Working as a blogger is becoming more and more popular in the UK. There is an unlimited amount of money to be earned as a blogger – depending on how successful you are. Unfortunately, we don’t have the answers to help you become a successful blogger, just hard work and determination.
But fortunately, we do have the answers for how to register as self-employed and everything that you need to know to make sure that you’re telling the taxman the right thing. If you have decided to create a career as a blogger then read this article for everything you need to know.
The first thing you must do is register as self-employed with HMRC. This can be done really quickly via their website or over the phone – whichever medium you prefer. However, we will say that doing it online is far quicker. After you have registered you will receive a letter confirming your status as self-employed.
We do recommend registering as soon as possible – within three months of beginning.
As soon as you start working as a blogger you need to start keeping a record of everything you earn and all of your expenses. How you do this is up to you, some people prefer hand writing it, some people prefer excel spreadsheets. There is no right way to it – whatever works for you.
Keep all invoices that you produce and all receipts for expenses. These will be needed as proof of earnings should HMRC request it. Make sure that you back up all digital invoices and keep all paper copies in a safe place.
When you work as a blogger, your expenses won’t be a huge amount, but there may be certain things you can claim on. If you work from home things like heating can be classed as an expense. Having equipment such as a laptop, computer or printer can also be classed as an expense. It can get quite confusing as to how HMRC works this out, but they are always happy to help out if you give them a ring to clarify anything.
It’s important to use your expenses correctly as you only pay tax on your profits. So anything you make minus your outgoings are considered profit. If you don’t do it properly you could end up paying more tax than you should be.
Everyone who is registered as self-employed will need to fill in a self-assessment form once a year. This is whether you have made a profit or not so even if you’ve just started as a blogger you will need to do this form. HMRC will send you a reminder and again you can do it online, via the phone or through the post.
This is where keeping a record of your outgoings and earnings will come in handy – it will make filling out this form much quicker. If you are employed elsewhere and only blog part time then you will need to include your earnings from your other jobs.
Paying tax and national insurance
Once you have completed your self-assessment form you will receive a figure for your tax and national insurance contributions. Income tax is paid on all annual earnings over £10,600. Again, HMRC has more information on their website. If you earn over £5,965 then you will be required to pay towards national insurance. There are different rates for how much you earn so be sure to check all of that out on the HMRC website.
Blogging is a great way to earn some extra cash and start a career doing something you love but make sure you are doing everything correctly by following the steps outlined above.