Affiliate Question

[cah1234]

Hello,

I currently have a website where i offer discount codes. I advertise these through social media and drive traffic to the site.

In order to get the discount codes i had to sign up with some affiliate sites.

I DO NOT want to earn money from this and do this purley for fun in my spare time as i find it enjoyable. I have not entered my bank details on the affiliate sites so do not get paid, however the commission gets added to the affiliate site but as my bank details are not entered i dont get the money, it just sits there.

As i said, i do this for fun, because i enjoy it, but it doesnt bring in enough money for me to turn it into a business and deal with the grief of tax returns etc.

My question is, is this still classed as a business and do i need to declare it as a business (or stop doing it) or am i pefectly ok doing what im doing?

Please note, this is a serious question.

Thanks

 

[baldidiot]

Hello,

I currently have a website where i offer discount codes. I advertise these through social media and drive traffic to the site.

In order to get the discount codes i had to sign up with some affiliate sites.

I DO NOT want to earn money from this and do this purley for fun in my spare time as i find it enjoyable. I have not entered my bank details on the affiliate sites so do not get paid, however the commission gets added to the affiliate site but as my bank details are not entered i dont get the money, it just sits there.

As i said, i do this for fun, because i enjoy it, but it doesnt bring in enough money for me to turn it into a business and deal with the grief of tax returns etc.

My question is, is this still classed as a business and do i need to declare it as a business (or stop doing it) or am i pefectly ok doing what im doing?

Please note, this is a serious question.

Thanks

How much are we talking about? If it's pennies, I can maybe see your point (but don't have an answer to your question I'm afraid).

But if it's more then I don't see why you wouldn't want to take the money - it's not a headache at all really, just get a decent accountant to do it and all you'll have to do is sign the occasional form (my old house mate had a local guy do his self assessment for £80).

 

[cah1234]

How much are we talking about? If it's pennies, I can maybe see your point (but don't have an answer to your question I'm afraid).

But if it's more then I don't see why you wouldn't want to take the money - it's not a headache at all really, just get a decent accountant to do it and all you'll have to do is sign the occasional form (my old house mate had a local guy do his self assessment for £80).

The site has earned about £10 in the last month.

I didnt want to start a business from it as im already in full time employment. Wouldnt having a side business cause complications with tax and benefits? Plus for the sake of earning approx £50 a month, is it really worth it?

 

[max99x]

I would enter your bank details then every time you get paid , pay the exact amount to a charity, for the amounts you're taking I wouldn't bother about saying anything to the tax man. May as well give the cash to a good cause rather than sitting in the affiliate networks bank account. If you do do this may I suggest cancer research as a charity

 

[Murray]

I DO NOT want to earn money from this and do this purley for fun in my spare time as i find it enjoyable.

I understand hobby sites, but making a discount site just for fun is a new one

 

[mally]

How old are you and do you have any other income? You might aswell earn the money yourself!

 

[Edwin]

While I can appreciate your dilemma, I think the tax man might see the money as "earned" even if you don't actually get as far as popping it in your bank account. From the point of view of the affiliate network, it will be allocated on their books as owed to you.

 

[cah1234]

How old are you and do you have any other income? You might aswell earn the money yourself!

I'm near on 30 and in a well paid full time job. If I was making a few hundred a month it would probably be worthwhile.

 

[cah1234]

While I can appreciate your dilemma, I think the tax man might see the money as "earned" even if you don't actually get as far as popping it in your bank account. From the point of view of the affiliate network, it will be allocated on their books as owed to you.

I think you may be right. This was what I was worried about.

How long do you have before you are required to inform HMRC?

 

[bonusmedia]

For the sake of £100 per year (so somewhere between £20 and £45 in tax) it is not worth HMRCs' time or yours dealing with a return.

http://www.hmrc.gov.uk/incometax/non-paye-income.htm

If you're concerned you can give them a ring and get it added to your PAYE tax code.

If it got to be much more then you'd need to go through Self Assessment (and get an accountant, they save you much more than they cost).