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  1. #1
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    Reselling satellite internet - tax q?

    Hey! I live in a very rural area and the internet offerings are obviously quite poor. I've heard neighbours say they'd happily pay more for decent internet (average here seems to be less than 10Mbps, 4G is quicker but lots more latency and prone to drop outs indoors) and I was wondering if anyone has any advise for the financial side of it - I am planning on installing a satellite internet system and then use long range antennae on my roof to send it to neighbours, who would pay a monthly "fee" to cover my costs with a small profit to help save for better equipment. I understand other people do this and was wondering if anyone here does, or know someone who does this who could help me out with the financial side. I only ask because with my job I am very close to the higher tax band according to this tax calculator (https://www.income-tax.co.uk/) meaning basically any money I make from this would be taxed at 40% if it's accountable as income. Do I need to worry about this?

    Thanks in advance

  2. #2
    ViX Beta Tester birdman's Avatar

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    Quote Originally Posted by Mandery View Post
    I am planning on installing a satellite internet system and then use long range antennae on my roof to send it to neighbours
    Given how far such a signal has to travel I would expect that to have a high latency.
    I only ask because with my job I am very close to the higher tax band according to this tax calculator [cut] meaning basically any money I make from this would be taxed at 40% if it's accountable as income. Do I need to worry about this?
    No, as if you are earning that much you should be happy to pay more tax.
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  3. #3
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    Satellite broadband is not really suitable for redistribution due to relatively low data caps - usually just a few Gb per month. Latency is usually very high making it unusable for skype etc. Also most geo-locked services will not work without a proxy. As regards the tax implications - its income and taxable. You could set up a group not-for-profit scheme and don't try to get the neighbours to pay for YOUR equipment.
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  4. #4
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    Quote Originally Posted by Mandery View Post
    Hey! I live in a very rural area and the internet offerings are obviously quite poor. I've heard neighbours say they'd happily pay more for decent internet (average here seems to be less than 10Mbps, 4G is quicker but lots more latency and prone to drop outs indoors) and I was wondering if anyone has any advise for the financial side of it - I am planning on installing a satellite internet system and then use long range antennae on my roof to send it to neighbours, who would pay a monthly "fee" to cover my costs with a small profit to help save for better equipment. I understand other people do this and was wondering if anyone here does, or know someone who does this who could help me out with the financial side. I only ask because with my job I am very close to the higher tax band according to this tax calculator (https://www.income-tax.co.uk/) meaning basically any money I make from this would be taxed at 40% if it's accountable as income. Do I need to worry about this?

    Thanks in advance
    If going down this route do your research first. Neighbours may be dissatisfied with their existing connection rates and claim they would pay more until they find out the true costs for the alternative solutions. Depending on individual usage, many people are more than satisfied with 10Mbps as not everyone uses IPTV or plays games etc. For many other types of Internet services the speed limitation is not your connection speed to your supplier but the speed of the slowest link in the connection to the final web site.

    Keep a seperate set of books and detail all expenditure and income. You may find that you don't make any profit on which to be taxed. Don't overlook bad debts - don't give credit - or you may find yourself paying for someone else's usage. Legally who will you customers have a contract with? You or the internet supplier?
    Extrend ET10K, 2 x satellite tuners 28.2 (UK Freesat channels), 2 x hybrid (UK Freeview channels)

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