BluntMan Posted February 25, 2009 Share Posted February 25, 2009 hey all, basically i had a conversation with an accountant and running one of these games is completely legal as a hobby...... untill the moment you recieve one "donation" i was told the moment you recieve a donation unless you are declared a business you actually commiting a type of fraud. well here in the UK you are anyway. I was wondering if anyone else has any other knowledge of this as it may prevent me from releasing another game? Quote Link to comment Share on other sites More sharing options...
Haunted Dawg Posted February 25, 2009 Share Posted February 25, 2009 Re: Declared As A Business? (UK) In my opinion, it can not be a fraud. You never forced the user to "donate", but, donating does mean like giving to the poor. Yet, majority of us don't give any of the donation's to the poor. So they might think it is a fraud due to that. Just change donation to upgrade. Quote Link to comment Share on other sites More sharing options...
POG1 Posted February 25, 2009 Share Posted February 25, 2009 Re: Declared As A Business? (UK) If it says o n your site something like "donate to keep this game running" then i don't see why it would be classed as a business :S Quote Link to comment Share on other sites More sharing options...
BluntMan Posted February 25, 2009 Author Share Posted February 25, 2009 Re: Declared As A Business? (UK) you can probably get away with only the cash for expences but its once you get any profit, its a very grey area when trying to find out information, so if anyone actually knows whats what so to speak, im sure there are a few of us out there that would love to be kept up to date on this Quote Link to comment Share on other sites More sharing options...
Tonka Posted February 25, 2009 Share Posted February 25, 2009 Re: Declared As A Business? (UK) my guess is they'll class it as fraud if you don't declare the income from it Quote Link to comment Share on other sites More sharing options...
Dave Posted February 26, 2009 Share Posted February 26, 2009 Re: Declared As A Business? (UK) Maybe you have to register the site as some kinda charity? (No idea really here cause im only young, But because the donations involved with the script i thought this kinda makes sense) Quote Link to comment Share on other sites More sharing options...
03laceys Posted February 27, 2009 Share Posted February 27, 2009 Re: Declared As A Business? (UK) While your site is on-line and receiving donations it is classed as a non-commercial site thus no need for any declaration of any sort, the moment your site starts to receive profit in the UK at least you should be paying tax and declaring your site as an income, as your site has now become commercial. Hope that helped. Quote Link to comment Share on other sites More sharing options...
Dave Posted February 27, 2009 Share Posted February 27, 2009 Re: Declared As A Business? (UK) While your site is on-line and receiving donations it is classed as a non-commercial site thus no need for any declaration of any sort, the moment your site starts to receive profit in the UK at least you should be paying tax and declaring your site as an income, as your site has now become commercial. Hope that helped. Did alot :) thanks Quote Link to comment Share on other sites More sharing options...
shedh Posted February 27, 2009 Share Posted February 27, 2009 Re: Declared As A Business? (UK) this site will really help you out: http://www.businesslink.gov.uk/ am currently using it but just have some small things to get around Quote Link to comment Share on other sites More sharing options...
Spudinski Posted March 5, 2009 Share Posted March 5, 2009 Re: Declared As A Business? (UK) Is the guy around the corner selling fruit committing fruad? No, he is delivering a service and you are paying him for it. The same princaple can be aplied to a game, you are delivering a service as an entrepineur, its totally legal. Quote Link to comment Share on other sites More sharing options...
Vali Posted April 16, 2009 Share Posted April 16, 2009 Re: Declared As A Business? (UK) Basically you must pay taxes on ALL your income. If you don't make the game a "company", then all the donations the game gets you will add to your income (salary or wherever you get your $), and and you will have to pay tax on that. If you make the game a "company", then that company will pay tax on each sale (so you charge the user the tax). It will also have to pay tax on it's income, but that's calculated differently than for an individual. Example: you pay less tax if you make less profit, and more if you made more. (so you can say you pay tax on profit only) But, to get the $ out of the company, you need to make yourself an employee/owner or the company with a salary. And you will pay the income tax on that salary. The one benefit with the company is that if you have a job, with X salary, and a company with Y income, you pay less tax total for the $ you get (since you keep the $ the company gets to the company) And, depending on the company, you can count some of the things you use as company things (say a new pc, or 1/4 of your house as an office), and those decrease the profit of the company, and tax you pay on the money that company made. Until you make enough $ from your game, I don't think it's worth the time, effort and money to turn it into a company. Just add it's income as "extra income", since chances are you didn't make that much. :-D Quote Link to comment Share on other sites More sharing options...
Vali Posted April 16, 2009 Share Posted April 16, 2009 Re: Declared As A Business? (UK) Is the guy around the corner selling fruit committing fruad? No, he is delivering a service and you are paying him for it. The same princaple can be aplied to a game, you are delivering a service as an entrepineur, its totally legal. That's not correct, he will have to pay taxes on his income. Else, what's the difference between that "guy around the corner selling fruit", his "wife around the other corner selling fruit" and his other "5000 employees around other corners selling fruit for him". Quote Link to comment Share on other sites More sharing options...
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