each year you fill in your self assessment and declare all your income including PAYE, self employment, savings, dividends etc. Then you pay tax on anything that hasn't had tax already taken off it. Adsense would come under self employment earnings.
you'll also have to pay class 2 national insurance (around £15 a month), plus class 4 on any self employeed earnings (8% over your personal allowance).
Setting up a company at this stage would be pointless IMO (from a tax perspective) - you really need to be earning over £30k from self employment for this to be more tax efficient. Start off self employed and see how it goes.
Just ring up your local tax office for advice.
thanks for hte response, i kind o thought it would be along those lines.
always good to hear it from someone else, i'll call the tax place after my holibags :cool: