Hi all , i have a question regarding Gross earning or net earning ?

TLDR

This one trips up so many of us, especially when you're getting paid in dollars and living in the UK. I've made this mistake myself, so let me save you the headache: for your tax figures, it's gross earnings you count, not the net amount hitting your account.

Should I declare gross or net earnings on my tax return?

Gross. In the UK, when you fill in your Self Assessment, HMRC wants to know what you actually earned before any platform deductions, processing fees, or site cuts came out. So if a site shows you made $2,000 in a month but you only received $1,600 after their cut and payout fees, the $2,000 is your starting figure.

The good news is those fees aren't lost money. They count as allowable business expenses, so you deduct them when working out your taxable profit. Keep screenshots or records of your gross earnings each month and your payout statements, because HMRC can ask to see both. Doing it the other way around - declaring only the net - is technically understating your income, and it also shortchanges you on things like your personal allowance calculations and any proof of income you might need for a mortgage or rental application later.

How do I handle the dollar-to-pound conversion?

Since you're paid in dollars, you convert everything into pounds using the exchange rate on the date you earned or received the money. HMRC accepts a reasonable, consistent method - a lot of people just use the HMRC's published yearly average exchange rate, which keeps things simple and defensible. Don't stress about matching the exact rate on every single payout day; consistency is what matters.

What some of us do is keep a simple spreadsheet: date, gross in dollars, rate used, gross in pounds, fees deducted, net received. Ten minutes a week and your Self Assessment basically fills itself in come January. Also remember you can deduct other business costs too - lighting, webcam, props, a chunk of your internet bill if it's used for work.

What about the money I reinvest or keep in the platform?

It still counts. Earnings left as credits on a site, tips held in a wallet, or anything you spend back on the platform is still income in the eyes of HMRC. Treat it the same as a cash payout - gross, converted, declared. It feels a bit harsh, but it protects you if you ever get a compliance check.

So: gross earnings converted to pounds, fees and expenses deducted after, records kept for at least five years. If your numbers are getting complicated or you're earning steadily, a chat with an accountant who understands self-employed creative work usually pays for itself. Anyone else found a conversion method they actually trust? I'd love to hear how you all keep your books tidy.