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Geek Culture / $$$$ in the Net

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Sagan
22
Years of Service
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Joined: 2nd Oct 2002
Location:
Posted: 25th Jul 2003 05:16
If you have a web site that have paid banners, or people have to pay to access to parts of it, or to play a amateur game on-line,…
What is the best and easy way to receive the money, Credit card or PayPal, or other System?
Is necessary to declare this money to the finances?
Is necessary to pay the VAT or any taxes?
Is necessary to have a company?
MikeS
Retired Moderator
21
Years of Service
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Joined: 2nd Dec 2002
Location: United States
Posted: 25th Jul 2003 05:18
I say paypal is easiest to recieve money.

Quote: "Is necessary to have a company?"


I don't think so.



Yellow:Wanna publish my game microsoft, cuz i no u rich so...Can I have my bag of money now?
Microsoft: *snicker* Tip of the month-Microsoft will never(probebly) publish your game.
Andy Igoe
22
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Joined: 6th Oct 2002
Location: United Kingdom
Posted: 25th Jul 2003 05:46
The regulations regarding online services have recently had a shake up in Europe and I muss confess to not fully understanding them, the best I can do is suggest you contact the EU goverment (prefferably with a petrol bomb) and ask.

As I understand it, as a resident of the UK, I now have to pay 17.5% taxation on online services.

This effects me as a user not as a web host so it is something that ALL web hosts have to adhere too.

I'm not fully up to speed on the matter though, so I suggest you try to find further information. Paying the tax from the point of view of an MMORG host would necessitate having a company.

Decleration of income is dependant upon the country you live in, in the UK I know this would be considered a second income, taxable as a second income, flag you as self-employed thus compromising any opportunity to claim benefits at a later date, and must be declared to the Inland Revenue.

HOWEVER... If you are doing it as an amateur you can found a non-profit making organisation which receives the income. As a non-profit organisation you are entitled to keep all of the income without tax, but you must show the expenses going out. You are allowed to maintain a 'reasonable' float, and nobody has ever worked out what reasonable is.

If you charge credit cards you will need a credit card service provider such as World Pay. From the customers point of view Paypal is prefferable to those people who already use Paypal, otherwise services such as World Pay are more prefferable as Paypal requires something like 90 days to register.

Personally I preffer World Pay because their offices are 20 minutes drive away from me, which makes any complaint I may have that much more easier to 'impose'.

Pneumatic Dryll
Ian T
22
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Joined: 12th Sep 2002
Location: Around
Posted: 25th Jul 2003 06:05
'As I understand it, as a resident of the UK, I now have to pay 17.5% taxation on online services.'

Man, over there the rich just get richer and the poor just get poorer... I can't believe people put up with those ridiculous taxes over there.

Here in New Hampshire, we're mostly tax free, the city still takes care of pretty much everything fine...

--Mouse

Famous Fighting Furball
Andy Igoe
22
Years of Service
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Joined: 6th Oct 2002
Location: United Kingdom
Posted: 25th Jul 2003 06:15
Brussells was fine when it only did things like built itself multi-billion pound buildings to hold meating in - now that they have started interfering however the European Union is proving to be a bad idea. Maybe they need to pay the heating bill or something.

Pneumatic Dryll
Richard Davey
Retired Moderator
22
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Joined: 30th Apr 2002
Location: On the Jupiter Probe
Posted: 25th Jul 2003 11:28
The following only applies if you're in the UK:

"Is necessary to declare this money to the finances?"

Not unless it's over your extra allowance threshold. This will vary depending on your NI code I believe. Mine is around £2700 a year, so I can earn that much "extra" without being taxed on it (and thus without having to declare it).

"Is necessary to pay the VAT or any taxes?"

Not unless you're a VAT Registered company. Otherwise it's actually illegal to charge VAT. Equally you can only charge it to UK or EU members. Unless you're going to have a turn-over in excess of £10,000 a year, VAT Registration isn't worth the cost.

"Is necessary to have a company?"

No. Unless you want VAT Registration

Cheers,

Rich

"Gentlemen, we are about to short-circuit the Universe!"
New DBS Web Sites Coming Soon - All Change
Martyn Pittuck
22
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Joined: 27th Aug 2002
Location: United Kingdom
Posted: 25th Jul 2003 13:19
Quote: "Unless you're going to have a turn-over in excess of £10,000 a year, VAT Registration isn't worth the cost.
"


I thought it was £52000, but that may be net.

The Tax thing is only on interest. If you are making money as a company then the company pays the taxs, but that is the VAT i think. What i do know is that unless you earn over 4200 and somming a year you may have to pay tax. But just ring the Revenue up if you are in the UK.

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Teep
21
Years of Service
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Joined: 30th Nov 2002
Location:
Posted: 25th Jul 2003 14:01
if you want to make money with advertising and u are from uk or scandinavia ( i dont quite remember all the countries ) you can check http://www.tradedoubler.com

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