Earning income online within UK and whilst travelling

[andrewpeacock]

Hi all,
I'm looking for some general guidance on a couple of things:

First, I've got a steady 9-5, employed job, but I also earn some income through a few websites that I maintain. The income all comes from the US. The income is only £300 per month and rising, so it's not huge, but enough to start getting interesting. But my expenses have been significantly higher at start up, so I won't break even till later in the year.

If I declare this income, can I offset my expenses against it and reduce my income tax?

Second question: if all goes according to plan, I intend to use this as my only source of income at the end of next year, and hit the road travelling the word, but still earning income through the sites, probably still paid into the UK. I won't be resident in any other country, as I'll only stay in one country for at most 6 months.

Can you recommend any online or paper resources that deal with this sort of situation? Or do you have any advice/suggestions/warnings?

Thanks,
Andy

[demetris]

Dear Andy,
although you say you will not be spending more than 183 days anywhere, I can only speak about the UK law that will treat you as a UK resident if you spend 3 months on average over a 4 year period in the UK.

As regards your liability to UK income tax as a UK resident person, it makes you liable for all income generated worlwide.

About your liability with regard to past income, yes, you can get relief for allowable business expenses against your income. But, if you haven't registered yet as a self employed person, bear in mind that there are fines for late registration.

I hope this helps.

Demetris Savva BA FCCA
http://www.tax-accounting-london.info
constantinesavva@accamail.com
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[andrewpeacock]

Demetris,

Many thanks - that's a great help. The only thing that worries me now is the double-taxation stuff (I forget the legal term), but I'll look into that when I know where I want to travel to.

All the best,
Andy

[demetris]

If I was you, I would be more concerned about setting up the business properly from a tax point of view by carrying out some tax planning as it might be too late after you traded long enough to reverse earlier decisions.

Demetris Savva BA FCCA