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Saturday 16 June 2012

Hobby or a business.....

Well.... some people have a "normal" job (whether part time or full time) and have a little play on various adult websites as a "hobby".

Sometimes what you class as a hobby may not be that in the eye's of the lovely people at HMRC.

If you have set up yourself up to provide services (whether camming, phone or in person) and you are in the eyes of HMRC running it like a business, then you have to declare that income and pay the appropriate amount of tax and NI on your profit.

Is there a strict definition of a hobby as far as HMRC is concerned - NO! but this is where common sense prevails.

I would respectively suggest (and HMRC tend to agree) that if you are charging people on a regular basis then it's a business. Therefore HMRC want their share - simples!

If you decide to argue the case with HMRC then consider all aspects - the paying in of your earnings, the feedback from your services. All of this will lean heavily towards running a business therefore you pay tax.

YES this is the case even if you are paying tax on your normal job.

Confused / need help - feel free to get in touch.

Remember that tax evasion is not something HMRC look favourably upon.

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