This time last year my blog was still a hobby, I hadn’t earnt a penny, but I started to get offers for sponsored posts…
What was I going to do?
I was on maternity leave and that pay is practically zilch. A few extra pounds from my blog would help to make up some shortfall. So I decided after the new tax year started to take up these offers, because I was so close to the end of the current tax year I thought waiting a couple of weeks would give me time ( a year!) to get my head around the whole tax self-employed thing!
In the middle of April 2016 I became self-employed for the first time in my life (I’m also employed as well in my day job, to complicate matters!)
To begin with I was scared, you don’t have the security of an employer taking out your tax and NI each month. It was my job to not spend all my earnings, to put some away for this tax bill that I knew would be looming soon.
It was fairly easy on the HRMC website to register as self-employed. I recommend you do this as soon as possible once you start earning even a penny. You will get your own UTR (Unique Tax Reference) sent out to you, plus you don’t want to get caught out and find yourself in trouble. If you ever need help with your accounts, tax and advice, why not use Brighton accountants Plummer Parsons?
Where do bloggers get their earnings from?
This can be anything where you have a monetary gain but can include:
- Sponsored Posts
- Affiliate Earnings
- Social Shares
- Sample items sent for review purposes then you sell them on.
- Keep a track of all income. Some people have spreadsheets, I have a book to help me keep on top of everything.
- File all receipts that you want to claim expenses back on.
- Submit your tax return
- Depending on your circumstances you may need to pay for your Class 2 National Insurance Contributions.
The personal tax allowance for 2016-17 is £11,000 and is rising to £11,200 in 2017-18. This means if you earn under that amount you won’t be liable for tax, but you still need to register.
If you have any questions at all about registering for self-employment, get in contact with HRMC they will be always there to help you.
I hope you find this post useful if you are starting out on monetising your blog.
Thanks for stopping by and as always I love to read your thoughts.