Earning money online the legal way.

[!LLu$!0N]

I put this here because it's based on buying and selling websites, earning large sums of money through paypal, then withdrawing it into my bank.

For example, i have a normal job earning my first income (in most circumstances this is the case) then as a bit of extra money i earn money on the internet, what sort of tax regulations and other sort of legal steps would i need to take without getting into a lot of trouble doing this?

I'm not on about small withdraws of like £200 - £300 i'm on about on a larger scale of about £1,000 to £5,000 or even more in some cases?

As i've got many domains that are going to be developed this year i'm going to sell them on, start fresh and do it all over again, so i could be looking at earning £10,000 - £20,000 or even more in some cases.

I'm from the UK what steps should i take?

Thanks for any help,
Jamie

 

[-NC-]

Until recently I lived in the UK.

My advice to you:

Option 1: Get an accountant ( they will pay for themselves in getting tax exemptions )
Option 2: Don't declare it

I chose option 1. Accountant cost: £250, saved me in taxes: £XXXX

 

[philski]

Legally,, Screw the accountant.

do you pay VAT on exports in your country? Im presuming your in business and are registered.. etc, so you should know!
see http://customs.hmrc.gov.uk/channels...HMCE_CL_000130&propertyType=document#P93_6284

2.1 is the answer your after,.

how you go about making "your" business "fit in the groove" is up to you,

In Australia (where i'm based) all exports are GST free

And, 2% of my earnings (statstically) is from Australia. so ,,,, im 98% tax free... when i earn $100,000 per year online, as i do, Plus my 3 online jobs,, i payout $181.00 in tax.... on $100K

AU$181.00 tax - $100K turnover

the internet is global commerce/


Want an accountant???
Phillip

 

[!LLu$!0N]

Thanks for the replies, it's not a registered company it's work i'm doing all alone from home and doing my full time job in the day.

Nothing to do with anything business related.

Regards,
Jamie Hann

 

[shockie]

AU$181.00 tax - $100K turnover

i think that jamie is more concerned with the income tax part of not reporting his side income.

at the level of money that you're withdrawing into your bank from paypal, i believe that they will make a note of it as they probably have to legally. the british irs will probably look into it if they notice the discrepancy in your reported income and these sizeable extras coming into your bank account.

 

[moby]

I believe - Revenue Depts in some countries require - Paypal to notify them of tranfers to private bank accts ?
If more than - 5 or 10 thousand Euro/£ annually etc.

Do or Can - The UK revenue (Her Majesties ? whatever Backdate & Review previous years earnings. Some Countries Can and Do Check and Claim Loss Taxes 5,7 years previous. Can result in penalty interest etc.

 

[-NC-]

In Australia (where i'm based) all exports are GST free

Sales Tax != Income Tax

If you earn income, the australian govt will want a cut.
http://www.ato.gov.au/individuals/content.asp?doc=/content/87082.htm