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http://www.connectedinternet.co.uk/2007/03/02/do-you-declare-your-blog-income-and-pay-taxes/ -
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I for one decided to pay taxes to be on the safe side. Could mean serious punishment in my country (heavy fines, jail).
Another reason I decided to declare is because I'm self-employed now so I can shield a lot of my earnings (I have an accountant in the family) and adding the blog income to my main income means I pay a lower tax rate on that income as well (it's complicated)
Not outside the US anyway
In any case, if I could, I wouldn’t. Officially, in the whole of 2006 I made about $2,50 worth of dividends off of my PayPal MMF account, and that is it. I know, I’m a blasted insolent immigrant, took somebody’s job, and avoid taxes. Well, not entirely, I do pay sales tax, and petrol tax, since the roads (some of them are quite crappy, there goes suspension on my VW) are pretty much next to the only thing I get from US Government. :)
P. S. That was daft of me though. I’m pretty sure some silly bastard will squeal on me to the <abbr title="Internal Revenue Service">IRS</abbr>. :)
Well, I hope you didn't use your real name!
It may not be worth it to the IRS to chase you down for nickels and dimes, but if you are audited for another reason, chances are it will hurt you.
i believe my earnings are below the IRS threshold - which i have to pay as my site is hosted on US Servers.
i do not know how to pay HMRC - or even if it is them i should pay