Blogging All the Way to the Bank

taxes on blogging

If you love writing, whether it be to tell a story, share information, or to try to make people laugh, blogging is a great way to let your voice be heard (or seen).  In this day and age, writing blogs is a great way to make a living if you want to work from home.  If you have great writing skills and can get your page ranked online, people will start to pay you to advertise their products, sponsor their posts, and review products because they know you have quite a bit of traffic reading your site.  While it is a great way to make money if you do it right, there are certain things you need to know about paying taxes as a blogger:

Declaring Income:  As soon as you start earning money from your blog site, you should declare it.  Even if you are just making a little bit of pocket money, it is still payment for a service and must be declared as earnings, and you must pay the correct taxes and National Insurance on it.  If you aren’t earning much, you might not have to pay taxes but you are still responsible for the National Insurance and you still must report your earnings.

Registering with Her Majesty’s Revenue and Customs (HMRC):  Register with the HMRC as a freelance writer so you will receive a tax number to be used when you file your return.  Keep careful records from the beginning, including all of your income and expenses.  Keep all invoices and receipts neatly organized for reference when you file. 

Reporting:  When reporting your income to the HMRC, do not leave anything out.  You must declare any income made from sponsored posts and advertising, the value of items that you keep after reviewing them, and any cash made from selling reviewed items.

Claiming Expenses:  Since your blog writing is essentially a business, you can claim all of your expenses related to it, including:  conference tickets, travel, hotels and meals if an overnight trip is necessary, a percentage of your utility bills if you use an area in your home as a work space, and a percentage of your phone and internet bills.  Keep all of your receipts and organize them by category in case you need to locate a particular receipt in the future.  There are certain things you cannot claim as expenses when you are a blog writer, such as:  childcare costs, your own wages, clothing, or anything bought for personal use like a personal mobile phone.

Think of something you are passionate about and start writing blogs.  You can build your blog site up and research ways to push it up in the rankings online so you can accumulate devoted followers.  Before you know it, you may be able to quit your day job and start working from home as a professional blogger.  Just be sure to treat it as a real business and do your due diligence in reporting your income and paying the appropriate taxes.

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Kevin T

blogging and taxes