So you’ve started a blog, and you want to monetise it. Maybe you hadn’t intended to make money from it, or maybe you started it as a way to make money. It’s no get rich quick scheme and it takes hard work and dedication to keep it going. Once you have accepted and received money for that very first post, you need to register as self employed. Don’t worry, you do have plenty of time to register, over a year. It’s best to get it sorted as soon as possible though and keep accurate records of incomings and outgoings. Here’s what I do, it may not work for everyone. It really doesn’t have to be complicated.
#1 Register as self employed
Head to the government website to register for a government gateway account so you can then register as self employed and get a unique tax reference (UTR). You’ll need this when you fill in your self assessment. Registering can be a headache, I’ve had several accounts as I’m always losing my password! They ask you to verify your identity which can be tricky if you don’t have the right documents to hand.
#2 Start a spreadsheet for your accounts
A simple excel spreadsheet or even just a table in a word document will do. Have a heading for each month, then list any money in – write a short description like ‘Blog post for Fisher Price,’ so you know what it was for. Also write the date. These will all help you as and when you have to look back over the accounts. Also put any vouchers you receive and any income from affiliate sales or advertising. For your outgoings and expenditure list any travel expenses, any blog expenses. For me, my blog expenses are my Boardbooster account, my buffer account, I pay for an inlinkz account for my linkup (Blog School) so I can have pictures rather than text links only. Some people list electricity and gas, printer related expenses but I don’t bother with that at the moment. Business cards, cameras, travel, even mobile phones can be an expense. If you buy photo props or ingredients they are an expense. If you spend a long time abroad, in another country, you may consider registering with the local authorities.
#3 Keep your receipts
Any train tickets, receipts from goods purchased, keep them in a folder or box somewhere. You may be called upon for an audit one day, and you’ll need to prove your expenses.
#4 Consider hiring an accountant
Once it starts getting too much for you – I’m OK at the moment but next year I’m considering hiring a specialist tax accountant to take away the hassle for me. You’d still need to keep records but the accountant would file your tax assessment for you – Bliss!
#5 Filling in your Self Assessment
Once you’ve registered as self employed, each year you’ll get a letter reminding you to fill in your tax self assessment. When you work for a company, they sort out your tax and it’s recorded on your payslip. Even if you still work for another company, you’ll need to fill in a self assessment for your business. Then they’ll work out how much tax you owe, if you don’t owe anything or if you’re due a rebate. That would be nice! Even if you’re operating at a loss, where your outgoings are more than your incomings, you still need to fill in the self assessment. It’s boring, but it has to be done, otherwise you can get a fine. You can do it online or get a form posted to you.
Hopefully this post has made you realise that tax doesn’t have to be taxing, and that records can be simple.
Disclosure: this is a sponsored post, all opinions are my own
Thank you for reading - if you enjoyed this content, please consider buying me a coffee here or browse my Amazon wishlist I really appreciate your support and it helps to keep the site running and for my time 🙂