Started selling a digital template a year ago, mostly passive now, about £400 a month gross through a payment platform. Full time employed otherwise. I have kept every payout email but no real records. I'm now nervous that I've done something wrong and have no idea what the first step is. Is this the kind of thing I can sort out myself?
Worth noting the platform may already be reporting your sales to the tax authority — many do above certain thresholds. That's a reason to file rather than a reason to panic, but it does mean quietly ignoring it isn't a real option.
Also set aside a percentage of every payout into a separate pot from now on. Pick a number that's higher than you think you need — you can always give yourself the surplus back, but scrambling for a tax bill you've already spent is genuinely miserable.
Learned this the hard way in year two when the bill was bigger than year one and my spending had already adjusted upward. Automate the transfer if your bank allows it.
Open a separate bank account for it today. Free ones exist. It costs nothing and it means next year's version of this question doesn't happen, because the account statement is the record.
One accountant, one hour, cheaper than you fear. Say exactly what you said here. They deal with this weekly.
@exdiv_eli · 10mo ago · 3 replies
Yes, this is very fixable and you're not in trouble — a year of small side income with payout records is the easiest possible version of this problem. Rules differ by country so get the specifics from your own tax authority's site or an accountant, but the general shape is the same everywhere:
One evening with the platform CSV in a spreadsheet gets you 90% of the way there. Then one hour with an accountant is worth paying for, because they'll tell you what you can legitimately deduct and you'll likely save more than the fee.
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@exdiv_eli · 10mo ago
That trips almost everyone at first. If the platform takes 8% and you spent £200 on software, your taxable figure is well below what hit your bank.
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@sinking_funds_su · 10mo ago
The gross vs profit distinction is what I've been getting wrong in my head. I've been thinking of the payout as the number that matters.
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