Tax - Accounting for Domain Names and accounting issues

[sparks]

Can anyone here recommend a good accountant for domainers who understands any tax advantages for accounting for domain names?

 

[retired_member4]

Don't declare.

I'm an accountant, and this is not professional advice, but why tell IR about something they have no understanding of?

Domains are worth 3 quid a year in their eyes, not worth bothering about.

 

[domainseller200]

Hmmm interesting advice

In which context do you mean that ?

 

[retired_member4]

In the context of, what they don't know etc etc

It is in no way professional advice

 

[golddiggerguy]

Why not declare them?

It cut my VAT bill down quite a bit by declaring I bought domains and I get revenue from Adsense which is USA money so no TAX to declare there anyways.??

Or am i missing something else.

 

[retired_member4]

If a sole trader then you have nothing to gain by declaring.

If a LTD company then obviously benefits can be had.

Depends on each individuals circumstances

 

[mat]

I think being an accountant and advising on a public forum for people not to declare income of any sort is treading a fine line. Most make thousands of £ from domain names.

 

[retired_member4]

I think being an accountant and advising on a public forum for people not to declare income of any sort is treading a fine line. Most make thousands of £ from domain names.

Not really, as I said, it's not professional advice, just an opinion.

If you ask me in a professional capacity I WOULD advise you declare everything, but I'm on this forum as an individual not a professional

 

[doodlebug]

I fully intend on paying tax where applicable, though most of my money is reinvested

 

[aZooZa]

These old arguments continue to surface regularly. If you repatriate income earned in the USA then you are tax-liable. If you have a significant portfolio in terms of capital value and income then you need the advice of an offshore specialist. You can vest the ownership of such domains offshore and operate a 'lend/lease' agreement whereby a modest amount of income is paid to you in the UK by your offshore entity. This allows you to repatriate and declare funds to suit your circumstances. It can also obviate capital gains tax if you should happen to have high value sales. But then you have to be prepared to keep your money abroad.

Quite frankly, I have never seen an accountant declare themselves as such, and then suggest tax evasion, even on a personal basis. Tax avoidance is fine, but hey, this is serious stuff.

See an accountant. Stay within the law and be prepared to be able to declare all of your interests to HMIT. They are not stupid. You can mitigate your exposure to tax liability but transparency is the key.

My 2p.

 

[mally]

I did create Tax Evasion Schemes but never added anything of use lol