Brit mums live 2013 blogging foundations accounting

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

[email protected]

http://www.starfishaccounting.co.uk

http://www.facebook.com/StarfishAccounting

http://twitter.com/#!/StarfishAcc