Google ads and the tax man

Xaccers · 27-03-2007, 11:38

I was wondering what the proceedure is for delcaring google ads income to the tax man?
I run several forums and with the visitor numbers I'm thinking of using google ads or similar but don't wish to run foul of Mr Brown.
I'm sure the income will be below any tax limit thresholds, but would I be right in thinking that as an extra income it must still be declared?
What does CF do?
Are there any forms I need?

punky · 27-03-2007, 12:27

Moved to Internet discussion

topcreator · 27-03-2007, 13:45

IIRC, Google automatically deducts tax before they send your payment to you

**Rob** · 27-03-2007, 14:12

Google adsense is based in USA, so any tax deducted would be US not UK income tax.

Xaccers · 27-03-2007, 14:48

Quote:

Originally Posted by Rob

Google adsense is based in USA, so any tax deducted would be US not UK income tax.

As it's income gained while in the UK, do you know if it's subject to UK tax as well?

Done a bit more digging, looks like does have to be declared as part of income.
That's cool as I could have it done as a service by my company so it wouldn't be classed as a second job, otherwise it'd be second income which is what? 40% of all earnings? That'd suck most of the income.

I suppose donations are treated differently as the money is going for something specific rather than just an income.
Hmm, food for thought.
Bloody Gordon Brown!

**Rob** · 27-03-2007, 16:23

Even if the income is taxable, you should be able to offset the costs incurred - web hosting, any software licencing, design costs and stuff

Xaccers · 27-03-2007, 16:35

Quote:

Originally Posted by Rob

Even if the income is taxable, you should be able to offset the costs incurred - web hosting, any software licencing, design costs and stuff

Well the purpose of the ads would be to aid towards the running costs.
At the moment it's donations.
I just don't want the tax man coming along saying "Hang on you got an extra Â£100 here that you didn't declare" you know?

I had fun and games with self assesment before and that was on PAYE where thanks to rounding errors I owed the tax man a stonking Â£1.61 along with threats of a Â£100 fine (turns out they actually can't fine you more than the tax you owe so it would have been a Â£1.61 fine, plus interest).
As it is I've got to check with the tax office as I think they've given me the wrong code.

andygrif · 27-03-2007, 17:13

Quote:

Originally Posted by Xaccers

40% of all earnings? That'd suck most of the income.

40% isn't most, it's under half. But you'd be able to claim costs of income, such as telephone calls, part of your hosting and ISP fees etc. Get a good accountant.