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Affiliate Marketing Earnings - Taxable Income?

by GoodnightSweetRatRace
12 replies
I understand that Affiliate Marketing earnings are taxable income?

Whats the threshold before you start paying tax? And how do you go about paying it? (In the UK)
#affiliate #earnings #income #marketing #taxable
  • Profile picture of the author Will Edwards
    You declare it on your IR Tax Return. There is a separate section for additional earnings outside your normal day job. Man I hate paying that 40%!

    Will
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    • Profile picture of the author GoodnightSweetRatRace
      Originally Posted by Will Edwards View Post

      You declare it on your IR Tax Return. There is a separate section for additional earnings outside your normal day job. Man I hate paying that 40%!

      Will
      So If I were earning a full time income affiliate marketing, would I need to register as self employed online at HMRC?

      How do you go about recording your affiliate earnings? Do you just use bank statements?

      I'm sorry for asking these questions, I've been employed all my life and this is new to me.

      Thank you.
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  • Profile picture of the author Melanie Crouse
    40%???? Good God! I thought we were being gouged here in Canada! Ouch!
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    • Profile picture of the author Will Edwards
      Originally Posted by Melanie Crouse View Post

      40%???? Good God! I thought we were being gouged here in Canada! Ouch!
      It's a consequence of being in a high tax bracket. Lower rate is 25%. I suppose I should be grateful, but I still hate the thought of 40% of my hard earned marketing income going to the taxman.

      Will
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  • Profile picture of the author bezzerbrown
    40% is a lot my friend, but when your making alot off $$$$$$$$$ online you dont care becase you know how to make more the next year : )
    bezzer brown
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    • Profile picture of the author Joe Benjamin
      Originally Posted by bezzerbrown View Post

      40% is a lot my friend, but when your making alot off $$$$$$$$$ online you dont care becase you know how to make more the next year : )
      bezzer brown
      This may be true, but it doesn't make it right. The best
      way I know to put that 40% money to good use is to
      take what would have been taxable income anyway and
      put it towards Real Estate.

      Not only is it infinitly tax defered passive income, but for
      many it's a LEGITAMATE tax shelter. And, it's just the
      way it SHOULD be. If the government so much as thinks
      about changing the real estate game, the economy will
      go to hell.

      I think they know this, that's why the real estate market
      works so well and creates alot of wealth, alot of homes,
      and a lot of happy homes.

      Just something for YOU (the OP) to seriously consider.

      Think about it...instead of it going to waste with the gov
      ernemtn, they would rather see it re-invested into the
      housing sector...which means more money for you to make
      and more people you can help.
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  • Profile picture of the author bestIMtools
    I'm no tax consultant, nor am I in the UK, but you should be able to show your expenses and that would lower your tax bill. Here in America, the best way to avoid double taxation is starting an LLC. Again, ask your CPA.
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    • Profile picture of the author Will Edwards
      Originally Posted by bestIMtools View Post

      I'm no tax consultant, nor am I in the UK, but you should be able to show your expenses and that would lower your tax bill. Here in America, the best way to avoid double taxation is starting an LLC. Again, ask your CPA.
      Yes - that's true, you only pay the 40% on profit, not income.

      Will
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  • Profile picture of the author ChrisBa
    Originally Posted by GoodnightSweetRatRace View Post

    I understand that Affiliate Marketing earnings are taxable income?

    Whats the threshold before you start paying tax? And how do you go about paying it? (In the UK)
    Yes, pretty much all income is taxable

    Sorry I'm not from UK so I can't answer the second
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  • Profile picture of the author kyhell
    get yourself a good CPA!
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  • Profile picture of the author blackjack
    Originally Posted by GoodnightSweetRatRace View Post

    I understand that Affiliate Marketing earnings are taxable income?

    Whats the threshold before you start paying tax? And how do you go about paying it? (In the UK)
    Call HMRC office. Check your last P45 or your last payslip and it has your tax reference. Tell them you have income & your full time job. They will send you a form which needs to be submitted to them by Oct ( Posting) or Jan following year ( online submission).

    With regard to 40% tax, it is only charged on Net Profit or Net Income over certain amount. So first 25k income you only pay basic tax rate.

    It is much better to get an accountant.
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    • Profile picture of the author meh
      Banned
      [DELETED]
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      • Profile picture of the author Linda Sweetfield
        I am in Ireland so more or less the same situ. Get yourself a good accountant, a lot of what you make can be tax deductible, you would be amazed at the things that are. A good accountant will know all these and could save you a fortune
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