Do these Instagram begs have to pay tax on their Insta incomes? If Ben earns from sales of water bottles, that’s his income so surely he should need to set up his own company and submit his tax returns? Beggy Ben Limited?
Genuine question. I’m more than happy to write to HMRC about him.
Is he on the dole AND earning via Insta?
Googled it:
Making money with affiliate marketing is a great way to earn yourself some extra income, or even as a full time profession. However, let’s not forget about the taxes too. If you are a UK based affiliate, here’s what you need to know about paying taxes on the income you’re earning from affiliate marketing.
Guide to Taxes from Affiliate Marketing Income in the UK
Self assessment tax returns
If you are employed, Income Tax isn’t something you normally need to think about – it’s deducted automatically from your wages. But if you are earning other income then you need to report this by sending HMRC (HM Revenue and Customs) a tax return form so that they can calculate the amount of tax you need to pay.
If you are earning money as an affiliate, then you will most likely need to fill in a self-assessment. If you earned money from a very small number of trades, e.g. you sold a website and got a £500 one time payment, then you can simply fill the self assessment.
But, if you want to offset costs like hosting, domain, content outsourcing, then you will need to register as self employed first.
Most affiliates will be classed as self employed – even if you still have another job working for someone else.