In the fourth installment of the Blogging for Accounting series on BritMums, Georgi Rollings of Starfish Accounting explains what income you need to declare…
These are some of the most likely types of income that you could receive from your blog:
- Selling advertising space – often over a period of several months;
- Google AdWords;
- Cash payments (including cheques, bank transfers, PayPal, etc.) for writing a review or other blog;
- Affiliate sales;
- Payments in kind, where you receive something other than cash – see the final blog in this series.
All of the above are taxable income and need to be declared in your self assessment tax return.
Make sure you include income from the correct period in your tax return. So for example perhaps you write and post a review before the end of the tax year (5 April), but you don’t receive the cash payment until after the end of the tax year, you should include it in the year where you actually did the work, not the year you received the cash.
If you sell space for an advertising campaign which runs over several months, for example March to May, you need to include the income for one month (March) in one tax return, and the other two months (April and May) in your next tax return. Again it doesn’t matter when you receive payment.
Is everything taxable?
Certain things are not taxable:
- If you receive a goody bag from a conference for which you have not had to do anything in return, that would be classed as a gift;
- Entertainment, for example being bought lunch by a company, if you don’t have to do anything specific in return then you don’t need to pay tax on it;
If you are given an item to review then it may or may not be taxable. If you are going to use the item for personal use then you shouldn’t need to declare it as income. If you are intending to sell the item then you would have to pay tax on it.
And don’t forget that you can offset tax deductible expenses (see earlier blog) against any income from your blog in order to calculate your taxable profit.
About Starfish Accounting
Starfish Accounting provides accounting, tax and bookkeeping services to small businesses and works primarily with women in business. Georgi Rollings, the founder of Starfish Accounting, is a qualified Chartered Accountant with more than 15 years experience. Georgi is also proud mum to beautiful twin girls, and juggles business and babies out of her home office in Maidenhead, Berkshire.
Tel: 01628 299 310
Email: [email protected]