1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

16 Years old - UK TAX????

Discussion in 'Business & Tax Advice' started by ShadeDream, Dec 9, 2008.

  1. ShadeDream

    ShadeDream Elite Member

    Joined:
    Nov 27, 2008
    Messages:
    2,209
    Likes Received:
    5,230
    Location:
    He who laughs last, laughs longest.
    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 :confused::confused::confused::confused::bawling:.
     
  2. lewi

    lewi Jr. VIP Jr. VIP Premium Member

    Joined:
    Aug 5, 2008
    Messages:
    2,309
    Likes Received:
    818
    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
     
    • Thanks Thanks x 1
  3. bluey

    bluey Registered Member Premium Member

    Joined:
    Mar 3, 2008
    Messages:
    70
    Likes Received:
    40
    Ok I will keep this simple speak to the local tax office and you'll be able to earn some money tax free it is around £5000 before being liable to tax and you should a keep a record of all your expenses. Anything you buy for your business. If you are still at school/college check out the library or speak to local business enterprise center they are a mine of information.

    If you choose to incorporate in the US I can only tell you about Vegas (Nevada) it cost me around $500 to set it all up the biggest problem is getting a bank account (i think you need to be 18 to get checking or business account).

    If I can help any more and you are serious just PM me and I will try and answer any Q's.
    you might have.
     
    • Thanks Thanks x 1
  4. ShadeDream

    ShadeDream Elite Member

    Joined:
    Nov 27, 2008
    Messages:
    2,209
    Likes Received:
    5,230
    Location:
    He who laughs last, laughs longest.
    Yes I am serious about this but first I need to find my income source. I will go and find out about the £5000 tax free liability first.
    Also, once I do start paying income tax, then what do I tell them my income source is? For example if I register to a network such as CJ do I then tell them my income source is affliate marketing at CJ?? Bit confused here.
     
    Last edited: Dec 10, 2008
  5. pac1984

    pac1984 Registered Member

    Joined:
    Sep 16, 2008
    Messages:
    92
    Likes Received:
    14
    Location:
    Leeds UK
    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
     
    • Thanks Thanks x 1
  6. *zap*

    *zap* Regular Member

    Joined:
    Apr 7, 2008
    Messages:
    349
    Likes Received:
    98
    Occupation:
    none
    Location:
    Uk
    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
     
  7. ShadeDream

    ShadeDream Elite Member

    Joined:
    Nov 27, 2008
    Messages:
    2,209
    Likes Received:
    5,230
    Location:
    He who laughs last, laughs longest.
    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. :)
     
  8. netjedi

    netjedi Jr. VIP Jr. VIP Premium Member

    Joined:
    May 15, 2008
    Messages:
    663
    Likes Received:
    1,048
    Occupation:
    Student
    Location:
    Endor
    In my country i dun have to pay tax from the money tat i earn online. LoL
     
  9. pac1984

    pac1984 Registered Member

    Joined:
    Sep 16, 2008
    Messages:
    92
    Likes Received:
    14
    Location:
    Leeds UK
    i know morocco is simular .. dont have to pay tax on international moooonies!

    Its not 33% tax in UK so its not so bad! Unless you earn over £36kish a year but then you should be starting your own company so you only pay low band company tax and pay yourself as little as possible and take rest in divis
     
  10. blackhatttt

    blackhatttt Regular Member

    Joined:
    Apr 11, 2008
    Messages:
    221
    Likes Received:
    19
    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.
     
  11. ShadeDream

    ShadeDream Elite Member

    Joined:
    Nov 27, 2008
    Messages:
    2,209
    Likes Received:
    5,230
    Location:
    He who laughs last, laughs longest.
    That's only if your talking about shares. I would be looking to a private one.
     
  12. ShadeDream

    ShadeDream Elite Member

    Joined:
    Nov 27, 2008
    Messages:
    2,209
    Likes Received:
    5,230
    Location:
    He who laughs last, laughs longest.
    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. :)
     
  13. Freddie

    Freddie Registered Member

    Joined:
    May 16, 2008
    Messages:
    62
    Likes Received:
    13
    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 :)
     
    Last edited: Dec 11, 2008
  14. nnickles66

    nnickles66 Newbie

    Joined:
    Dec 11, 2008
    Messages:
    12
    Likes Received:
    1
    Although this is alot of information for a 16yr old just getting his feet wet, I do agree with speaking to your local tax office forsure. They'll have the 'ins' and 'outs'.
    Nancy. USA
    This year IRS guarantees to accept 100% of all http://www.1040extension.com/s filed.
     
  15. ShadeDream

    ShadeDream Elite Member

    Joined:
    Nov 27, 2008
    Messages:
    2,209
    Likes Received:
    5,230
    Location:
    He who laughs last, laughs longest.
    Well it would be nice but I gotta get some money rolling in first and then worry about tax. Thanks though. :)