I am a full time employee. As a hobby I’ve started creating web pages on free platforms (free hosting and free sub-domain); those pages also include affiliate links from Amazon or eBay. Let’s say I will, at some point, make £20 per year. Do I have to declare myself self employed, start filling in self assessment forms and pay tax to Inland Revenue for £20 of additional earnings (on top of my annual salary)?
If not, being a negligible amount, then what is the threshold (if any) above which you have to declare yourself self-employed and start paying taxes? If there is no exact threshold, does this mean that the Inland Revenue is expecting getting taxes from (let’s say) a person that makes online a £1 profit (paid into his bank account) from selling one item on eBay?
Thank you.
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Is There A Threshold Over Which You Have To Declare Additional Income And Pay Income Tax In Uk?
Posted on February 17, 2011.
all income needs to be declared
I ntheory all is declarable – in practice it depends. Probablly easisest just to register for Self Assessment – it’s quick and easy – because if you don’t HMRC will discover the activity and will ask questions.
Yes, as you’ve found out the official threshold is £1.
But if you really only make small amounts (and I mean up to a few hundred pounds each year) I would just write to HMRC and give them the details. They may adjust for this on your code number and keep you out of self assessment.