I am a freelancer and have started working as a partner in a site that sells digital subscriptions for a game, so they purchase digital content in the form of forum access and get certain rewards after that.
The website is a registered business in the US and the owner (i am not a listed owner) pays tax to the IRS, until recently all income we received on a weekly basis would be split 50/50 and the owner would pay tax on his income (50%) and i would receive the other 50% as a paypal payment, he would then declare that 50% i receive to be exempt from paying tax on the 50% of the business income.
I am in the UK and have a full time job too which i pay tax from the PAYE scheme, however the business has recently changed and we are no longer using merchants that he setup and are now using my paypal to handle all the subscriptions and in return i send him 50% in which he declares 100% of on his end (IRS).
Two fold question:
1: There is about $500 a week coming into the paypal account which fluctuates or which $250 of it is sent straight back out. How do i even go about starting to declare this, it seems that i cannot find anything online about this type of business and income.
2: Will this impact my normal day-day job at all in terms of my tax code and the PAYE scheme.
Do you recommend anywhere i can get face to face or telephone advice that is not monitored or logged as i really don't know what im doing currently so want to get advice first before i decide to continue with the online earning or cancel it without being scrutinized from the outset.