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Hi all! I've become fortunate enough to be a Twitch Affiliate, and start making money from streaming games and stuff. I was wondering - does money from Twitch count as job income, even though it's such a small amount? (I'm in the UK if it helps) Looking at sites like this calculator my income is borderline the personal allowance limit, so any more income will put me into the basic tax band. So, does anyone know if money from Twitch counts as income the same as a job or is it something else?
All income has to be declared for tax purposes. The current personal tax allowance is £11,500 on which you pay no tax. Anything above that you pay20% until you reach the next band.
So: as an example if you are currently earning £11,000 pa, you will not be paying any tax. If you then earn £1000 from twitch, your total income will be £12,000 so you will be liable for tax on £500 at 20% ie £100.
If you have any allowable expenses you may be able to offset those against the tax bill, but yo7 are then getting into sole trader territory and you need to start keeping detailed records of your business expenses.
(Disclaimer - I am neither a lawyer nor an accountant - this is only my opinion based on a perusal of the HMRC website)
Unless it is considered to come under the £1,000 micro-entrepreneur's allowance, which from a quick browse it might be, in which case the £11,500 allowance plus the £1,000 allowance would provide £12,500. I think the definition is quite broad.
https://www.gov.uk/government/public...trading-income
yes it's taxable.
So stick it all in a Pension and get the tax back. One day, when this is all dust and ruin, you can buy me a beer with the spare :)
Remember to deduct everything that you reasonably can (keep receipts). Any hardware (inc. things like a chair), any software bought for streaming; also electricity costs etc. - if you work at least 25 hours a month from home you can use simplified expenses for some of it which might be easier - I sell on eBay and use that rather than try and estimate what % of the electricity bill is for business use.
https://www.gov.uk/simpler-income-ta...king-from-home
Pretty much this. Your expenses in running the rig plus possible home office allowance would mean that I would be amazed if you have any tax to pay.Quote:
Originally Posted by Man-In-A-Teapot
However you do need to keep records, and a chat with a public accountant is my recommendation.
(I am an accountant, but Australian one. Hence my advice to seek professional advice from a UK accountant)