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Will I have to pay tax?

Discussion in 'Business & Tax Advice' started by Minchalop, Oct 18, 2014.

  1. Minchalop

    Minchalop Newbie

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    Okay so at the moment I am developing a new app and I have been pitching to and convincing people to help fund this. The donations I receive are all through western union directly into my bank account, and show up as from western union, and from a company called transferwise who deal with transferring funds with lower costs than usual bank transfers, and these donations show up as from transferwise.

    The donations vary from £50 to £400, and the most common amount usually is around £250. I would say that on a good week, I would receive between £3,500 and £7,000 in donations, but on a bad week it could be £1,000.

    My question is, if these amounts are sent purely as donations, but are coming in regularly (daily), will I have to pay tax on them? Will I have to declare this? And if I don't declare it, is there any way that the UK government would notice this volume of income, if so, how? (I ask the last question for educational purposes of course, not planning on doing this if I need to declare)
     
  2. Trepanated

    Trepanated Supreme Member

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    Is the money being donated to you personally, or to a company you own?

    And what do you use the money for?
     
  3. Minchalop

    Minchalop Newbie

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    Its being donated to me personally, I don't own any business.

    And, I am going to be using the money to pay an app developer, advertising, and other expenses that might come up.
     
  4. Trepanated

    Trepanated Supreme Member

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    It would most likely be considered as taxable income. I say 'most likely' because it could possibly be considered a gift, depending on the circumstances.

    Having said that, if it is all being used for business expenses, you may not end up paying any tax.

    You should speak to an accountant though, especially as you are not talking about small donations and they appear to be ongoing.
     
  5. kypso

    kypso Junior Member

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    Donations are also a source of income and depending on where you are living you will have to pay taxes on this income.

    K.