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Brit mums live 2013 blogging foundations accounting
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.
Brit mums live 2013 blogging foundations accounting
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- 2. Introduction Georgi Rollings ACA Mumof 3 year old twin girls
- 3. Introduction • Blogging: tradeor hobby • What expenses are tax deductible • Working from home • What income do I need to declare • Payment in kind
- 4. Blogging: trade orhobby • 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 aretax deductible • Incurred “wholly and exclusively” for your trade • Telephone • Broadband • Website costs • Professional fees • Marketing costs • Conferences and associated travel
- 6. What expenses can’tyou claim • Childcare • Entertaining • Subsistence costs e.g. lunch, coffee – must involve overnight stay • Personal expenses
- 7. Capital expenditure • “Capitalallowances” 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 doI 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 supportpackage • 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
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- 14. Contact Details Georgina Rollings StarfishAccounting Ltd 01628 299 310 info@starfishaccounting.co.uk http://www.starfishaccounting.co.uk http:// www.facebook.com/StarfishAccounting http://twitter.com/#!/StarfishAcc