Tax Evasion and Benefit Claims When earning a RL living from SL

I am making slightly more than my sickness benefit allows now so I've signed off.
However a lot of my work is created by my partner and other SL artsist regardless I front the store so between what my partner does and I manage its enough that I no longer require benefits which make me feel proud and delighted that a hobby SL helped me develop now allows me to be self dependant.
Just makes me wonder how many ppl dont declare their income to the tax man in SL

I bet its a fair few

Personaly I couldnt live with that hanging over my head.

You did the right thing by notifying the taxman. But even if you hadn't, then Paypal would've notified the taxman for you. Paypal are really nice like that.

LillyBeth, here's my take on things:

First you seem to have internalised the false, but common, meme that work is always 'unpleasant' and that anything one enjoys doing cannot be 'work'. You have to move past this.

Secondly, I'd take the advice of the benefits office and stash that cash in the bank, or better yet an ISA where it'll get a fair bit of tax-free interest, in case some jobsworth decides to claw back 'overpayments'. It happens and it's better to be prepared for eventualities than to be caught off-guard and maxed out on your credit cards. Be sure to keep copies of your accounts so that you can show where your money comes from, what your operating expenses are, etc.

Thirdly, if you really are earning enough to be in even the lowest of tax brackets, you better get professional advice. You're in uncharted territory here and all it takes is one small-minded jobsworth in the tax office or a jealous grass to bring your hard-earned house of cards tumbling down. Don't be coy about claiming tax deductions for your computer, software, peripherals, office furniture, internet connection, etc. They are now your tools. On a side-note all investment in your tools can be written off against your taxes. Look up 'Investment in Plant & Machinery'. IIRC, it's amortised over 4 years, though that might have changed since I last checked.

And lastly, give yourself a great big pat-on-the-back for doing so well. Good on you! I consider myself lucky if I earn enough to cover my tier and subscription payments.

Is there another way to get money from cashing in Lindens... Me and Paypal are at war because I use to have a business selling Lego blocks, then I ended my business and let my account go inactive and then it was canciled. But Paypal still has my bank listed. I tried to sign up for a personal account but could not use the bank I have my money in because its attached to this now dead business account. (The business was in 2000 and I made about 3.50 cents so I closed it for lack of business)

Paypal ordered me to switch banks in order to have a new paypal account. They told me they would accept no other way. I told them the business was long dead. They did not care and insisted I get a new bank. They would not accept a different account with the same bank. Had to be a new bank.... I said no way.

Congratulations on doing so well. It's admirable I'm puzzled though why you were told that it would be difficult to go back on benefits.

I was on IB for a long time before I got a part-time job and I did that via the Work Assist programme at the Jobcentre. They were incredibly helpful, got me as many little extras as they could - small grants to tide me over coming off benefit and buy some equipment. They told me to get in touch at any time if things were proving difficult.

They also got me onto Tax Credits, which now pay a third of my monthly income, and that got me entitlement to free dental treatment, free prescriptions, free eye tests and money off glasses. All things I could have done with while sick but there you go.

I was also assured that if I fell ill again within the first year of my new job I could go straight back onto benefits. It's done me the power of good not to be worrying about having yet another form to fill in to prove my state of health, and my self-confidence has improved enormously.

Maybe your local office isn't as helpful, but it might be worth asking them to put you on the same programme so you have back-up when you need it.

Sorry, Magnum. Other than getting LL to send you a check, I've not got a clue.

I'm about one hundred miles away from being an expert on this kind of stuff. Somebody will be along shortly to give you a lift though. Just make sure you show em a bit of leg as they're passing.

Good for you Lil!

I know just what you mean about how odd it feels having your 'hobby' turn into a business, as I've been in the exact same situation in the past. I went from playing around in Macromedia Flash throwing together animations and interactive menu widgets for friends’ websites to running my own business in a matter of two months. I even tried sticking to the "under 16 hours a week" rule for a while too until the company I was freelancing for at the time started getting desperate for higher volumes of work and began offering me silly amounts of money per hour to exceed the 16 hour limit.

I know it may seem daunting at first to suddenly have the responsibilities of running your own business thrust upon you, especially when the work your doing still feels like 'just a hobby'. You may feel the urge to act more business-like, sit up a little straighter and maybe swap the dressing gown and fluffy carpet slippers for a nice suit and pair of sensible shoes, and possibly even feel an odd sense of guilt for having so much fun when you should be 'working'. Don't worry it will pass though, and as long as you're sensible and keep financial records of your earnings and expenses, you'll do just fine! (Oh and just so you know, in the UK you can claim 100% of the value of computer equipment used for business as a tax deduction after just 12 months. )

So congratulations! Through your hard work, determination and talent you've managed to attain something that very few people in life get to experience... the opportunity to support yourself by doing something you truly enjoy! Once the sense of trepidation and bewilderment subsides you'll find that working for yourself doing something you love is one of the most rewarding experiences you'll ever have.

As for your concerns about the longevity of your new found career, don’t forget that the skills you've learnt here are equally valuable in RL. Take a look at the web-sites of local businesses in your area and check the local newspaper for advertisements then ask yourself "Could I create a better banner ad/logo/ad lay-out?". If the answer is yes then try approaching some of them and offering to do just that! You'll probably get a few "Thanks but no!" type responses but then you may just find that there's a whole slew of local business owners looking at their website/newspaper ad and bemoaning the fact that they can't find a decent designer/artist to liven it up a little.

The truth is I've met plenty of 'professional designers' who don't seem to gain any enjoyment from their job, and while experience can be a valuable asset it's no substitute for the creativity of someone who's passionate about their work! (After all, creativity without passion is like a flashy sports car without an engine, it may look cool but the chances are it won't move anyone! ) As long as you enjoy what you do and don't let the perception of responsibility sully that enjoyment I'm sure you'll do just great!


Congrats again,

Sun.

you could always lower your prices

ah Sunnen. What a kind reply...tearing up ( honestly im such a soft ass)

I want to take the Adobe Photoshop exam thats were my career lies I believe with it you have a certain amount of 'power' so thats my plan long term.

The reason why I was advised NOT to sign off totally was because in the UK to claim incapacity benefit you have to of paid enough national insurance contributions. I had upto the point of 1st getting sick. That was 5 yrs ago. So if I signed off now and for what ever reason, health or competition or SL ceasing to exsist they would go off this years tax & NA contributions and as I have been claiming sickness I havent paid enough.
So i would be forced to go onto Income support which is means tested...in other words my working partner would be considered as having enough income to support me.

So anyway...I declare Im doing permited work and work 16 hours a week and I get a year until my renewal evaluation comes round.
I do still suffer terrible days of health but its not an illness recognised by the NHS benzodiazepine addiction altho theres thousands of ppl suffering from it in the UK alone..if the NHS recognised it they would have serious compensation claims against docs who irresponsibily handed them out like candy.

I 'could' prolly get diagnosed with M.E easier then have that 'lable' they seem to need.

It is scary. I know I can find some work from home my strongest skill is marketing always has been but I'll NEVER enjoy it like I do making textures & learning Photoshop and other programs...I consider myself blessed and very lucky indeed.

I was a bad ass at school....but I always loved Art was the only qualification I came away with the rest I didnt even turn up for the exam ( was expelled LOL ) so to find myself in this position earning money from what set off as a game ( and dont get me wrong Im not making thousands here LOL but its enough to make a difference ) and I am truely happy.

Its done wonders for my dying self esteem..being sick at 33 and not able to leave the house to go to a regular 9-5 job plus the loss of what was a good income shattered me and not becuz of depression but because of the poisonous drugs the doc tossed at me as a 'quick fix' rather than offering me councelling.

Im over my anger and the 'why me' and have a long way to go b4 im free of that crap but SL has given me a purpose. And we all need that or we'd go insane.

BTW if any-one reads this who happens to be taking tranquilsors or anti depresants Xanax, Lithium, Valium. Diazepam. Triazepam, or any of the 'benzo' family and feel theyre having problems or its made them iller rather than better plz let me know in game I can direct you to a Yahoo group who are FANTASTIC a support & advise on coming off.

I also have tel numbers for CITA ( councilling for involantary tranquilisor addiction ) in the UK who talk to ppl all over the world but mainly US & UK.

Its a massive problem and many ppl dont even know theyre already hooked just suffering a series of various mental & physical illnesses and dont make the connection.

Id like to point you in the right direction if you would like advise.

Thanks for all youru replies guys...esp Sun my bud!