9

I'm living in the UK and doing some after hours experiments with Android OS. Some of my apps started getting money. I still haven't entered my bank details in Merchant account, so every time after login I see a warning that earnings are postponed because of this. My question is should I and how do I pay taxes on these earnings which are around £100-500 per month. I do have full-time job so my company does all the tax work from my primary earnings. Maybe there is a way to convert these directly to Google Checkout or Paypal so I could spend them on Amazon?

  • I highly recommend setting up your self-employed status (and get UTR from HMRC). This could seem complicated but it's not! You are making a decent amount of money and who knows that with a little effort this could be your primary source of income! You could also create a separate business banking account (though it's not required)---HSBC has a free business banking for 18 months. – Jaywalker Jan 6 '12 at 10:21
7

Legally you are obliged to pay income tax and possibly self-employed National Insurance contributions on these earnings - see this page for details of how HMRC will handle this. You should write to HMRC after the end of each tax year to inform them of the extra income - you may well end up having to complete a tax return, which is quite straightforward.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.