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Thread: Little side income from mobile app dev - how to pay tax on this?

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    Little side income from mobile app dev - how to pay tax on this?

    Hi all.

    I've been dabbling in mobile app development and have been giving myself small projects and releasing them into the wild on Google Play/App Store. Turns out some other people find them useful too, and I've been making a little money out of it. I was wondering how to declare this income on top of my PAYE job? I've had a look through some tools like this tax website (income-tax.co.uk) and know what I will be paying, just not how to!

    Many thanks

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    Super Moderator FunkyDexter's Avatar
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    Re: Little side income from mobile app dev - how to pay tax on this?

    I'm pretty sure you'll need to fill out a self assessment tax return. If you're wholly self employed that's pretty straight forward (it has a section where you declare each income source separately). I'm not sure how it combines if you're already PAYE - I think you'd have to come off PAYE and declare your whole income through self assessment. I've never had to mix the two, though, so I'm not 100% sure - you might be able to just do an SA for the extra income.

    My advice would be to simply phone HMRC and ask. They tend to have quite long wait times on the phone but I've always found them to be pretty helpful once I get through.
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    Re: Little side income from mobile app dev - how to pay tax on this?

    Thanks for the reply!

    I think it might end up like declaring income twice - once through PAYE which is done on the employers side, and again by me for the rest of the money I make. I'll look into giving HMRC a call and update!

    Thanks for the advice

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    Fanatic Member 2kaud's Avatar
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    Re: Little side income from mobile app dev - how to pay tax on this?

    For tax year 2017/2018 you need to download the main tax form sa100 together with supplementary section sa102 (employees) (and any other section as appropriate). See https://www.gov.uk/self-assessment-forms-and-helpsheets. You won't pay tax twice as when you complete the forms you state your gross income, tax paid (p60 from your employer has the required info) and any income from/tax paid from savings, investments, other income etc. You should submit these to HMRC no later than 31 Oct 2018. They will calculate the amount of tax owning and let you know. You can either pay this via PAYG with a lower tax code for 2018/19 or as a lump sum. If you decide to complete the tax return on-line then you need to register (which can be a right *..*), but you have until 31 Jan 2019 to submit the tax return AND pay the owed tax (on0line system will calculate it for you).

    Note that you incurred legitimate allowable expenses in producing the software from which you earned the extra income. These allowable expenses can be offset against income to reduce your tax liability. Read the notes! Also note that if this extra income is less than 1000 (and not from your employer) then you don't need to pay tax on it or declare it as from 1 April 2017 this is exempt. See the notes.
    All advice is offered in good faith only. You are ultimately responsible for the effects of your programs and the integrity of the machines they run on. Anything I post, code snippets, advice, etc is licensed as Public Domain https://creativecommons.org/publicdomain/zero/1.0/

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