Friday, 21 December 2018

Three Things Bloggers Need To Know About Taxes

If you’re a self-employed blogger like me, there are plenty of things you need to consider. How to ensure you always have an income, keeping up with all the changes regarding laws around data protection and copyright and ensuring you pay any relevant taxes among other things.

Sorting out your taxes can be a minefield if you have never done it before, so here are three things bloggers need to know about taxes.

You must keep good records


If you work for yourself you must register for self-assessment with the Tax Office if you earn over £1000 in the last tax year.

You need to keep good records to ensure you are filing correctly and also in case you are ever audited. Whether you choose to save your invoices and expenses digitally or printed out in a folder, keep them all together in one easily accessible place to make filing your tax return as easy as you can.

Set yourself up a good system. Some people use invoicing websites or apps that send out the invoices for the work and work out the tax that is to be paid on that so you can set it aside. They also have sections for expenses - very handy if you know you aren’t the most organised of people. Personally. I keep a simple spreadsheet with incomings and outgoings and a net amount for the year.

Having these records on hand also make it easier on you should HMRC decide to do a random audit and you get selected. You can simply hand over all the information required and not worry about it.

You need to know what expenses are allowable


Expenses are something that plenty of people get confused about. There is a lot of information out there about what you can include as expenses and what you can’t, so be sure to claim all you can.

If you are unsure of what things you can include in your expenses contact HMRC for more information. You could also consider hiring an accountant, especially if you have a significant turnover - they can offer good advice and may actually save you money.

Things I expense are travel for work (fuel, train tickets etc), the things that help me run my business (domain name, hosting, apps, stationary and websites for social media management) and similar things to this. Everyone’s situation is different regarding what they may utilise for their businesses so it is important to check with a professional to see what things you can put through your expenses.

You can check if you are entitled to a tax refund


A lot of people don’t realise this but you could be entitled to a tax refund. It’s always a nice surprise to find that the tax man actually owes you money rather than the other way round so it is important to check this. It often occurs when people change jobs and the tax code doesn’t get changed straight away. So if you have gone from regular employment to self-employment this could particularly relate to you. If you think this may have happened, there are some fantastic online tools such as this tax calculator - that can help you to find out if you are due a tax refund.

I make sure to check when I can each year and any rebate I get will be spent on jewellery, clothes or travel and most importantly treats for my family.

For further information, you can check out the GOV.UK website for information about income tax. What would you spend your tax rebate on if you were to get one?

*Collaborative post
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11 comments

  1. This is such an informative post, I was not aware that I can get a tax refund. I will be checking the link to the tax calculator to see if there is any money owed to me.

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  2. This is such a great post, I think a lot of bloggers still don't realise that they need to think about taxes and making sure they lodge earnings when they should with HMRC.

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    1. Yes, it's so important that they must think about this from day one if they are earning anything from blogging.

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  3. I must admit, this is something I've been absolutely dreading for months and definitely been putting it to the back of my mind. I cant put it off any longer though and will definitely be listening to your advice and information. Thank you!

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  4. I always keep a track of my income and outcome during the year, and I try to save a bit every so often to put towards the next years tax bill as I don't want it to be a shock x

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  5. I think this guide is handy for those who do use blogging as a source of income. Nice to see how you’ve broke down what to claim for expenses as well as it can be confusing.

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  6. I always start the year really well organised and then by the end all my receipts are thrown into a draw and then I regret it. I need an app I think so organise everything

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  7. I don't earn anything from my blog but I always try to sort my taxes out. They can be pretty daunting. Great post.

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