I am not sure what the laws are in other countries but in the UK, if you are self employed, you have to fill out a tax return by the 31st January and pay your dues on this dreaded dead line!
As per usual I have still got this joyful task to complete. I have been self-employed since 2010 (with a brief stint in 2005/6) and have 3 sources of income on my self assessment. Next year I will have 5 as Steemit and aubreyfoxbooks will be on there (YEY!)
I am not an accountant or financial adviser so please do your research on what I am about to say.
If you are releasing money from Steemit you will have to fill in a self assessment form. The only exception to this is if your individual (not household) GROSS income falls below £11,500 this is the amount you are allowed to earn before you get taxed on it.
- When you start self-employment you fill in a tax return by the 31st January in the financial year AFTER you start. So, if you started after April the 5th last year, it will not be due until 31st January 2019.
- You can claim for a variety of things and offset them against your tax. Steemit expenses may include laptops, and vlogging equipment, and even a proportion of utility and rent costs. Visit HMRC , this gives more advice.
- You may pay less National Insurance if you are self employed: 9% on profits between £8,164 and £45,000 2% on profits over £45,000 source
- If after your expenses are deducted from your gross income, your net income is less that £11,500 you will not need to pay any tax. (Some people just reinvest the money back into the business, so no income occurs.)
- Tax rates are: £11,501 to £45,000 20% £45,001 to £150,000 40% over £150,000 45% source
I do my self-assessments myself, my hubby has an accountant, it is entirely up to you which choose.
Hope this helps any newbies to the self-employment gang.