Tax & UK Based Amazon.com Affiliates

Hi, I am hoping someone could help me getting started with the tax side of being an affiliate.

I am based in the UK and am an Amazon associate for Amazon.com and .co.uk.

I am making roughly $150 a month from .com and roughly £25 from .co.uk currently.

I am wondering if I have to pay tax on my .com earnings? I have set up payoneer for the payments. I cannot seem to find a straight answer to this.

Some sources say yes, some say no as I am not a US resident, some say there is a $20k annual threshold etc.

Anyone know a straight answer to this please?

If that is your only income then you are not liable for any tax as you are under the minimum threshold.

Ali008 said:

If that is your only income then you are not liable for any tax as you are under the minimum threshold.

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Are you referring to the £11k personal allowance threshold? I do have another job which is £25k p/a before tax. I just really need to know if I should be paying tax on the .com earnings.

Hi mate.

Uk affiliate here. Im pretty sure you pay tax on everything, as even though the .com is for earnings from abroad, it is still being paid into a UK bank account.

if you want to be 100% sure, i would check with the Tax website live chat. It's not as bad as it sounds, i never really wanted to chat to them at first as i thought i may be giving them info i didnt want them to know, but they are really helpful with stuff like this, and put my mind at rest with a number of tax issues.

PassiveJ said:

Are you referring to the £11k personal allowance threshold? I do have another job which is £25k p/a before tax. I just really need to know if I should be paying tax on the .com earnings.

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Yes so in that case you should pay tax for your online earnings, whether you will bother with such small amount is up to you.

You don’t pay VAT on earnings from US companies. But you do pay tax (income tax, corporation tax).

Of course you get an allowance of £10k or whatever it is, but even then you still have to file a tax return.

Rule of thumb: you pay income tax on ALL earnings (including affiliate or otherwise), as long as you're above the threshold. It doesnt matter whether its from the US, UK or Mars (dont tell anyone about the last one though ).

So in your case, since you have a job your earnings are above the personal threshold, so yes you have to declare the income and pay tax on it.

Ali008 said:

Yes so in that case you should pay tax for your online earnings, whether you will bother with such small amount is up to you.

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Although true, I'd encourage the OP to declare it and pay any tax that is due. You dont want to get on the wrong side of the tax man