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

Do we have to pay tax? [UK Residents Only]

Discussion in 'Black Hat SEO' started by Smart SEO, May 14, 2013.

  1. Smart SEO

    Smart SEO Senior Member

    Joined:
    Apr 17, 2011
    Messages:
    857
    Likes Received:
    759
    Location:
    Google HQ
    Hi, i live in the UK and i have a good amount of money in my bank account now. Im currently in my first year in University so i was wondering do we still have to pay tax on our internet marketing earnings? If so how does it work, what do i need to do?

    Kinda confused about the whole thing. Iv just left the money in the bank, and nobody has told me anything about it being taxed or anything.

    Any ideas??
     
  2. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

    Joined:
    Sep 24, 2008
    Messages:
    3,816
    Likes Received:
    13,925
    How much money have you made (revenue)? That will make quite a difference to the correct answer...
     
  3. healzer

    healzer Jr. Executive VIP Jr. VIP Premium Member

    Joined:
    Jun 26, 2011
    Messages:
    2,363
    Likes Received:
    1,966
    Gender:
    Male
    Occupation:
    Marketing automation tools
    Location:
    Somewhere in Europe
    Home Page:
    by law, you have to pay taxes for each penny you earn legally :)
    but how to do it; maybe talk to an accountant or some BHW members from UK
     
    • Thanks Thanks x 1
  4. Smart SEO

    Smart SEO Senior Member

    Joined:
    Apr 17, 2011
    Messages:
    857
    Likes Received:
    759
    Location:
    Google HQ
    This year around 7000 pounds. It will be much higher once my amazon commisons start flowing in starting late next month. On average though i make around 2000 pounds a month.

    I have no idea what im doing, its just all piling up in my bank.

    Cheers

    EDIT: I was talking to someone earlier and they said something to do with Offshore accounts, but he said if you dont know what your doing, the money could end up in the wrong persons hand? WTF lol
     
    Last edited: May 14, 2013
  5. nwworkwear

    nwworkwear Registered Member

    Joined:
    Jan 3, 2012
    Messages:
    72
    Likes Received:
    12
    In the Uk we only pay tax on money earned over £9440 a year I think it is at the moment. Then any money earned over that you pay 20% tax.
     
    • Thanks Thanks x 1
  6. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

    Joined:
    Sep 24, 2008
    Messages:
    3,816
    Likes Received:
    13,925
    Call HMRC and register as self-employed - they will send you a self assessment at the end of the tax year. If you've only made £7k so far you will be under the tax allowance so won't have to pay anything. It's probably best to file your self-assessment, though. Their website is reasonably helpful, but you should still speak to a professional.

    If you're expecting to make around £2k a month then definitely speak to an accountant. I didn't when I first started and I seriously regret not doing it as my accounts were a mess. The first consultation will be free and they will save you a lot in the long run. Making £2k a month you're probably best registering a LTD company as it's more tax efficient but the accountant will advise you on that.
     
    • Thanks Thanks x 6
  7. Smart SEO

    Smart SEO Senior Member

    Joined:
    Apr 17, 2011
    Messages:
    857
    Likes Received:
    759
    Location:
    Google HQ
    Great advice, much appreciated man!
     
  8. TheArticleMan

    TheArticleMan Power Member

    Joined:
    Aug 18, 2011
    Messages:
    588
    Likes Received:
    297
    Occupation:
    Writing
    Location:
    London - UK
    You will be fine until you are making over £9000+ a year, so from April to end of next march. If you haven't then you are fine. If you had as meathead said it is better off setting up an LTD as you will be able to write off some costs and keep more profit in the long run.

    Cheers.
     
  9. Abstroose

    Abstroose Elite Member

    Joined:
    Nov 20, 2008
    Messages:
    2,097
    Likes Received:
    3,475
    Occupation:
    Thai Boxer
    Location:
    UK
    Home Page:
    Got any recommendations for an accountant?
     
  10. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

    Joined:
    Sep 24, 2008
    Messages:
    3,816
    Likes Received:
    13,925
    Mine is in Angel if that's any good for you?
     
  11. pokerjk

    pokerjk Senior Member

    Joined:
    Dec 26, 2010
    Messages:
    1,167
    Likes Received:
    384
    Occupation:
    Online Marketer
    Location:
    England
    Yes I would do what meathead said. Also do you have any other part time job / other income as well as online? As this will be added to the 7k and may take you over the limit you have to pay tax on.

    Get an accountant though, you will be able to write a lot of income if you are working from home.
     
  12. Smart SEO

    Smart SEO Senior Member

    Joined:
    Apr 17, 2011
    Messages:
    857
    Likes Received:
    759
    Location:
    Google HQ
    Do you need to physically know the guy or can everything be done via phone/email?
     
  13. Smart SEO

    Smart SEO Senior Member

    Joined:
    Apr 17, 2011
    Messages:
    857
    Likes Received:
    759
    Location:
    Google HQ
    Thanks! But what do you mean "will be able to write a lot of income" Are they capable of saving you money?
     
  14. verilix

    verilix Jr. VIP Jr. VIP

    Joined:
    Sep 18, 2009
    Messages:
    2,879
    Likes Received:
    1,277
  15. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

    Joined:
    Sep 24, 2008
    Messages:
    3,816
    Likes Received:
    13,925
    It's easier to go meet them in person initially and start building a relationship. You need your accountant to be on side from day one so it's not a place to be cutting corners.

    I don't meet mine very often and do most over the phone and email, but I would definitely recommend finding someone local.
     
  16. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

    Joined:
    Sep 24, 2008
    Messages:
    3,816
    Likes Received:
    13,925
    There are certain costs you can offset against your taxes. So you might earn far more than the tax threshold but write off enough to pay less tax. An accountant will definitely save you money, mine is the best investment I've ever made.
     
  17. pokerjk

    pokerjk Senior Member

    Joined:
    Dec 26, 2010
    Messages:
    1,167
    Likes Received:
    384
    Occupation:
    Online Marketer
    Location:
    England
    Yes, they will advice you on what you can claim as expenses such as a percent of rent you pay, a % of utility bills even things such as toilet roll. They pay for themselves really.
     
  18. Smart SEO

    Smart SEO Senior Member

    Joined:
    Apr 17, 2011
    Messages:
    857
    Likes Received:
    759
    Location:
    Google HQ
    Thanks guys, ill definitely book some appointments locally
     
  19. ShabbySquire

    ShabbySquire Power Member

    Joined:
    Nov 30, 2011
    Messages:
    574
    Likes Received:
    122
    Location:
    UK
    As mentioned, keep all your invoices related to your business. Whether you buy: proxies, vps, hosting, wp plugins, any software, etc. Anything you spend to keep your biz afloat/running.
     
  20. shanna_doll

    shanna_doll Power Member

    Joined:
    Apr 10, 2012
    Messages:
    653
    Likes Received:
    321
    Location:
    Bosnia and Herzegovina
    Why'd you pay tax? To pay for government that spends money on expensive cars and unlimited coffee? I'd never pay tax when I don't have too, at least not in my country because the gov is a joke for years. The only "tax" I want to pay is my religious duty of paying 2.5% of funds I'm not using over whole year, to poor people.
     
    • Thanks Thanks x 2
    Last edited: May 14, 2013