tax due on adsense revenue

[fred123456]

Hi,

this year i received a cheque from google for adsense i had got from allowing their adwords on my website, roughly $500. Now i reinvested the money in adsense and yahoo listing $299. Unfortunately site got hacked and destroyed and i had no backup, however i do not mind this.

The thing that i am concerned about is my tax implications, i am paye worker on the high tax, the website was more a hobbie, but i want to know how much tax i should declare for this $500 and which documents i need to fill, any help would be much appreciated, hate dealing with tax and would not like any problems.

Kind Regards
Fred.

 

[Setanta12]

It wasn't a capital gain - and you're not trading (someone will post the quote 'adventure ....' etc here to flesh out my answer); you're engaged in a hobby.

You're ok. No tax ... this time, although attempts at earning could be treated as 'trading'.

Winning at bookies is okay, but if you devoted enough time at it (and won enough) - it would be taxed as a trade.