UK tax question

[Number36]

Hi all,

Can any UK affililiates give me any pointers on taxation policy? My accountant is telling me he thinks both VAT and corporation tax apply, which is not what I'd heard - but he's getting slightly conflicting advice from the Revenue. He's also not sure whether the new gaming duty might apply (lol, great accountant I know).

He's advised me to write in for a written ruling which takes a month to come back.

Can anyone who's been in business for a while let me know what they pay?

Thanks!

[PokerMaster]

As an affiliate I pay self employed tax, (income tax) Thats it, although I guess it depends how big you are, but at the moment thats what my accountant recomends.
I do not pay VAT and corporation tax, and I do not have a registered business as I have no employees so there is no need.
Wouldn't the new gaming duty only apply to operators?

[Number36]

Thanks for your reply. My accountant is not an expert on the new gaming duty regs but thought that I may be classed as an 'adminstrator' rather than an operator.

Anyway, the revenue said they thought not but weren't sure (hence they recommended writing in). They thought if I became a ltd. company both VAT and corp. tax applied (17.5 and 22% respectively) so maybe my best bet is to stay self-employed and just file it as income.

Any other UK affiliates that are ltd. companies rather than self-employed clarify this for me?

[Zilla]

I'm an accountant by profession and based in the UK, but I am certainly not a tax expert so please take proper advice from a tax expert - which it seems you are already doing.

I don't see how there is any difference between being a incorporated legal entity and being self employed in regards to VAT - if VAT was applicable it would be applicable to both the Ltd company and the sole trader.

I don't however see how VAT would be applicable on affiliate earnings.

Corporation tax for a company setup or income tax for a sole trader setup certainly would be due as with any other income source.

Gaming duty I'm 99.9% certain wouldn't be applicable to affiliates as you are not directly dealing with the transaction with the customer.

If you want a cheap way of finding an answer to your question then you can submit a tax question to a tax expert via the link below for about £90 and I have used the service before and can recommend the service.

http://www.taxcafe.co.uk/questions.html

[Number36]

OK thanks for that.

To be honest the advice I was hoping to hear was that VAT would not apply if I was a ltd. company and corporation tax was all I would pay. So a little surprised my accountant told me different (although this was just because the Revenue / Customs and Excise had advised that they thought VAT 'probably' should be paid).

I'll give the link a go, thanks.

[Nick0r]

The VAT mention is very interesting. As an affiliate, I also do not believe you should be paying VAT in the UK on your affiliate earnings.