This document discusses tax considerations for bloggers. It explains that if a blogger earns income from blogging, they must register as self-employed and pay income tax and National Insurance contributions. It outlines expenses that can be deducted, such as website costs, marketing costs, and a portion of home office expenses. The document also discusses what income bloggers need to declare to tax authorities, including payments received in cash, in-kind, or from advertising.

1. Blogging Foundations:
Accounting
22 June 2013

2. Introduction
Georgi Rollings ACA
Mum of 3 year old twin girls

3. Introduction
• Blogging: trade or hobby
• What expenses are tax deductible
• Working from home
• What income do I need to declare
• Payment in kind

4. Blogging: trade or hobby
• If you earn income from your blog then:
• Register as self employed with HMRC
• Annual self assessment tax return
• Pay income tax and self employed NICs
• Not a hobby if you intend to make money
• Selling advertising space
• Signing up for Google AdWords
• Accepting payment for writing blogs

5. What expenses are tax deductible
• Incurred “wholly and exclusively” for your
trade
• Telephone
• Broadband
• Website costs
• Professional fees
• Marketing costs
• Conferences and associated travel

6. What expenses can’t you claim
• Childcare
• Entertaining
• Subsistence costs e.g. lunch, coffee –
must involve overnight stay
• Personal expenses

7. Capital expenditure
• “Capital allowances” vs. allowable
business expense
• Annual investment allowance on tax return
• Computer, printer, office furniture, etc.
• Can “disclaim” capital allowances if not
paying any tax

8. Working from home
• Small weekly allowance for every week
you do any work from home = current
level is £4 per week
• OR calculate use of home as office cost:
• Number of rooms
• House running costs
• Business vs personal use

9. Working from home - example
• £800 house monthly running costs
• Mortgage interest, rent, utilities, council tax,
insurance, relevant repairs
• Use 1 room out of 6
• Exclude bathrooms
• Spare room, used 60% for business
• £800 x 1/6 x 60% = £80 per month

10. What income do I need to declare
• Selling advertising space
• Google AdWords
• Cash payments for writing review or blog
• Affiliate income
• Payments in kind
• Include in tax year when earned

11. Payment in kind
• Where you receive something other than
cash, for example:
• A product or service
• Vouchers or discounts
• OK if for personal use
• Taxable if intend to sell, at lower of market
rate of product/service and the usual rate
you charge

12. Sole trader support package
• Accounting help for a fraction of the cost
• Tailored advice for your circumstances
• Bookkeeping template
• Helpsheets and tax return guide
• Ongoing email support
• £12.50 a month

13. Questions

14. Contact Details
Georgina Rollings
Starfish Accounting Ltd
01628 299 310
info@starfishaccounting.co.uk
http://www.starfishaccounting.co.uk
http://
www.facebook.com/StarfishAccounting
http://twitter.com/#!/StarfishAcc