According to Mediakix.com there are more than 440 million blogs in the world. But are all these blogs registered as a business? And how did they know when it was time to get registered and get formal? Blogging can be a tricky area to define when it comes to business.
The first essential step when deciding if you need to register your blog as a business is to figure out if your blog is a hobby or a business.
Hobby or Business?
Many bloggers out there simply enjoy doing it as a hobby. It’s a bit like how someone else may play golf or go cycling. In these cases there is no need to register your blog as a business.
If you are struggling to identify whether your blog is a hobby or a business, then here are some questions you can ask yourself to decide:
What is Your Motivation Behind Your Blog?
Are you hoping to turn your blog into a full time job one day gearing up for your blog to generate income?
Do You Have Ad Space?
Even if you haven’t sold any space, are you intending to sell ad space or have you already implemented something like Adsense, for example?
Have you accepted Products in return for your writing?
You may not have accepted any cash but have/would you accept products in return for writing a blog on your site?
Do you do Guest Blogging to raise awareness?
Are you guest blogging on other sites to raise your profile, increase traffic and promote your brand?
Do You have a Monetisation Strategy?
Blogs take time to create, manage and develop so naturally you need to expect to be paid for this. Have you got a strategy in place for monetising?
If you answered yes to any of these, then it is likely that you need to register your blog. However if you remain unsure then you should seek professional advice.
What Does It Mean to Register a Blog as a Business
Registering a blog as a business essentially means letting HMRC know.
HMRC need to monitor what everyone is earning which they do by payroll or, by asking people to fill out a self assessment tax return form.
A self assessment tax return form summarises all the income that you earn which is untaxed and tells HMRC how much tax you should pay on it. This is what is known as Being Self Employed.
How to Register Your Blog as a UK Business
Registering your blog as a business is a straightforward process which you can do yourself.
Find out how to do this as well as learning about your tax and reporting responsibilities in my comprehensive blog ‘Tax Advice for Bloggers‘. This comes with a FREE bookkeeping spreadsheet to help you stay on top of your business record keeping.