Minecraft Taxes, Income over £10,000. Advice Needed!

[MC-Servers Ltd]

Hello guys,

So I just made this post as I wanted some advice from you guys, I've asked a few people around and none of them have really given me a proper answer so hopefully I can get that here.

I live in the UK, and in terms of taxes. The first 10k you get is tax free, none of it is taxed. However anything above that is taxed at 20%. Anything above 40k is taxed 40%.

So, I just wanted to ask, if I've reached an income through Minecraft of over 10k. Do I have to pay taxes?

I don't want to get a bill from HMRC for tax evading, so some advice regarding this would be highly appreciated.

 

[Hunting_Potato]

If the minecraft server is a source of income then it should be taxed. I'm not sure how strict the UK are on it and how far they will look into it though. If they investigate into you there is no hiding it though as PayPal transactions get logged.

 

[Tabbin]

Yeah, in the uk you have to pay taxes if you profit over 12k, so if you are putting the money back into the server, then that's fine, since it's not profit. No matter what age, you have to pay tax I believe.


some of this may be wrong, this is what my dad told me when I came across this issue also

 

[Ivain]

If your income is more than 10K per year, then the remainder should get taxed, yes. It may be best to contact your local tax agency and ask them what to do about it, since you have no experience in such matters. They're very likely to help you out, since it would cost them far less resources than having to go after you for tax evasion because you didnt know what to do.[DOUBLEPOST=1503575440][/DOUBLEPOST]as already said, INCOME means the money you have LEFT OVER after costs. Aka if you get 10K per year but spend 8K on costs for that source of income, then you have an income of 2K per year.

 

[Kuzni]

Just move country

"Just"

Right bye mum, I'm moving country without any money or a job, I need to tax evade on Minecraft.

 

[Ivain]

Just move country

To where? all countries with half-decent living standards have some form of income tax. Honestly, 10K tax-free income is already pretty respectable.

 

[iShartBusiness]

Sorry about this being unrelated but I'm a little curious abou this but I live in the USA & am 14 so if I did make a lot on mc what would happen?

Sorry for tag but
You guys seemed to know this Ivain
Tabbin

 

[Ivain]

Sorry about this being unrelated but I'm a little curious abou this but I live in the USA & am 14 so if I did make a lot on mc what would happen?

Sorry for tag but
You guys seemed to know this Ivain
Tabbin

I don't know the rates for the US, but most western countries have a thing where a certain basic income is not taxed. This is because its seen as a bare minimum needed to afford life. usually the amount is less than what you'll need in practice.
See if you can google it for the US. 'Tax-free income' might be a good term.
most countries also operate with "tax circles" or something like it, which means instead of taxing your entire income on the rate of what you make, the income 'fills out' the tax circle and moves on to the next.
for instance, if you make 50K, and there's 2 tax circles (8k 0%,(up to) 20K 20%, 40K 30%, 60K 35%), you'll pay nothing over the first 8K, 20% over the next 12K, 30% over the next 20K and 35% over the last 10K.

I can't be bothered to math out how much you would have left, but you get the idea.

 

[iShartBusiness]

I don't know the rates for the US, but most western countries have a thing where a certain basic income is not taxed. This is because its seen as a bare minimum needed to afford life. usually the amount is less than what you'll need in practice.
See if you can google it for the US. 'Tax-free income' might be a good term.
most countries also operate with "tax circles" or something like it, which means instead of taxing your entire income on the rate of what you make, the income 'fills out' the tax circle and moves on to the next.
for instance, if you make 50K, and there's 2 tax circles (8k 0%,(up to) 20K 20%, 40K 30%, 60K 35%), you'll pay nothing over the first 8K, 20% over the next 12K, 30% over the next 20K and 35% over the last 10K.

I can't be bothered to math out how much you would have left, but you get the idea.

Yea thanks so much just really curious