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adsense tax in Uk do you need to pay?

Discussion in 'Business & Tax Advice' started by thenewman, Oct 8, 2014.

  1. thenewman

    thenewman Registered Member

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    do you need to pay tax on earnings from adsense in the UK? currently i am not in the UK most of the year due to my work but i run sevral sites all earning adsense income. from this month onwards if my earnings stabalize i could earn just under 50k i do also have many expensis on maintaining the sites like content,V/A , seo etc so less than half is profit so i do not mind if i have to pay tax...

    would like some thoughts on this topic...
     
  2. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    This is clearly a question for an accountant.
    The fact you do not spend all your time in the UK may complicate matters but you will owe tax if your turnover is 50K+
    You will be able to claim expenses but you need specialist tax advice.
    http://www.hmrc.gov.uk/
     
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  3. thenewman

    thenewman Registered Member

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    Thanks for the advise going to take a look into this, can you advise best places to look for an accountant? not sure if you can help me :) on that.....
     
  4. meannn

    meannn Supreme Member

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    Earns 50k/month, and asks do you need to pay tax.
     
  5. thenewman

    thenewman Registered Member

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    50k a year total befor all expensis
     
  6. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    Ask any friends that have businesses for recommendations, ask your local chamber of commerce or local business group.

    Worst case scenario type "your location/your area accountant" into Google.

    https://www.gov.uk/business-support-helpline
    https://www.gov.uk/browse/business
     
  7. Trepanated

    Trepanated Supreme Member

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    For tax purposes you are considered resident if you spend more than half of any given year in the UK (183 days I think).

    Any less than that and you are not liable for Income Tax
     
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  8. thenewman

    thenewman Registered Member

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    sounds good to me... thanks!! either way i want to be on the safe side i will try doubble check hopefully i can find a good accountant. how can i now prove i am outside the UK? i have many stamps in my passport will this help all dated entryed etc...
     
  9. thenewman

    thenewman Registered Member

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    Thanks very much for the advise !! definatly huge help for me in this new venture of mine!! will keep you postted on how things develop...
     
  10. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    Again, these are questions for your accountant.
    http://www.hmrc.gov.uk/nonresidents/
    http://www.hmrc.gov.uk/international/res-dom.htm
    http://www.hmrc.gov.uk/international/tax-incomegains.htm
    http://www.hmrc.gov.uk/international/tax-return.htm
     
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  11. thenewman

    thenewman Registered Member

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    Fantastic!!! thank you for your time and looking into my situation huge help for me...
     
  12. Trepanated

    Trepanated Supreme Member

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    It's not quite as simple as just being outside the UK though.

    If for example you are on a long holiday, or travelling you will still be considered UK resident for tax purposes.

    Also, if you are outside the UK for longer than 3 years, you only need be present in the UK for 90 or 91 days each year to be considered resident for tax purposes.

    Like W130SN, it's always better to discuss it with an accountant.
     
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  13. thenewman

    thenewman Registered Member

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    ok i have been out of the UK for just over 5years .. usually no more than a few days in the UK within the year its been like this ever since i have left... i will also doubble check with an accountant and see what they can advise me. once i find a decent accountant i will update ...

    its an intrestting topic as money from adsense is made globaly not just from uk so not sure how this all works out.. will soon find out. i will also look in adsense forums and see
     
    Last edited: Oct 8, 2014
  14. LostConnection

    LostConnection Senior Member

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    Google will keep your country's tax officials up to date on your earnings, so better not try to hide them, even by accident.

    And consulting an accountant is a must for you.
     
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  15. thenewman

    thenewman Registered Member

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    OK i have been in contact with a few tax accountants and have answers.. No i will not hide my earnings and i will open up a company to declare my earnings.
    First of all it is too easy to just do it correctly than to worrie about hiding the money! so i will be clean and i can sleep safely and calm..

    for thoes intrestted below are more details on this situation with conversations with a income tax consultant,


    Income from adsense you can consider as other income, which you need to declare in your self assessment.

    However the amount you earning is also relevant. Very small amounts you can ignore, but also depends on your total income.

    HMRC looks at your total income.

    So under 10,000 pounds you don't pay TAX, but some NI payments are possible from 8,000 pounds onwards.

    Over the 10,000 pounds you will pay TAX 20% and NI 12%.

    If your earnings from adsense are considerable between 15,000 pounds to 35,000 pounds then setting up a company becomes a solution, because you can save NI cost by paying out Dividend.

    This definitely will make a huge difference in your tax. Make sure that the income remains under £ 70,000 a year ( £5800 a month) if not you should split the company to avoid VAT.

    If you are married you can put your wife also on the company, so you use a bigger threshold.


    Setting up a company cost 15 pounds and keeping it another 15 pounds a year. For an active company then you pay me a fee of 600 pounds a year. If you company become inactive then it will be 100 pounds.

    Regarding hiding your money that is your own decision, but is not allowed. But with smart set up you can reduce tax payment significant. Tax will be over nett earnings after reducing the cost. If you are married or have a partner you can keep £ 20,000 pounds out of tax. And after that it will be 20% tax. The NI tax of 12% you avoid.