I am earning around $2000 per month although it is not guaranteed if it is more or less. I am doing a long term JV and split the earnings 50% to my partner in the USA via paypal.

I get the money sent on a net45 basis via check and I just cash it in at the local bank branch. I am still a student studying at university what taxes do I have to pay or is there any way of avoiding it?

I have now set-up a wire transfer to have the money wired to me does this make any difference?

BTW: The check/payment comes from the USA, sunny California so does that technically mean I am earning from outside the UK.

Assuming you are from the US it really does not matter where you live, the IRS wants their cut. Basically there are two questions. First do you owe taxes? Yes you do. Second can you get away with not paying them? Possibly depending on the trail the money leaves on its way to you. I am sure the company paying out the affiliate commissions is filling out the correct paperwork. If that paper work is in you partners name then it all comes down to what will he do when the IRS asks him why is not claiming all the income he received.

Really though you are not going to be paying tax on the whole $2k so your tax bill is probably not going to be that high. You pay taxes on the net minus expenses and deductions so starting at $2k is not going to put you in a high tax bracket by any means. Find out exactly what you would have to pay if you do everything above board and then decide it it is worth it to try and beat the system.

Originally Posted by volund

Assuming you are from the US it really does not matter where you live, the IRS wants their cut. Basically there are two questions. First do you owe taxes? Yes you do. Second can you get away with not paying them? Possibly depending on the trail the money leaves on its way to you. I am sure the company paying out the affiliate commissions is filling out the correct paperwork. If that paper work is in you partners name then it all comes down to what will he do when the IRS asks him why is not claiming all the income he received.

Really though you are not going to be paying tax on the whole $2k so your tax bill is probably not going to be that high. You pay taxes on the net minus expenses and deductions so starting at $2k is not going to put you in a high tax bracket by any means. Find out exactly what you would have to pay if you do everything above board and then decide it it is worth it to try and beat the system.

Please read the thread title

Earning affiliate commisions while I am a student in the UK?

I am not a US resident, I live in the United Kingdom of Great Britain, England, London.

you are sure over the amount which you can earn taxfree in GB.
The question is who should find out?

Originally Posted by abrigado

you are sure over the amount which you can earn taxfree in GB.
The question is who should find out?

It's something like you can earn £7000-10,000 (not sure which) before paying tax.

Your not that much over, just say you put it into a ISA or something lol..

But no ones gonna find out for such a small amount

Do a tax return at the end of the tax year and declare it to hmrc. Also, be aware that the bastards will also want national insurance off you.

Originally Posted by jgeeked

It's something like you can earn £7000-10,000 (not sure which) before paying tax.

Your not that much over, just say you put it into a ISA or something lol..

But no ones gonna find out for such a small amount

I think if its under 10k you don't have to pay tax. I reckon at the end of next year if the performance stays at this steady pace I will get easily over 10k but after splitting the earnings I would mostly likely get around 10k taking out all costs on my end etc.

So what would be the best way to go about it? Just stay hush hush? but risk them not seeing I am having to constantly send half my income away to run this so called 'business'.