Selling memberships and paid articles on note is classified as a 'highly safe side hustle' that is difficult for your company to discover.

I'm LaLaLa, currently in the trial-and-error phase.
Found it by talking to AI! The complete guide to 'taxes and tax returns' for monetizing on note without your company finding out.

To everyone aiming to monetize on note as a side hustle, thank you for your hard work every day as you go through trial and error managing your articles and memberships!

This time, I would like to share with you some important information regarding 'taxes and measures to prevent your company from finding out about your side hustle on note,' which I thoroughly organized while talking with AI myself.

Even if you manage to increase your sales on note, if you make a mistake with tax procedures, there is a risk of receiving unexpected penalties or having your side hustle discovered by your main employer.

First, please check whether your company prohibits side hustles or requires notification and approval. If you want to operate safely without your company knowing, you must absolutely grasp the points I am about to discuss.

Why is a side hustle on note 'difficult for your company to discover'?

In conclusion, selling memberships and paid articles on note is classified as a 'highly safe side hustle that is overwhelmingly difficult for your company to discover' among the many side hustles out there.

The reason lies in the tax system.

1. Income classification is not 'employment income'

When you do a side hustle like a part-time job, that income becomes 'employment income,' which is added to your main salary, and a notification for resident tax is automatically sent to your company.

However, income from note is not treated as employment income, but rather as 'miscellaneous income'or'business income.' Therefore, as long as you file your tax return correctly, you can 100% control it yourself so that no notification is sent to your company.

2. There is no withholding tax (deduction) on the note side

As stated in the official note Help Center, income tax is not deducted (withheld) in advance from your note sales. In other words, since there is no tax history flowing to your company from anywhere, there is room for you to control your own tax filings.

The turning point of '200,000 yen in annual income' that determines your fate

The procedures you should take will change drastically depending on how much 'income' you earned from your side hustle in a year. What is important here is the point that you shouldcalculate based on 'income (profit)' rather than 'revenue (sales)'.

Income = Total annual sales - Necessary expenses

As the end of the year (December 31st) approaches, let's calculate your 'income' for the year using this formula.

Pattern A: If your income 'exceeded 200,000 yen'

You need to file an 'income tax return' with the tax office during the period ofFebruary 16th to March 15thof the following year. If you use the National Tax Agency's 'Tax Return Preparation Corner' or similar services, you can easily complete the procedure from your smartphone or computer.

Pattern B: If your income is '200,000 yen or less'

Under national law (special provisions for company employees), filing an income tax return is generally not required.

However, you must still submit a 'resident tax declaration' to your local municipal office (such as the City Tax Division).

⚠️ This is the biggest blind spot!

The ironclad rule for 'income tax and resident tax declarations' to ensure your company never finds out

To prevent your side hustle from being revealed to your main employer due to tax procedures, be sure to follow these measures thoroughly. What you need to do is quite simple.

Select 'Self-payment (Ordinary Collection)' as the resident tax collection method

When preparing your income tax return or filling out the resident tax declaration form at the municipal office, there is a section to select the resident tax collection method.

Make sure to circle (or check) 'Self-payment (Ordinary Collection)' here.

If you leave this as 'Special Collection (deducted from salary),' the resident tax for your side hustle will be deducted from your main salary, and the payroll department at your company will be notified. As long as you choose 'Self-payment,' the resident tax bill (payment slip) for your note side hustle will be sent directly to your home, not your company.

Potential 'expenses' for your note side hustle

To keep taxes low and 'keep your income under 200,000 yen to avoid the need for an income tax return,' keeping a record of your daily expenses without omission is your best defense.

For example, 'if you have 300,000 yen in sales but 110,000 yen in expenses, your income is 190,000 yen,' meaning an income tax return is not required.

Actively record any costs that can be explained as being 'directly related' to writing or operating your note.

1. Costs directly related to operating note

• note platform usage fees: Fees deducted from sales (such as transfer fees or administrative fees)

  1. *If 10,000 yen in membership fees are sold and 8,500 yen is transferred to your account, count 10,000 yen as 'sales' for tax calculation purposes, and treat the 1,500 yen deducted as an expense under 'payment fees'.

• note Premium monthly fee: If you are subscribed for the purpose of operating a subscription magazine, etc.

• Paid article purchase costs: Other people's note articles purchased for market research, competitor analysis, or study

2. Costs related to article ideas and content creation

• Interview and travel expenses: Train fares, bus fares, gasoline costs, accommodation fees, etc., incurred while traveling to find article ideas or conduct interviews

• Book and reference material costs: Books, magazines, and subscription fees for paid news sites purchased to gain the know-how or knowledge to write articles

• Cost of products introduced in articles: Gadgets, cosmetics, food, etc., actually purchased to write review articles

• Photo/illustration costs: Usage fees for paid stock sites purchased for article eye-catching images or illustrations

3. Expenses for work environment and tools

• Computers, smartphones, and peripherals: Computers, tablets, smartphones, keyboards, routers, etc., used for writing

  1. *For expensive items like computers exceeding 100,000 yen, you may need to follow a procedure called 'depreciation,' where the cost is spread over several years rather than deducted all at once.

• Paid software/app fees: Monthly subscriptions for image editing software (such as Photoshop), writing apps, AI tools, etc.

4. 'Household expense allocation' to deduct home costs as business expenses

If you write note articles at home, you can calculate a portion of your living expenses based on the 'percentage used for work (time, floor area, etc.)' and deduct them as expenses.

• Rent: The percentage of the total room area occupied by your workspace (e.g., 15-20%)

• Electricity bills: The percentage based on work hours or days (e.g., 10-20%)

• Communication expenses (internet/smartphone bills): The percentage based on the time spent posting to note or conducting research (e.g., 30-50%)

💡 The golden rule for claiming expenses

The risks of 'not' filing a tax return

If your income exceeds 200,000 yen and you neglect to file (non-filing), it will likely be discovered through a tax office investigation. The National Tax Agency can investigate bank account histories and note sales data, so you cannot hide it forever.

If you skip filing, you may face the following worst-case scenarios.

1. Paying higher taxes than originally required (additional tax collection)

   • Penalty tax for failure to file: As a penalty for not filing within the deadline, 15% to 30% is added to the original tax amount.

   • Delinquent tax: Interest (up to 14.6% per annum) is added on a pro-rata basis for the number of days past the original deadline.

   • Heavy additional tax: If it is deemed that you intentionally concealed income, a heavy penalty of up to 40% may be imposed.

2. Certain discovery by your main employer

   1. When a tax office audit occurs, the corrected resident tax data is notified to your main employer. The company's payroll staff will definitely notice that 'this employee has another significant source of income unknown to the company.'

3. Retrospective audits

   1. The tax office can audit you retroactively for up to 5 years (7 years in cases of malicious intent). It is very common to be suddenly billed for past years all at once, along with heavy penalties, several years later.

Hidden risks of being 'discovered by the company' other than taxes

Finally, even if your tax procedures are perfect, I will share two points that are easy to overlook in terms of operation. In fact, the thing you need to be most careful about on note is not taxes, but 'personal identification'.

• Posting internal company matters or photos: Do not include specific internal company matters that could identify your main employer, or photos of the office that might be recognized, in your articles.

• Linking with SNS accounts: Cases where your account is discovered by your real name, colleagues, or acquaintances from your main job when you link it with your personal SNS accounts.

As long as you are careful about these things and operate anonymously (using a pen name, etc.), it is highly unlikely that your company will find out.

Summary

If you acquire the correct knowledge, choose 'pay by yourself (ordinary collection)' when filing your tax return or resident tax declaration, and keep your daily receipts properly, there is nothing to fear about having a side hustle on note. You can safely and confidently grow your content.

Let's follow the rules and aim for monetization on note in a smart and fun way!