Nowadays, blogging can mean so much. The word actually means a web log which is basically a diary entry onto the web. However, since the first ever blog in 1994 by Justin Hall, blogging has gone from being a diary for students, mums, parents, travelers, chefs, showcasing your hobby to becoming a business in itself as well as businesses using blogs for their websites and products and services.
A Business
Blogging can be a bit of a minefield. Some blogs have very useful information about their particular niche. Others have product reviews which can help you decide on whether you want to buy a certain product. You are able to sell things on your blog through advertising, affiliate links, product reviews and your own or others e-products.
Even HMRC are still trying to come to terms with how to deal with income and hours worked when people blog. There has even been a case where this form of income has been contested by HMRC as can be seen here: http://www.bbc.co.uk/news/technology-37275604 .
A Hobby
At what point do you decide that your blog is a business and not just a hobby? If you blog without the intention of making money and you only receive very little if any money or freebies, then you are ok keeping it as a hobby. You should keep track of all the money you receive and any costs relating to your blog to ensure your profit is below £2500 at which point you would need to declare your income to HMRC.
From this year (tax year 2017/18), there is also a £1000 trading allowance. Therefore, if your income only is below £1000, then you don’t need to register with HMRC. If your income is above £1000, then you can choose to claim either £1000 in total as expenses or claim your actual expenses. You have to choose one or the other, you can’t do both.
Anyway, with this is mind, I have created a four part series on accounting for bloggers. Follow this link to get more information on this. Or to get a start on it, go here.
Your blogging niche
While still on the subject of blogging, I found this amazing infograph from the Fairly Blogmother on how to make your blog more reader focussed:
If you are wondering where to start and how to turn your blog into a business, there is the perfect quiz here:
