How do bloggers make money?
Blogging is far from a make money quick scheme, but it is possible to drive revenue from blogging. So how do bloggers make money?
Let’s start with the basics first. What is a blogger?
A blogger is…
A blogger is someone with an online platform that they use to post articles, pictures and general content about certain topics. The topic that you choose is totally up to you, but it should be as engaging and aimed at a specific audience as possible to be successful.
In the 1990s, blogs were commonly a form of online diary, and so blog posts always appeared in reverse chronological order (i.e. the most recent post came first).
Now, there are now more than 600 million blogs on the web and blogging is seen as a more lucrative pastime than a purely recreational one.
So how do bloggers make money?
There are a few ways. Here is a common selection of strategies:
- Include cost per click ads in your content
- Referral content – when you promote other companies’ products on your blog and get commission for every sale you assist. This is more lucrative if you become an influencer
- Sell sponsored posts
- Host courses and webinars (of course, in exchange for cash)
- You can pitch review content and get paid to write them
Whatever strategy you choose to help you start earning money for your blog, you mustn’t forget about tax. As soon as you start earning income from blogging, make sure you keep track of it (and any expenses) in case you need to declare it to HMRC.
What tax do you owe as a blogger?
As a blogger, the tax you pay is the same as the tax you pay on any other self-employment income.
It all depends on whether you’re a blogger full-time or whether you do it on the side of your day job. As a full-time blogger, the three taxes to be aware of are:
- Income Tax – this is, as you might expect, tax paid on your income. What you pay varies depending on how much you earn. Take a look at the tax bands for the 2020/21 tax year here.
- Class 2 National Insurance – this is tax you owe when your self-employment income exceeds £6,475. You pay a fixed rate of £3.05 per year.
- Class 4 National Insurance – this is tax you owe on your self-employment income after you exceed earnings of £9,501. You pay 9% on profits up to £50,000 and 2% on anything over that.
What if I blog on the side of my employment?
In this case, you treat blogging as as a regular side gig.
Your first £1000 per year earned from blogging is tax-free. You’re covered by the Trading Allowance.
Anything that you earn over the £1000 threshold will be taxed at your normal rate that you pay for your salary:
- Up to £50,000 at 20%
- Up to £150,000 at 40%
- £150,000+ at 45%
How to pay tax on your blogging income?
So now you know the answer to how do bloggers make money, all you need is to understand how to pay tax on it. And the answer is simple! You just need to complete a tax return.
This can be done yourself with HMRC or we can help you with it instead.
Get started here on your Self Assessment and we can assign you to your own personal accountant.
Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.
Have a minute? See how it works