Income Tax

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tony-smith
Posts: 175
Joined: Wed Nov 23, 2016 11:01 pm

Income Tax

Post by tony-smith » Thu Feb 23, 2017 5:37 pm

This is a question mainly aimed at UK members, as I don't know the different laws for individual countries. But how do we stand on income tax if we are not Pro members and not here to make a living from CAS? If we are just here to share our enjoyment of a hobby & to view others work? Not that I'm getting too concerned just yet, as I doubt the tax office will be chasing me for the $2 I've so far amassed.

I'm guessing that it's down to the individual to declare earnings to HMRC? I'm PAYE so not self assessed.

tomoswald
Posts: 4722
Joined: Mon Jun 06, 2016 7:13 pm

Re: Income Tax

Post by tomoswald » Thu Feb 23, 2017 5:47 pm

Regardless of what you are here for payments from us to
You are an income and therefore should be declared to the tax man

tony-smith
Posts: 175
Joined: Wed Nov 23, 2016 11:01 pm

Re: Income Tax

Post by tony-smith » Thu Feb 23, 2017 6:57 pm

Thought so. So my current $2.09 in Sterling = £1.67 take off 20% income tax = £1.34 after 3 months ha ha :lol: Good job I'm here for the fun of it :D

petermillar
Posts: 249
Joined: Sat Jun 11, 2016 8:43 am

Re: Income Tax

Post by petermillar » Sat Feb 25, 2017 7:14 pm

No, I don't think many of us will need to trouble the taxman. If it is a "hobby" you don't have to declare any income you get. This is mainly because for most people the expenses (diesel, cards, internet use %, software, printing, computer & cameras, lens depreciation, etc. etc.) would be much more than the "income", and they do not want people trying to claim losses. When does a hobby become declarable? Well, that is an interesting question, because I think the answer is just "when it suits the taxman". Bear in mind how they have cracked down on people doing arts and crafts and trying to claim tax credits, only to be told what they were doing was a "hobby" ... unless the Xmas fair went well, in which case it suddenly becomes taxable. However, unless you are getting in a grand or two I would not even think about it. If worried, just make a note of everything that it is costing you.
Last edited by petermillar on Sat Mar 18, 2017 5:08 pm, edited 1 time in total.

thek00kykiwi
Posts: 8
Joined: Fri Feb 17, 2017 6:30 am

Re: Income Tax

Post by thek00kykiwi » Sat Mar 18, 2017 5:28 am

I am an accountant.. practicing in New Zealand. In New Zealand.... If your photography is a hobby then the income is not taxable and not required to be declared. Similarly, the expenses you incur as part of your hobby are not claimable expenses for tax purposes. The distinction between hobby activity and taxable activity is determined with reference to a number of circumstances & evidence..which can be a bit of a grey area and subject to personal interpretation. If you have any concerns about your income.. pls call a tax agent and get a professional opinion.

TheAspenStand
Posts: 155
Joined: Wed Aug 03, 2016 11:41 am

Re: Income Tax

Post by TheAspenStand » Sat Mar 18, 2017 2:57 pm

thek00kykiwi wrote:I am an accountant.. practicing in New Zealand. In New Zealand.... If your photography is a hobby then the income is not taxable and not required to be declared. Similarly, the expenses you incur as part of your hobby are not claimable expenses for tax purposes. The distinction between hobby activity and taxable activity is determined with reference to a number of circumstances & evidence..which can be a bit of a gray area and subject to personal interpretation. If you have any concerns about your income. pls call a tax agent and get a professional opinion.
You are so right. Here in the U.S. it's similar and sometimes a bit of a nightmare.

mattmalloy
Posts: 1
Joined: Sat May 06, 2017 11:00 am

Re: Income Tax

Post by mattmalloy » Sat May 06, 2017 11:08 am

I'm an accountant in the UK. If you are putting up images to make money then you are 'carrying out a trade' and the earnings would need to be reported on a self assessment tax return. Of course you could include equipment costs against the income that were required to produce the images, separating out personal and business use of the equipment, but by doing so you are recognising that this is a business and still need to report it.

However and fortunately, from 1st April 2017 there is a new allowance for micro-traders and hobbyists. You can make £1,000 per year before having to report the income now.

travel
Posts: 230
Joined: Sat Dec 10, 2016 11:11 am

Re: Income Tax

Post by travel » Sat May 06, 2017 11:46 am

mattmalloy wrote:You can make £1,000 per year before having to report the income now.
So most people on here will have nothing to worry about.

:mrgreen:

Michel
Travel Photography on ClickASnap
Image

123Barso123
Posts: 145
Joined: Tue Dec 06, 2016 10:22 pm

Re: Income Tax

Post by 123Barso123 » Sat May 06, 2017 1:19 pm

More like everyone apart from the owner....... :lol:

petermillar
Posts: 249
Joined: Sat Jun 11, 2016 8:43 am

Re: Income Tax

Post by petermillar » Sat May 06, 2017 6:36 pm

mattmalloy wrote:You can make £1,000 per year before having to report the income now.
Is that "income" or "profit"?

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