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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5112
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am runnig an online social network and we arrange eevents

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Hi I am runnig an online social network and we arrange eevents to meet etc. I want to start to charge a subcription to offest the runnign costs and expenses .. but not profitt making in that sense .. the income would be around £ 1,500 a year. What is the easiest way of setting this up re tax issues
Hello and welcome to the site. Thank you for your question.

Please clarify -
Is it your intention to carry this activity beyond that of a hobby albeit it is your intention not to make a profit?

Many thanks
Customer: replied 3 years ago.

I do want to retain control of it but it never will be a huge concern but yes I gues in futre it may grow into a little venture

Customer: replied 3 years ago.

I just dont want to be burdened by too many legal requirements etc .it costing me just over £2000 a year to run the site and software and support costs.. and i will get aroudn 1,500 pounds a year income if i start invting people to pay a voluntary membership to help towards teh costs

Steve, thank you for your prompt response.

Based on your thought process my recommendation to you is to register for self assessment as self employed.

You may not make a profit in the near future. It is your intention to retain control and therefore having registered as sole trader you would have the facility/ability to carry forward losses in the short term and offset them against future profits.

You are unlikely to be burdened with hugh legal and or finance costs if you keep the operation simple and straight forward.

You can register for self assessment online and the link to it is here

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.

If I am employed by a LTD company that I have shares in and paying PAYE would i stil be able to be self employed sole trader for this purpose keeping the two things seperate ? I was hoping to keep this hobby seperate

Steve, if these are two unrelated businesses and that you are not using your LTD company to run this activity, then there is no reason why you can't be both an employees of a LTD company and also running this business as self employed sole trader.

You can keep the two separate.

You say you are hoping to keep this hobby separate.. my question is when is a hobby no more a hooby and is a business. You may wish to read the article here

I hope this is helpful. and other Tax Specialists are ready to help you