So you want to make money from WordPress? - tax tips

Human Madeso you want to make money from WordPress?

about me

jane falconer-white

@janefalcwhite

hmn.md

kfaccounting.co.uk

why is this important?

" In this world nothing can be

said to be certain, except death

and taxes." (Benjamin Franklin)• HMRC aren’t always too friendly

if you get on the wrong side of

them• Make the most of your hard

earned money• Better business person• Don’t be an ostrich!

you’ll turn into lord business!

just kidding

what am I?

Tax situation v Job descriptionEmployed

Self Employed / Sole Trader

Partnership

Limited Company

what is self employment?

Working for yourself to earn income

“But I’m employed”

“But I’m only being paid cash”

“But I don’t make a profit”

“But I don’t get paid anything”

“But I don’t take the money out”

what does it mean for me?

Register as self employed for self assessment

Self employment NI contributions

Submit a self assessment tax return

Self employment profit added to employment income

You are your business(same legal entity)

the good, the bad and the ugly

Only one tax return to do

It’s your personal money

It’s also your personal debt

And your personal tax liability

IR35

the dreaded IR35

Issue for contractors and freelancers

Are you employed or self employed?

Judged on a contract by contract basis

HRMC employment status indicator tool

do I need an accountant?

How much do you like numbers?

How organised are you?

Are you interested?

Good for advice and specialist knowledge

Accountant v. book keeper

get your ****organised!

Business bank account

Keep your receipts

Proper invoices

Get a system

Get a routine

in the cloud

expenses are my friend

use of home

1. Proportion of costs based on the area of your home used as your office• Utility bills• Home insurance• Mortgage interest

Or

2. £4 per week

motor expenses

Keep track of any business mileage (not including travel to normal place of work)

1. Full Cost - business percentage of all costs (based on business mileage)• All running costs• Cost of vehicle

2. Mileage - based on business mileage• 45p per mile to 10,000 miles then 25p per mile

other useful expenses

Travel and subsistence

Mobile, landline and broadband

Training

Your new MacBook Pro = capital allowances

sorry but no

Business entertaining

Fines and penalties

Self employed NI contributions

Childcare costs

Personal use

Not all the money belongs to you

tax planning tricks

Tax doesn’t just come once a year

Can get a January double-whammy

Save each month

Magic number is around 25% income

“This isn’t the tax you are looking for.”

alternatives

Limited Company

Umbrella company

Employment

useful links

HRMC employment status indicator tool - http://www.hmrc.gov.uk/calcs/esi.htm

Registering for self assessment online - https://online.hmrc.gov.uk/registration/newbusiness/introduction

Thanks!

@janefalcwhitehmn.md

kfaccounting.co.uk