Struggle with the tax elements of what to disclose and not disclose on tax returns or when to even start paying taxes for your blog earnings? Need help in how to track your income and expenses to get prepared for taxes? Learn all that and more in this valuable session breaking down what bloggers and content creators need to know.

1. FOOD BLOGGERS GUIDE TO TAX
KAREN MCDONAGH & IZABELA SUCHOMSKA

2. Who Are We?
IZABELA SUCHOMSKA
Izabela’s role as a tax consultant involves her
advising a wide range of businesses, from self
employed start ups to Hollywood actors,
entrepreneurial businesses and established
organisations. She combines all of this with being
a proud mum involving many hours at the side of
tennis courts watching her daughter compete.
She passed her Association of Taxation
Technicians (ATT) exams and was the winner of
the prestigious President’s medal awarded by the
Association. She is also a Chartered Tax Adviser.
Not bad, especially when English is your second
language!
Izabela graduated with a Masters in Foreign Trade
(Faculty of International Relations) at Poland’s
Cracow University of Economics in 2007 before
joining Nyman Libson Paul in 2008.
www.nlpca.co.uk2
KAREN MCDONAGH
Karen advises on a range of tax issues and has
amassed over 20 years worth of skills, knowledge
and experience as a tax consultant.
Her breadth of knowledge is complimented by the
broad range of clients seeking her expertise, not
only self employed individuals and
entrepreneurial businesses but also a touch of
glamour with sports personalities, through to
theatre, film and TV.
In her daily role at Nyman Libson Paul each
situation requires its own approach and advice
needs to be tailored to the client, which ensures
her day is always interesting.
Outside work, Karen is a busy mum and her family
life provides the perfect counter balance to the
technical demands of daily tax advice.

3. A Wealth of Experience
www.nlpca.co.uk3
Ever since Nyman Libson founded the firm in 1933, our goal
has been to provide our clients with a first rate service.
We have a varied portfolio of clients operating across most
business sectors. From the early days, many have been
involved in all aspects of the entertainment industry,
including theatre, film and television.
Whilst we have a leading understanding of private and
business taxation, we also have considerable experience
working within the property and charity sectors.
Exploiting the financial potential of your business or
personal assets is not simply a question of crunching the
right numbers or understanding the latest technical and
regulatory developments. You also need the support of an
experienced and imaginative firm of Chartered Accountants
that understands every detail of your personal
circumstances.
That is why so many individuals and businesses have turned
to NLP over the last 80+ years – and stayed with us.
Our clients know they will receive the care, speed and
quality of advice that they need to flourish in an increasingly
complex world along with a service level and delivery
standards that always exceed expectations.

4. Our POA
www.nlpca.co.uk4
• BUSINESS OR HOBBY
• OBLIGATIONS TO HM REVENUE & CUSTOMS
• TAXABLE / NON TAXABLE ITEMS
• DEDUCTIBLE EXPENSES
• PROFIT OR LOSS
• RECORD KEEPING
• Q & A SESSION

5. Business or Hobby?
FACTORS TO CONSIDER:
• MOTIVE
• FREQUENCY
• TRANSITION FROM HOBBY TO TRADE
• INTERACTION WITH PAYE IF YOU ARE ALSO AN EMPLOYEE
www.nlpca.co.uk5

6. HM Revenue & Customs
REGISTRATION
COMPLETION OF TAX RETURNS
VAT
CHILD BENEFIT & TAX CREDITS
HM REVENUE & CUSTOMS
• REGISTRATION
• COMPLETION OF TAX RETURNS
• VAT
• CHILD BENEFIT & TAX CREDITS
www.nlpca.co.uk6

7. Registration
FORM CWF1 - WITHIN 3 MONTHS OF
COMMENCEMENT OF TRADE (5 OCTOBER - NOTIFY
HMRC REQUIREMENT TO COMPLETE A TAX
RETURN)
PENALTIES FOR LATE REGISTRATION
COMPLETION OF TAX RETURNS
VAT
CHILD BENEFIT & TAX CREDITS
HM REVENUE & CUSTOMS
• FORM CWF1 – NOTIFY WITHIN 3 MONTHS OF COMMENCEMENT OF TRADE
• PENALTIES FOR LATE REGISTRATION
• VAT
• TAX CREDITS
www.nlpca.co.uk7

8. Self Assessment Tax Returns
TAX YEAR 6 APRIL - 5 APRIL
ANNUAL TAX RETURN - FILING DEADLINE:
PAPER - 31 October following the end of the tax year
ONLINE - 31 January following the end of the tax year
PENALTIES FOR LATE FILING:
£100 - 1 February following the end of the tax year
£ 10 - Further daily penalties for a max of 90 days (£900)
£100 - 31 July
www.nlpca.co.uk8

9. Income Tax
PERSONAL ALLOWANCE - 2015/16 £10,600 (tax free) restricted on income > £100k
TAX RATES:
£0 - £31,785 20%
£31,786 - £150,000 40%
OVER £150,000 45%
PAYMENT DATES:
31 January during the tax year
31 July following the end of the tax year
INTEREST & SURCHARGES
www.nlpca.co.uk9

10. National Insurance
• CLASS 2 – FLAT RATE OF £2.80 A WEEK ON PROFITS OF £5,965 OR MORE
• CLASS 4 – 9% ON PROFITS BETWEEN £8,060 AND £42,385
2% ON PROFITS OVER £42,385
• COLLECTION
• CLASS 3 VOLUNTARY - £14.10 PER WEEK
• DEFERMENT
www.nlpca.co.uk10

11. VAT
• REGISTRATION THRESHOLD – £82,000
• NOTIFYING HMRC
• PENALTIES
• SCHEMES AVAILABLE:
- Flat Rate
- Annual Accounting
www.nlpca.co.uk11

12. Child Benefit & Tax Credits
• ASSESSED ON THE HIGHER EARNER (regardless of who receives the benefit)
• AFFECTS INDIVIDUALS WITH TAXABLE INCOME IN EXCESS OF £50,000
• EARNINGS FROM BLOGGING WILL AFFECT THE LEVEL OF CHILD TAX
CREDITS AND WORKING TAX CREDITS
www.nlpca.co.uk12

13. Taxable Income
• ADVERTISING
• SPONSORED POSTS
• COMMISSION
• PAYMENTS IN KIND
• ENDORSEMENT
• SALE OF OWN PRODUCTS OR PRODUCTS RECEIVED
www.nlpca.co.uk13

14. Non-Taxable Income
• GOODIE BAGS
• ENTERTAINMENT
• ITEMS RECEIVED FOR UNBIASED REVIEWS
www.nlpca.co.uk14

15. Expenses
• REVENUE EXPENDITURE
• CAPITAL EXPENDITURE
• USE OF HOME AS OFFICE
www.nlpca.co.uk15

16. Allowable Revenue Expenditure
• FOOD & DRINK (used in the trade)
• WEB HOSTING & UPDATING
• MARKETING & ADVERTISING COSTS
• BUSINESS CARDS
• POSTAGE & STATIONERY
• PHONE & INTERNET CHARGES
www.nlpca.co.uk16

17. Allowable Revenue Expenditure
• TRAVEL
• MOTOR EXPENSES
• RESEARCH COSTS
• PROFESSIONAL COSTS
• BANK CHARGES
• LEGAL & ACCOUNTANCY FEES
• PROFESSIONAL SUBSCRIPTIONS
• PRIVATE USE ADJUSTMENTS
www.nlpca.co.uk17

18. Expenses That Are Not Tax Deductible
• CAPITAL ITEMS:
Laptops
Hard Drives
Cameras
Cars/Bikes
These are covered by capital allowances
• ENTERTAINING
• NON BUSINESS TRAVEL COSTS
www.nlpca.co.uk18

19. Capital Expenditure
• DOMAIN NAME, DESIGN, HARDWARE & OPERATING SOFTWARE
(Functionality of website & creation of an enduring asset)
• IT EQUIPMENT – Laptops/Printers etc
• CAMERAS
• COOKING EQUIPMENT
• CARS
• PRIVATE USE ADJUSTMENT
www.nlpca.co.uk19

20. Use Of Home As Office
PROPORTION OF THE FOLLOWING COSTS:
• HEAT
• LIGHT
• WATER
• COUNCIL TAX
• INSURANCE
• MORTGAGE INTEREST/RENT
www.nlpca.co.uk20

21. Use Of Home As Office
SIMPLIFIED FLAT RATES
Based on business use per month:
www.nlpca.co.uk21
HOURS MONTHLY DEDUCTIONS
25 to 50 £10
51 to 100 £18
101 and over £26

22. Profit or Loss?
PROFIT:
• REPORTABLE ON TAX RETURN
• INCOME TAX/NIC PAYABLE
LOSS:
• REPORTABLE ON TAX RETURN
• INCOME & CAPITAL GAINS TAX RELIEFS AVAILABLE
www.nlpca.co.uk22

23. Record Keeping
• BROADLY 6 YEARS
• 2015/16 RETURN FILED BY 31 JANUARY 2017 – RECORDS MUST BE KEPT
UNTIL AT LEAST FEBRUARY 2022
www.nlpca.co.uk23

24. Nyman Libson Paul
Regina House
124 Finchley Road
London
United Kingdom
NW3 5JS
+0044（20） 7433 2400
+0044 （20） 7433 2401
mail@nlpca.co.uk
www.nlpca.co.uk
www.linkedin.com/nlpca
www.twitter.com/nlpca
Address
Telephone
Fax
Email
Web
LinkedIn
Twitter
Questions & Answers Session
karen.mcdonagh@nlpca.co.uk
020 7433 2447
izabela.suchomska@nlpca.co.uk
020 7433 2483
• Contents of this presentation are for INFORMATION PURPOSES
only and DO NOT constitute professional advice.
• You should ALWAYS TAKE independent professional advice
before acting on any of the information presented here.
• Nyman Libson Paul CANNOT be held responsible for any loss or
damage resulting from action taken or refrained from as a result of
information given during this presentation.
• Tax information is based on current legislation and this MAY
CHANGE in future.