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.
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 .
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.
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: