Are you a business

[techtimmy]

I started dabling in domains recently. Still to make any money but i'm enjoying myself blogging and stuff.

Just wondered from a UK perspective, are people declaring the money they make to government or all you all keeping it on the hush hush. I bet it's easy to not decalre your profits if you are just trading domains on your own or making a fair bit through adsense.

Would like to know in case I ever make it big in domaining

 

[stevebrowne]

I'm have my own ltd company, and domain buying, ad revenue and affiliate income is a part of that business. My company owns all the domain names, and reports any income through the books - if you don't you are inviting a whole world of pain.

 

[rob]

Just wondered from a UK perspective, are people declaring the money they make to government or all you all keeping it on the hush hush. I bet it's easy to not decalre your profits if you are just trading domains on your own or making a fair bit through adsense.

Why wouldnt you declare it, and why would it not be easy ? It is like any other business, cash in, cash out and hopefully profits

 

[ScottJ]

I have a mate who always says if he's paying plenty tax he's making plenty money.

I have 5 partnership returns that I am doing just now for 07/08 for a few different venture with other people and another 2 new partnership for next year created, with the smallest one only making a couple of thousand it's still all declared. With capital gains tax at a flate rate of 10% for your first million and a yearly allowance of £9k it's a good time to make money from the odd sale and still declare everything without feeling too bad about it.

 

[techtimmy]

I'm just a Joe Blogs you see. Don't have a business of my own, just trying to make a bit o' money from mini-sites.

Don't really know much about the tax side of things thats why I was asking. Is it worth some one who only makes £100.00 a year declaring anything?

 

[mat]

I dont think your going to have much luck getting people to advise you not to pay tax on a public forum.

You dont need to have a business or own a company to declare tax. If your thinking of earning a bit of money every year outside of your normal job just request to do self assessment with the inland revenue.

All you will have to do is declare your profits on your sales and pay the fee to the man. Not nice giving away your profits I know but we all have to pay it!!!


Your rewarded in the long run with PERFECT roads, FANTASTIC health system, no crime, and children dancing round trees holding hands and singing all around the UK

 

[stevebrowne]

Your rewarded in the long run with PERFECT roads, FANTASTIC health system, no crime, and children dancing round trees holding hands and singing all around the UK

Ha ha ha !

 

[monaghan]

It only takes 1 unhappy person to report you to the HMCE fraud dept and you then get investigated. For the small amount of tax you'd pay on £100 is it worth having the tax man investigate you? If you really don't want to pay tax on the profit, then make no profit by investing it back into the business - new PC, upgraded hosting account and so on.

 

[techtimmy]

Cheers for the responses guys. I'm looking forward to mat's utopia when it finally rolls around

 

[mally]

Well, I work fulltime and have a part time hobbie which is my business.

I remember my first montly payment was £15. I couldn't get it though as the payout level was set at £25.

Every month though what I did earn I reinvested and so on.

Its 2 completed tax forms later and on the last one I declared £100 profit. I had earned about £16000 but had spent £15,900 on business purchases like new domain names, hosting, advertising etc..

This year I'm not spending a penny on advertising but I'm now at the position that I will be getting a healty profit.

If only my wife would let me quit my secure job which i HATE!

If I ever get divorced I will quit my job and take up the internet business full time.

Stick at it mate and best of luck!

 

[kennyboy]

I was also in a job that I hated with a Wife that scoffed at the thought of me packing it in to work the net full time. After much thought I bought her flowers etc then took her out for a great meal at a top place then....got her very pissed on expensive wine. Took her home and made passionate love (I was quite sober) then I convinced her that it was time for me to resign from my job......better life...more cash etc etc. It worked! We have never looked back

 

[retired_member26]

Your rewarded in the long run with PERFECT roads, FANTASTIC health system, no crime, and children dancing round trees holding hands and singing all around the UK

Sorry but I could not resist:

Or more bombs raining in Basra on Iraqi people.

TurNIC

PS: I admire the tax culture of British people though