UK - Help with taxing online earnings.

I know if you live in the US, Clickbank sends a 1099 form to you and the IRS to verify earnings. Do they do the same sort of thing for the UK?

No we dont have that here as far as im aware.

First thing I would advice you to do is to find your local branch of Business Link - they are very helpful when you are setting up your own business and will make sure you have all the correct things in place. You're off to a good start by telling HMRC.

I don't use an accountant. I have done in the past, and I would certainly advice you to do so for a couple of years so you get to know what you can and can't claim for.

As for Clickbank - I keep screenshots for my own records, but your ultimate income from there is what they pay into your bank.

When you are self-employed you have to keep your records for (off the top of my head I can't remember which) 5 or 7 years. Check that with HMRC. I keep mine for at least 10 years.

You don't have to submit any of these records to the IR unless they inspect them. I file my accounts online and the form is fairly simple.

You can use an accounting program to keep your records before filling them online or a spreadsheet. I have always used a spreadsheet. Not ideal, but it's how I started and it suits me.

Make sure you keep a record of expenses - domain reg, hosting, WSOs purchased, etc.

I would recommend you talk to someone like an accountant or HMRC. However, basically you will be self-employed or a sole trader so taxes/financial documents are relatively simple.

Just keep a record of all income (Clickbank income in bank account) and then deduct any expenses (hosting, PPC e.t.c). You will then be paying tax on this sum (likely 20% + National Insurance) after your Personal Allowance.

But the basics is

income - expenses = money you have to pay taxes for.

Hope this helps and note this is a simplistic basic guide, talk to someone in the know!

Edit: It is always good to keep invoices/receipts of expenses!

What I would suggest have a look at everything you can claim for, I mean everything, I used to work with a tax specialist who used to work for a British based multi-national company his advice to me was ''most hmrc staff have not got a clue, dont break the rules just bend them'' when I asked him what his meant ''unless they tell you , that you cant claim for it, claim for it'' first thing I would claim for is, electricity (if working from home at least 75%) as my three pcs stay on at all times, tv, tv licence, sky (as these products help research future niches). Do I have to go on lol.

Also one thing I have found, in 10 years of running self employed / sole trader business I was only ever brought into question once.

If all fails, Federation of small business is a must (this is a membership programme for uk based business), I think it costs £245.00 a year, on top of all the good things, the one I found the best is free legal advice and if you do get investigated they represent you for free, they have over 100 staff, who are ex hmrc with at least 20 years knowledge (these guys are worth alot more than the membership)

Hope this helps.