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Posted

Hi i was wondering that if you make a website, and if that website starts to generate income under Brittish law would i have to register that website with the taxman as a buisness meaning that i would have to pay tax on any money made or would it be that i wouldnt have to register if so that all the money would be tax free. Ive had some imputs from a few ppl but they are saying either that it would be tax free or you would get taxed once your earned a certain amount.

thanks for reading this

skal

Posted

You would need to either setup as a company (would be overkill in your situation) or set up as a sole trader which is your name trading as xxx business name.

 

As your not going to be an employee of someone else then basically your becoming self employed

 

Either way. Regardless if it makes money or not. You legally required to register with the Inland Revenue as self emlpoyed and then submit your tax return yearly. Your also required to pay national insurance contributions usually done on either a monthly or annual basis.

 

The amount of tax you pay depends on the money you make and if you pass the threshold.

 

If you have just read that and sat back thinking WHAT???? seek free advice from a local accountant. Usually they will give you a meeting for free and explain it to you. As generally they hope you will use them to file your accounts.

Posted

Yeah true enough but you step a dangerous path with the inland revenue for no reason.

For the sake of submitting a online tax return once a year saying you owe nothing (assuming you owe nothing) beats the inland revenue deciding you owe £20k unless you can prove different.

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