Hi, I've started a YouTube account and it's getting insane amount of views.
I have now partnered my channel and will be monetizing my videos very soon.
My channel will be earning approximately £300,000 - £450,000 per year so I wanted to make sure all of my tax info is correct before I start earning money.
I'm only 18, so I would like to ask some help on here with filing for self employment and paying tax:
Question 1) If I am earning that amount of money, will I need to register for VAT on my earnings? Bare in mind that I won't be claiming any expenses because I don't use any, all my videos are made on my computer in my room.
Question 2) I read that I need to enter "The nature of your business". What do I write there? Would putting "Video Production (YouTube)" be sufficient?
Question 3) When does the start date of my self employment begin? The day my first payment enters my bank account?
Question 4) Is it possible to get my YouTube network to pay tax for me?
Question 5) Despite that I work from my room at home, will I need to register as a business and have a business name or anything? Do I enter my business address as my house address?
Question 6) Do I need to keep any records of anything besides bank statements of each payment?
Question 7) How do I prove when I started getting paid for YouTube? Are my bank statements sufficient proof?
Question 8) Am I classed as 'Sole Trader' when filing my tax form?
Question 9) What information do the HMRC need to know about my YouTube channel? Will they need to view the channel / be given a link to it? Will they need any additional information from my YouTube network?
Question 10) Since I'm 18 and will be earning a huge amount of money, will that cause me to be investigated by them? I wouldn't mind that happening, but I have really bad anxiety and I'm not really comfortable with being around strangers, so I'd prefer that to not happen.
Question 11) Would it be easier for me to hire an account to do all of this? Or is it simple enough to do myself?
I've asked similar questions about this before, but I just want to get everything 100% sorted as I don't want to incorrectly do anything and this whole thing intimidates me, haha.
Feel free to give me any additional tips and advice in advance. Please and thank you!
I would get an accountant because they can help you save where you didnt realise you could plus their cost is considered a business expense too, it will save you a lot of headaches.
I will try and answer some of these, I am not a tax advisor however so dont take my post as legal advice.
Question 1) If I am earning that amount of money, will I need to register for VAT on my earnings? Bare in mind that I won't be claiming any expenses because I don't use any, all my videos are made on my computer in my room.
AFAIK if you are not selling anything then you wont need to register for VAT.
Question 2) I read that I need to enter "The nature of your business". What do I write there? Would putting "Video Production (YouTube)" be sufficient?
Yes Video Production on its own is sufficient.
Question 3) When does the start date of my self employment begin? The day my first payment enters my bank account?
As soon as the money hits your PayPal or bank.
Question 4) Is it possible to get my YouTube network to pay tax for me?
No, only you are liable for your own taxes.
Question 5) Despite that I work from my room at home, will I need to register as a business and have a business name or anything? Do I enter my business address as my house address?
No, you might be asked for the name you do business under but that could be your full name if you dont have a proper business name.
Question 6) Do I need to keep any records of anything besides bank statements of each payment?
The records you are meant to keep are business incomings and business outgoings, lists of expenses and copies of receipts. You can keep paper or digital records both are allowed. If you dont have a receipt for a purchase you can write and date it on paper.
Question 7) How do I prove when I started getting paid for YouTube? Are my bank statements sufficient proof?
You wont need to prove when you started AFAIK.
Question 8) Am I classed as 'Sole Trader' when filing my tax form?
Yes. Sole Trader or Self Employed.
Question 9) What information do the HMRC need to know about my YouTube channel? Will they need to view the channel / be given a link to it? Will they need any additional information from my YouTube network?
No to all.
Question 10) Since I'm 18 and will be earning a huge amount of money, will that cause me to be investigated by them? I wouldn't mind that happening, but I have really bad anxiety and I'm not really comfortable with being around strangers, so I'd prefer that to not happen.
Unlikely but you never know, I have read somewhere fluctuations in earnings can cause them to become interested. It doesnt matter as long as you have your records etc
Question 11) Would it be easier for me to hire an account to do all of this? Or is it simple enough to do myself?
It is best to get one but you can do it yourself if you are able to dedicate time to reading into the subject a whole lot more.
