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Taxes on online income (esp. for UK forum members)
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alchemist Offline
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Post: #1
Taxes on online income (esp. for UK forum members)
Does anyone know how taxation works on money earned through online means (e.g. through selling Kindle books/ebooks, affiliate marketing, ad clicks or any other means)? I've tried looking online but it seems like a bit of a grey area.

If I was living full-time in the UK and earning all my money online, I'd presume I'd register as self-employed and be taxed as such. However, I was thinking more along the lines of continuing to live in Romania or another foreign country with a lower cost of living.

For any British guys in particular ... if I was a UK citizen but ordinarily resident in Romania (for example) and earning income online, would I be subject to Romanian tax, or would I pay British tax on products sold to people in the UK? Or would there be some other arrangement?
03-01-2012 10:18 AM
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Pilgrim37 Offline
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Post: #2
RE: Taxes on online income (esp. for UK forum members)
I think if you're living outside the country you'll only pay tax in the country you live,unless you spend 90 days or more in the UK per year,then you're subject to UK tax.

But,you should investigate more because if it's all online then the income isn't being earned in any particular country if you're not living there for long enough...maybe you can escape income tax altogether!

Maybe spend 89 days then move and so on back and forth.Don't know about Romania.
(This post was last modified: 03-01-2012 12:19 PM by Pilgrim37.)
03-01-2012 12:18 PM
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Jalouse Offline
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Post: #3
RE: Taxes on online income (esp. for UK forum members)
To make it easier I would suggest registering your business outside of the UK next you want to register yourself as non-resident, you can read all the information about doing that here: http://www.hmrc.gov.uk/cnr/hmrc6.pdf

As to whether you would have to then pay tax in Romania I'm not sure although I wouldn't personally go out of my way to contact the Romanian tax authorities about this.
03-01-2012 02:19 PM
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Kitsune Offline
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Post: #4
RE: Taxes on online income (esp. for UK forum members)
I'm in a similar position myself, you really have to go to an accountant/tax specialist.

You could probably use a service like myuscompany.com to set up a limited company in a state with no income tax. You'd then only have to pay taxes on the income/salary you paid into a UK bank account.

It all really depends on where you incorporate and where you pay your salary to. You'll really need to speak to an accountant though. Loopholes are there but you don't want to go wrong.

And I've no idea about Romania, unfortunately.
03-01-2012 03:57 PM
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