Wednesday, 9 November 2016

What You Need To Know About Self-Employment, Taxes and HMRC*

*This is a collaborative post* 

Self-employment. Sticking it to the man. Being your own boss. Sorry, #girlboss. It's every blogger's dream, right? To quit the day job and go full time with your blog, which, by that point, is making you lots of money?! Okay, so I know it's not every blogger's dream, but it is mine. And I make no secret of the fact that I monetize my blog. I take on sponsored posts, I offer advertising spaces, I review products. But did you know that if you make any income from your blog, even if it's just £20 a month from advertising spaces, you need to be declaring this income to the taxman? Now, I'm by no means an expert when it comes to taxes, but I've picked up a thing or two over the last year and today I'm going to share with you what I know.

1. As soon as you start making money (or start thinking about making money) from your blog, you need to register as self-employed, and declare your earnings. It sounds more complicated than it is. You can register online here, and the process only takes about ten minutes.

2. When you think of income from your blog, don't just think of monetary gain (sponsored posts, advertising etc). You might be surprised to learn that products you receive in exchange for a review on your blog are classed as income too and, as such, are taxable. 

3. Keep a record of all your earnings. I advise keeping a copy of all invoices in a dedicated folder on your computer, or in the cloud, and logging all of your blogging income in a spreadsheet, or a notebook if you're not such a fan of Excel!

4. Look into what you can claim back as expenses. Business expenses are anything that aids your business. This could include, but is not limited to; laptops, cameras, travel costs etc. When you fill out your tax return, dig a little deeper into what you can claim back!

5. Remember to fill in your tax return. Once you've registered as self-employed, it can be all too easy to sit back and forget all about it. But forget to fill in your tax return, and you'll find the taxman breathing down your neck. A paper return needs to be completed and returned by 31st October, an online return by 31st January.

If you're completely new to the world of taxes, as I was, it can feel a little daunting. If you have any concerns about how to register, or fill in your tax return, or questions about business expenses or taxable income, it's always best to give HMRC a call. And you can find all their contact details right here. Contact Number UK have the number to call if you want to skip the queues (and who doesn't?!) and lots of helpful advice about HMRC and whether you need to call them or not!

Do you want to go full-time with your blog one day? Or are you already a full-time blogger? 

Post a Comment