Advice around Tax & Expense for a YouTube Channel

witnessmenow

Hey,

I have a pretty small YouTube channel (around 4k subs) that generates some revenue that I would like to find out where to go to get information regarding Tax for it. 

Give or take it generates around E100 a month through YouTube Ads, Twitch subscriptions and affiliate links. This number has been growing, but not significantly, in a good month I might see a 10% increase. I also plan to sell physical kits in the near future.

I am in full time employment other than the channel (at the higher rate of tax)

Does anyone have any suggestions or links to where I could find out more about the tax situation with this income? As the amount of money is so low I presume an accountant is out of the question.

I understand that any income I make should be reported as part of a self assessment, but I am very confused at the expense situation with this. As I understand it, I can take out expenses from the revenue generated that I won't need to pay tax on, but I am not sure what is considered as an expense. I have come across this link, but not sure if there is something better. 

Here are some examples of what I can think of.

• Equipment such as computers and cameras - Probably
• Internet - not sure, it is a requirement for the channel, but it was there before the channel and would be there without it.
• Domain names & Hosting - Probably
• Goods that I use and review on my channel - I've no idea, like technically it was an expense for me in order to generate the revenue, but I'm not sure it is seen that way?
• Goods for the physical kits - Should be covered by the buying to resell

I would appreciate any feedback or advice you can give on this!
Brian

EDIT: I can't edit the text below this line for some reason

duploelabs

You have to do an additional income submission for your 2017 earnings this coming October. As for what's applicable as right-offs as business expenses you'd need to engage an accountant, but from what you described there it seems pretty reasonable and there may be more that you could but as I said only your accountant would be in a position to advise concisely

Gloomtastic!

Before you engage an expensive accountant, add up what you think you spent over the year - your list is pretty good for starters (but you must have receipts/invoices for everything - no receipt, it doesn’t count). I’m pretty sure, from what you have listed) it will come to more than your revenue for the year.

How does that affect his tax liability?

witnessmenow

Gloomtastic! wrote: »

Before you engage an expensive accountant, add up what you think you spent over the year - your list is pretty good for starters (but you must have receipts/invoices for everything - no receipt, it doesn’t count). I’m pretty sure, from what you have listed) it will come to more than your revenue for the year.

How does that affect his tax liability?

I have receipts for everything for sure as they are all digital. I did not get paid anything in 2017 so I'm ok for that, but I need to make up a income and expenditure list for 2018

In total I would be surprised if I don't run a loss running the channel if you include the stuff I buy to use and review. Sure internet bill alone would be close to half what I earn.

Also so far in 2018 I have only actually been paid $25 or something, everything else has been earned, but not paid out (for example I have money in my Aliexpress affilate account that I can get transferred to my Bank Account (at a cost of $15)

I would assume my PAYE tax remains unaffected regardless of how much I make here as I'm already at the higher rate of tax?

In an ideal world I would engage the services of an accountant, but It just seems like madness to do that with a yearly gross earning of $1k, I would probably end up giving most of it to them. My hope is to try 10x that over the next 18 months or so (which is ambitious, but a guy can dream!) and maybe it's a good idea to get advice upfront to take steps to reduce my tax liability (I don't want to dodge tax, I want to do this above board, but I don't want to be throwing away money either)