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Tax n stuff

Any pointers? :)

     
4:38 pm on Apr 15, 2003 (gmt 0)

Senior Member from GB 

WebmasterWorld Senior Member 10+ Year Member

joined:Jan 16, 2003
posts:1956
votes: 10


Hi all

For my time as a web designer I have only run my own non-profit sites and my employers business sites.

Im thinking about venturing into the world of personal e-commerce (I have only vague ideas in my head, but that's the way it usually begins! ;)).

The one area in not sure about and don't have any experience in is tax and business formation, etc.

I realise it differs from region to region, so FYI im based in Europe at the moment (spain).

I have a few questions and i was hoping some people could chip in a bit of info! ;)

> Affiliate programmes - im familiar with them because ive messed around a bit, but never took it seriously and didnt make anything. Im looking to put some effort into generating a minor cash flow from affiliate programmes.

BTW, I do have a reasonable idea of how difficult it is to make money from this! :)

Does anyone have an idea of any tax concerns from generating a supplement income from affiliate advertising, particularly in terms of doing it part time whilst working full time? Or do people just not tell anyone about it! ;)

> B2B - Would I have to operate as a registered business in order to deal with other businesses? Im thinking in terms of charging for services (advertising, etc) that I would have to provide them an invoice / reciept for tax puroses.

Would this require that I was a registered business or could I supply this as an individual?

I assume it's possible to make use of an online payment system (WorldPay / PayPal / etc) to receive payments as an individual?

Basically, ive gotten to the point I want to work on my own, but cant really afford to do so, so I need to work full time as well as trying to establish a revenue flow from my websites. I just don't want to turn round in a year to be hit with a mamoth tax bill / fine because i didnt declare something! :)

I assume (yeh, i make a lotta assumptions!) there is a limit to where you can make money from other sources while working full time.

I'd be interested to hear about the situation in other countries and what other people have gone through at this point in their careers. If anyone has any general advice that would be greatly appreciated too. :)

Cheers
Scott

9:01 pm on Apr 15, 2003 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Apr 26, 2001
posts:762
votes: 0


Hi Scott

**I'm not a lawyer or anything, just take this as my personal opinion** (disclaimer)

Basically, I would keep track of your earnings, keep the documentation, and when the income becomes significant, go spend an hour with a reputable accountant. By that time you should be able to afford a little consulting. He/she will be able to determine the best route for you.

Oh.. another piece of advice.. go get a seperate bank account for your affiliate earnings. Deposit everything directly there. Do not spend any of it until you see an accountant and pay taxes on it.

IMHO..