ACCOUNTING SERVICES FOR WRITERS AND AUTHORS
We have specialist accountants who can submit accounts for writers and authors to HMRC. We provide accounting services for full-time writers and even for occasional writers. We do our best to learn about their account status and optimize their tax liabilities.Get a Quote Now
The foremost question to answer is whether you are employed or not. You are most probably self-employed if you are not working for publishers or news companies directly.
Our tax experts team will find out whether they can consider your income from self-employment as a trading income or not. The team handles your account directly to ensure that if any tax payment is due. They pay due taxes two times in a year by choosing the self-assessment system of tax payments.
In case you work as a writer or author for an employer, our team ensures that your employer correctly deducts taxes at the source. Moreover, if you have several income sources, our tax experts help you in declaring them correctly.
If you handle many contracts in the UK and abroad, we depute a dedicated accountant to manage the accounting activities. The team also ensures two essential things: secure payment of due taxes by optimizing the tax payments and ultimately ensuring that you comply with the taxation laws. Nobody would ever like to get into HMRC investigation problems. However, it is quite possible to put yourself into trouble because the UK taxation laws are too complicated. We work intending to provide peace of mind to our clients.
HOW TO WORK OUT YOUR TAXES?
If you are working as a writer, you may have several income sources. They may include the income from writing books or writing ad-hoc articles, or even copywriting, and we account for all of those income sources. It is vital to understand that HMRC wants to classify taxpayers rightly as employed or self-employed. Our tax experts help you register in the correct category since HMRC has clearly defined the precise rules to determine the right position.
In rare cases, some writers and authors fall under the category of “Reserved Trading Income Status,” which they earlier referred to as “Reserved Schedule D Status.” They will be deemed self-employed and will continue to be taxed accordingly to discharge tax payments properly by ensuring no possibility of any employment break.
THE ALLOWABLE EXPENSES FOR WRITERS AND AUTHORS TO CLAIM?
An Expense refers to something essential to operate the business. Below is a list of allowable tax deductions for writers and authors from their tax liabilities.
* · MARKETING COSTS – Business cards, reprints of your work
* · WEBSITE COSTS – Hosting a website and maintaining it to promote your working
* · TRAVELING EXPENSES – Train tickets, petrol costs, etc
* · ACCOMMODATION – Hotel expenses for overnight stays for business purposes
* · COMPUTING EQUIPMENT – Laptops, printers, and editing software
* · INSURANCE FOR THE ABOVE COMPUTING EQUIPMENT – To protect your livelihood
* · COMMISSIONS – Fees paid to literary agents
For a self-employed person who works from home, we can suggest to include household expenses which you can attribute to your business. Those costs include fees for heating, phone service charges, a room used as your office, etc.
DOUBLE TAXATION AGREEMENTS
The UK government has double taxation agreements with several other countries. As a taxpayer, it is your responsibility to optimize the taxes payable in those countries. We provide guidance and assistance to authors and writers for avoiding double taxation. If you do not prevent or reduce your taxes in time, HMRC can refuse to give any relief later. Our expert team ensures that such a situation never arises.
If the other country does not fall under the double taxation ambit, we suggest you ensure full compliance and thereby help you avoid excess tax payments.
THE COMMON PITFALLS
Taxpayers usually make a common mistake of showing income net of VAT or any commission to agents. It is a wring practice. You should always declare gross income and show such commission and VAT expenses separately and claim as a deduction from such income.
Last year, we detected a new type of problem of new cash basis. HMRC referred to it as simplified expenses. If you opt for this, you cannot set-off losses against other income and limit some claims to costs. The earning basis provides more flexibility, which implies that you declare the income as earned instead of received and declare the costs as incurred instead of paid.