With many blogs taking off and becoming real money-spinners for their owners, it’s best to register as Self Employed from the start if you are planning to earn any income through your blog, even if you think you will be earning less than the Standard Personal Tax Allowance (currently £10,600). Remember, you will also need to take into account earnings from any other employment.
What earnings should bloggers be declaring to HMRC when it comes to tax?
This includes actual payment you have received for your blog, whether this is a sponsored post, money earned through advertising or income via affiliate links.
If you receive products from a company or PR (e.g. a dress or makeup to review) and you keep them yourself, you generally do not need to declare these. However, if you sell them on afterwards, you would need to declare that revenue on your self-assessment form.
As with any business, you have the right to claim the running costs of your blog as expenses, which will reduce the amount of tax you pay. This can include website running costs, domain registration, plus marketing and equipment costs. You can even claim back a reasonable percentage of your broadband use, based on the number of hours you work on your blog.
Whether you have recently started blogging or have been running one for a while, it’s advisable to register with HMRC as soon as possible so as not to run into any taxation issues later.