Brit mums live 2013 blogging foundations accounting
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Blogging Foundations:Accounting22 June 2013
Introduction
Georgi Rollings ACA
Mum of 3 year old twin girls
Introduction
• Blogging: trade or hobby
• What expenses are tax deductible
• Working from home
• What income do I need to declare
• Payment in kind
Blogging: trade or hobby
• If you earn income from your blog then:• Register as self employed with HMRC• Annual self assessment tax return• Pay income tax and self employed NICs
• Not a hobby if you intend to make money • Selling advertising space• Signing up for Google AdWords• Accepting payment for writing blogs
What expenses are tax deductible
• Incurred “wholly and exclusively” for your trade• Telephone• Broadband• Website costs• Professional fees• Marketing costs• Conferences and associated travel
What expenses can’t you claim
• Childcare
• Entertaining
• Subsistence costs e.g. lunch, coffee – must involve overnight stay
• Personal expenses
Capital expenditure
• “Capital allowances” vs. allowable business expense
• Annual investment allowance on tax return
• Computer, printer, office furniture, etc.
• Can “disclaim” capital allowances if not paying any tax
Working from home
• Small weekly allowance for every week you do any work from home = current level is £4 per week
• OR calculate use of home as office cost:• Number of rooms• House running costs• Business vs personal use
Working from home - example
• £800 house monthly running costs• Mortgage interest, rent, utilities, council tax,
insurance, relevant repairs
• Use 1 room out of 6• Exclude bathrooms
• Spare room, used 60% for business
• £800 x 1/6 x 60% = £80 per month
What income do I need to declare
• Selling advertising space
• Google AdWords
• Cash payments for writing review or blog
• Affiliate income
• Payments in kind
• Include in tax year when earned
Payment in kind
• Where you receive something other than cash, for example:• A product or service• Vouchers or discounts
• OK if for personal use
• Taxable if intend to sell, at lower of market rate of product/service and the usual rate you charge
Sole trader support package
• Accounting help for a fraction of the cost
• Tailored advice for your circumstances
• Bookkeeping template
• Helpsheets and tax return guide
• Ongoing email support
• £12.50 a month
Questions
Contact Details
Georgina Rollings
Starfish Accounting Ltd
01628 299 310
http://www.starfishaccounting.co.uk
http://www.facebook.com/StarfishAccounting
http://twitter.com/#!/StarfishAcc