ysabetwordsmith: Cartoon of me in Wordsmith persona (Default)
ysabetwordsmith ([personal profile] ysabetwordsmith) wrote in [community profile] allbingo 2014-01-16 06:47 pm (UTC)

Hmm...

>> I've just googled that and it looks like a US thing (maybe equivalent to Sole Trader over here?). <<

Sorry, my minimalist tax advice only applies to the United States.

>> I think initially it will be knowing at what point any income may have reached the level where the taxman may take an interest because, <<

You need to identify that threshold. Many countries have a "hobby" category where you're allowed to make a certain amount on something before it's expected to shift to business (and vice versa, businesses have to make a certain time or level of profit, else they're hobbies).

>> at the moment under the UK's Pay As You Earn scheme, I don't have to file a tax return. <<

Lucky you!

>> I did submit returns for a couple of years after I did a week's freelance work for a charity my mother was involved with but I really wouldn't want to get into it for something in the region of tens of dollars a year. <<

I have thought of a possible solution! Instead of accepting cash donations yourself, point the crowdfunding button somewhere else. Maybe pick a favorite charity or funnel the money into a website that uses crowdfunding, or whatever else you want to support. Some places will let you put up a button of theirs. Others you might have to say, "If you like this work, rather than sending money directly to me, please make a donation to Cause X (link) and send me your receipt to active Perk Y."

No tax hassle, and you get to support a favorite cause.

>> I know someone who works in tax so I may ask him next time I see him. I'm sure technically you're supposed to declare any income at all, but I don't suppose anyone wants to actually know that someone gave me $5 via paypal. <<

That makes sense.

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