16 Years old - UK TAX????

[ShadeDream]

I'm 16 and not to sure on how to pay tax.... I want to start earning some cash online from CPA, adsense, etc.... but before I start I want to find out how to pay tax once I start earning, because I have heard that you should always track where and how and from who you earn your cash in order not to have problems in the future. I'm a bit confused and I'm not sure where to go or who to ask about how to pay tax. I was also thinking that if everything goes well, I would like to Incorporate in the US even though I'm in the UK. Is this possible? And what about the tax? I'm so damn :bawling:.

 

[lewi]

i was in the same position a while ago.... i phoned inland revenue etc and they honestly didnt really know (i got passed round 4 people lol) and in the end they said that i needed to register a business in the name of my parents....
never did and never will what a stupid idea they came up with lolz

so yeah just dont pay them and shhhhh!
BUT when you hit 18 make sure you do lol

 

[bluey]

 

[ShadeDream]

 

[pac1984]

once you can set up as a sole trader you should (dont know if there is any age restrictions on that) then all you have to do it fill in a self assessment form at the end of the year.

Once you start earning over the threshold for 40% tax then you should look at setting up a business so you can pay yourself min wage and take the rest in dividends.

On the self assessment form it doesnt ask where the money is coming from it just asks how much .. obviously you need to document all your earnings/spending incase anyone comes sniffing around

 

[*zap*]

Look it's easy to work out
33% of what you earn go's to Inland Revenue
3% go's on your stamp
5% go's on your council tax
5% go's to your book keeper
15% go's to account
25 % going to that girl that swears you're her kid's dad
(Never get that drunk at a Party)
Now you have 14 pence for every pound you make to cover all you can smoke drink or eat and don't over do it cos that's all got 15% vat on it

 

[ShadeDream]

Look it's easy to work out
33% of what you earn go?s to Inland Revenue
3% go?s on your stamp
5% go?s on your council tax
5% go?s to your book keeper
15% go?s to account
25 % going to that girl that swears you?re her kid?s dad
(Never get that drunk at a Party)
Now you have 14 pence for every pound you make to cover all you can smoke drink or eat and don?t over do it cos that?s all got 15% vat on it

lol tax is gay :bawling::bawling::bawling::bawling:
It's killing me. But anyway I need to start something that will be my income source.

 

[netjedi]

In my country i dun have to pay tax from the money tat i earn online. LoL

 

[pac1984]

 

[blackhatttt]

In my country the there is tax but it isn't as high compared to the uk.

And if I remember my company law properly you have to be above the age of 18 to hold share. Yes even for your own company.

 

[ShadeDream]

In my country the there is tax but it isn't as high compared to the uk.

And if I remember my company law properly you have to be above the age of 18 to hold share. Yes even for your own company.

That's only if your talking about shares. I would be looking to a private one.

 

[ShadeDream]

Thank you very much islandman1010. This is the exact thing I was looking for. Your post has cleared up a lot of mess in my head. I now know what to do and where to look. Thanks once again.

 

[Freddie]

I was also thinking that if everything goes well, I would like to Incorporate in the US even though I'm in the UK. Is this possible?

Whatever you do stay away from US incorporation unless there is no way around it and you have a REALLY good reason to get one. Beats me why any non US based person would ever want a US company.

If you are planning to buy clicks or advertising from a company that charges VAT to EU based individuals or companies (such as Google) then you have an extra complication. Find out what to do to reclaim the VAT or else you waste another 10+ % to the government. (I know VAT is 15% in the UK, but if you only claim the VAT as an expense and not reclaim it properly then you only get part of it back). Same goes for anthing else you buy for your business that you have to pay VAT on.

You will probably need some help from someone with experience in this. Don't expect just any accountant to know what to do with VAT issues when almost all checks you get come from outside the EU from companies where you don't have to charge VAT while at the same time having substantial VAT payments going out to Google etc.

You can probably legally avoid most if not all tax liabilities by moving to some sunny place where they have no income tax

Disclaimer: I am NOT a lawyer or an accountant or anything along those lines. I could be completely wrong on any or all of the above

 

[nnickles66]

 

[ShadeDream]

Shade if you want since i am underage aswell we might be able to work together on this tax issue.. Us resident...

Well it would be nice but I gotta get some money rolling in first and then worry about tax. Thanks though.