UK Tax and Affiliate Marketing

Alternatively, you might decide to buy some accountacy or book-keeping software to keep it all for you/

Check out the VAT rules at

Keep Accounts

Right from the start you will need to keep accounts, accounts of your costs and accounts of your income. Once you’re earning more than half the current threshold it’s a good time to start checking out how VAT works and when you should register.

Every affiliate’s business will be run differently, so it’s a good idea to investigate your particular costs, overheads and expenses allowable as soon as you can.

Allowable Expenses for Affiliates

Allowable expenses for your affiliate business will vary, depending on individual circumstances, but as a rough overview, you might be able to offset the following items against your income:

If you buy any domain names, or any software for your affiliate business, then these are expenses which you can offset. If you purchase any ebooks, or pay for subscriptions to any relevant membership sites, then these are expenses which you can offset.If you travel to attend affiliate marketing events, the cost of your travel (and perhaps hotel) can be offset.Using your home as an office can add an amount to your allowable expenses too.

There is no definitive list of what is and isn’t allowable as an expense – it will change from person to person because it’s based on the cost, the reason and other relevant factors. You will be able to offset some of your earnings against your expenses, it’s best to get advice from the tax office or an accountant as to what is reasonable because some of the amounts you can claim are not set in stone. Once youre turning over more than about 82,000 (at the time of writing) in a 12 month period, youll have to register for VAT. When it comes to the end of the tax year (5th April) you will need to fill out a Self-employed Tax Assessment form and submit it to the Tax Office, along with a cheque for tax on the profit on your affiliate earnings.. It’s something you should really spend some time researching, or make an appointment with your local tax office or an accountant.

Keeping accounts doesn’t have to be complex, you could literally keep a book, or a spreadsheet, listing everything you spend for your affiliate business and everything you earn. One of the variables is if you have a broadband connection then how much of the cost of that can be offset will depend on your personal circumstances, business model and costs.


If you are successful as an affiliate marketer, then you need to check out your VAT position

Posted by admin on November 18th, 2015 :: Filed under Uncategorized
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