Need advice about Tax

Discussion in 'Website Development & Design' started by simplyjo, Oct 19, 2009.

  1. simplyjo

    simplyjo
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    How does tax work for paypal payments ? Need advice from those who are making full time income online.
     
  2. Fergal

    Fergal
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    The tax is handled in the same way as other income you receive. It is your obligation to report the income to the relevant authorities and they will tax you accordingly.

    Does that answer your question or am I misunderstanding something?

    [Moving thread to Online Business forum!]
     
  3. simplyjo

    simplyjo
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    Hi Fergal,

    I do understand that. Do I need to register as sole proprietor so I can show business expenses like - electricity, internet / phone bills etc ?


     
  4. Fergal

    Fergal
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    It's difficult to answer that to be honest Jo. It really will depend on the local laws and regulations relevant to the country you live in. Do you know any accountant that you could ask? A good accountant will often cover their fees with the amount they can save you on tax. Plus getting an accountant sooner rather than later can be very helpful as they can set you on the right track when your business is small and growing. This can save you a lot of stress, time and expense when your business is larger.

    Personally I wouldn't see any reasons why you couldn't write off "expenses like - electricity, internet / phone bills etc" against your tax, provided that you can show that they are legitimate expenses associated with your business.

    Good luck with everything and please do keep us posted.
     

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