Selling on iPhone Store: Business Side, from a UK Perspective

[Pring]

I have a couple of apps in mid-stage of development which I'm hoping to have shippable in mid July. From a coding side of view it's fine but the problem is I don't have any idea about is the business side.

I imagine I have to pay tax on anything sold on the App store. Does that mean I have to register as a Sole Trader or something and then fill out tax returns every year?

I imagine it's probably the same rules as standard shareware so can anyone give any advice?

 

[cjbryce]

I have a couple of apps in mid-stage of development which I'm hoping to have shippable in mid July. From a coding side of view it's fine but the problem is I don't have any idea about is the business side.

I imagine I have to pay tax on anything sold on the App store. Does that mean I have to register as a Sole Trader or something and then fill out tax returns every year?

I imagine it's probably the same rules as standard shareware so can anyone give any advice?

Some good guides to starting out on your own small business can be found here. We're mainly catering for contract/freelance "knowledge-based workers", but the info we have available should give you an idea of what you need to do to keep within the law and deal with HMRC (the UK's version of IRS for all our Amercian readers)

 

[mudaudio]

Others can probably give much better advice, but here goes.

Being a sole trader is pretty simple, although you would need to begin filing income tax returns, etc. The advantage of the App Store is that payments are made periodically (month, quarterly?) so you'd end up with a series of 4/12 lumps sums to declare on your tax return. (much easier than thousands of individual transactions). That wouldn't be too hard to deal with from a paperwork point of view.

Or you could set up a limited company. This could be useful if you have a longer term view to build a proper business. This could also have tax advantages, I dunno. the tax on a business's profits may be less than your own income tax liability (if you're already earning a high salary). Don't quote me on that though.

(I am just talking from experience moving from self-employed sole trader to a LTD company, where I used to have no salary (just dividends) and now it's grown I've gone onto salary, with PAYE etc.)

hope this helps, do check the facts though, I have made a few mistakes in the past and maybe I still am!

 

[Pring]

Thanks guys, that's a great help.