Presentation for WordPress Sheffield meetup in June 2014. If you are making money from WordPress whether as a designer, developer or blogger there are some things you need to know to make sure that you stay on the right side of HMRC.

1. Human Made
so you want to make money from
WordPress?

2. about me
jane falconer-white
@janefalcwhite
hmn.md
kfaccounting.co.uk

4. why is this important?
" In this world nothing can be
said to be certain, except death
and taxes." (Benjamin Franklin)
• HMRC aren’t always too friendly
if you get on the wrong side of
them
• Make the most of your hard
earned money
• Better business person
• Don’t be an ostrich!

5. you’ll turn into lord business!
just kidding

6. what am I?
Tax situation v Job description
Employed
Self Employed / Sole Trader
Partnership
Limited Company

7. what is self employment?
Working for yourself to earn income
“But I’m employed”
“But I’m only being
paid cash”
“But I don’t make a
profit”
“But I don’t get paid
anything”
“But I don’t take the
money out”

8. what does it mean for me?
Register as self employed for self assessment
Self employment NI contributions
Submit a self assessment tax return
Self employment profit added to employment income

9. You are your business
(same legal entity)

10. the good, the bad and the ugly
Only one tax return to do
It’s your personal money
It’s also your personal debt
And your personal tax liability
IR35

11. the dreaded IR35
Issue for contractors and freelancers
Are you employed or self employed?
Judged on a contract by contract basis
HRMC employment status indicator tool

12. do I need an accountant?
How much do you like numbers?
How organised are you?
Are you interested?
Good for advice and specialist knowledge
Accountant v. book keeper

13. get your ****
organised!
Business bank account
Keep your receipts
Proper invoices
Get a system
Get a routine

14. in the cloud

15. expenses are my friend

16. use of home
1. Proportion of costs based on the area of your home used as your office
• Utility bills
• Home insurance
• Mortgage interest
Or
2. £4 per week

17. motor expenses
Keep track of any business mileage (not including travel to normal place of work)
1. Full Cost - business percentage of all costs (based on business mileage)
• All running costs
• Cost of vehicle
2. Mileage - based on business mileage
• 45p per mile to 10,000 miles then 25p per mile

18. other useful expenses
Travel and subsistence
Mobile, landline and broadband
Training
Your new MacBook Pro = capital allowances

19. sorry but no
Business entertaining
Fines and penalties
Self employed NI contributions
Childcare costs
Personal use

20. Not all the money belongs to you

21. tax planning tricks
Tax doesn’t just come once a year
Can get a January double-whammy
Save each month
Magic number is around 25% income
“This isn’t the tax you are looking for.”

22. alternatives
Limited Company
Umbrella company
Employment

23. useful links
HRMC employment status indicator tool - http://www.hmrc.gov.uk/calcs/esi.htm
Registering for self assessment online - https://online.hmrc.gov.uk/registration/newbusiness/introduction

24. Thanks!
@janefalcwhite
hmn.md
kfaccounting.co.uk