What does “Tax Deductible” mean? The answer seems poke-in-the-eye obvious. Spend money on stuff and you can deduct what you’ve spent from your tax bill. Right? Wrong. Tax deductible means you can deduct it from the amount you’ve earned before working out how much tax you owe. For example, Theo Read more…
Olivia is an author in her spare time and has written her first book. She’s thrilled that she’s been offered a publishing deal to pay her an advance of £50,000. Then she discovers that the £50,000 will be added to her income for the year. As she already has a good income from Read more…
The 20/21 tax year has been a difficult year financially for many due to the pandemic and you may have had unexpected changes to your household income. If you haven’t been claiming Child Benefit payments, it’s worth checking whether you would have been entitled to Child Benefit payments for 20/21. Read more…
Many of our self published authors get the majority of their income from Kindle Direct Publishing (KDP). From a VAT perspective this is treated as a business-to-business sale and takes place where the customer (KDP) is based. It is outside the scope of UK VAT and therefore there is no Read more…
One of the early tax breaks to help businesses dealing with coronavirus was the ability to defer VAT due due in the period 20 March 2020 to 30 June 2020. In practice that means the VAT returns for February, March or April 2020. This VAT was only ever deferred and Read more…
The tax man isn’t always Scrooge when it comes to celebrating Christmas provided you’re running a limited company. Your company can pay for a Christmas party for your employees (including you if you are a director) for up to £150 per head. Here are some conditions: The £150 is not Read more…
The Government has announced two further grants to support the self employed during Coronavirus. To qualify self employed individuals or members of a partnership must: have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants) Read more…
As self-employed individual who works from home is entitled to claim any costs that are wholly and exclusively incurred for business.If you incur costs that have both a business and personal element you may claim a proportion of these costs. How much can I claim? Use the HMRC monthly fixed Read more…
This a question that we’re often asked. Unfortunately, as with so many tax questions, the answer isn’t a straight yes or no… it’s a maybe. There are many prizes and awards open to authors and other creatives and entering competitions or seeking awards is a normal part of these professions Read more…
It isn’t a legal requirement to have a business bank account but, unless you have just a few transactions a year, we’d recommend having a separate account for your writing income. Here’s why: You’ll save time (and possibly money). Having your business and personal accounts mixed up means a lot Read more…