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Permlink Replies: 4 - Pages: 1 - Last Post: Sep 22, 2017 2:58 AM Last Post By: Notjohn Threads: [ Previous | Next ]
Alan Peters

Posts: 2
Registered: 09/21/17
Tax
Posted: Sep 21, 2017 5:53 AM
 
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Hi,

Can anybody point me to how I register tax details. My first paperback is almost ready to come out, and Amazon are charging 30% text. I am in the UK, and their website says that the US has a 'treaty' with the UK which I expect means lower tax, but I have no idea what to do next. Any advice welcome.

Thanks,

Alan
Donna St Felix

Posts: 5,448
Registered: 09/18/13
Re: Tax
Posted: Sep 21, 2017 6:18 AM   in response to: Alan Peters in response to: Alan Peters
 
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Alan Peters wrote:
Can anybody point me to how I register tax details. My first paperback is almost ready to come out, and Amazon are charging 30% text. I am in the UK, and their website says that the US has a 'treaty' with the UK which I expect means lower tax, but I have no idea what to do next. Any advice welcome.

I am not in the UK but I do know there are recent forum conversations about it. You need to enter your national insurance number, I believe. I'm sure someone who knows for sure will post a reply.
Joseph M Erhardt

Posts: 4,458
Registered: 12/21/15
Re: Tax
Posted: Sep 21, 2017 6:32 AM   in response to: Alan Peters in response to: Alan Peters
 
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Yes, use your NI number. Your withholding on the U.S. side should be zero. Of course, you do have to report income to the Crown per its tax laws.
Mrs Julia Evans

Posts: 643
Registered: 05/22/16
Re: Tax
Posted: Sep 21, 2017 11:54 AM   in response to: Alan Peters in response to: Alan Peters
 
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Hi Alan,

You need to do two things.

The first is get onto the KDP site and register your tax details to establish that you are a bona fide taxpayer in the UK. You can either use your NINO or your 10 digit UTR if you are already registered in the UK for self-assessment. If they ask about which article it comes under, I think Royalties come under Article 12 of the DT agreement.

That brings me to the second thing. If already registered for SA, then you simply need to let HMRC know that you have a new source of income, so that you complete a self-employment page. If you aren't yet registered for SA then you need to register for a UTR (unique taxpayer reference) and let them know your date of commencement. DO NOT declare your income as royalties. If you're an author you are self-employed, and should declare your income as such. You have to register by 5th October following the end of the tax year in which you started trading, so if it was before 6/4/2017, you only have a couple of weeks left.

If all this is double-Dutch to you, I suggest you go onto the HMRC pages on the gov.uk website, and you'll find all you need to know about record-keeping, Class 2 & 4 NIC's etc. They have some excellent help-sheets to get you started which will answer most of your questions.

One last thing, if you fail to register to have your income paid by the 'zon without a tax withholding, you'll have a bit of hassle trying to claim it back. I suggest you sort that out first, because I think I'm right in saying that the 'zon will give you back anything you've had deducted during the financial year if it was deducted unnecessarily. Once the year ends, it's up to you to it sort out. (If I've got that bit wrong, no doubt someone will correct me.)

Hope that helps.

Good luck. J
Notjohn

Posts: 22,982
Registered: 02/27/13
Re: Tax
Posted: Sep 22, 2017 2:58 AM   in response to: Mrs Julia Evans in response to: Mrs Julia Evans
 
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DO NOT declare your income as royalties. If you're an author you are self-employed, and should declare your income as such

That tracks with US policy, and it is something that trips up a lot of self-publishers. "Royalties" under US law are "unearned income," like oil coming out of a well or payments from a patent, but royalties from books we write are earned income and reported a Schedule C for self employment. (When we die, however, our heirs will have unearned income because they didn't write the books.)

(Use CreateSpace for paperbacks; use KDP for ebooks.)

Good luck! -- NJ

Notjohn's Guide to E-Book & Print Formatting

The blog:
http://notjohnkdp.blogspot.com
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