Put Off Going Self Employed As A Writer

ComeTheRevolution

Writing is commonly viewed as a hobby that anyone can do if they had time and indeed the world and his wife seem to have a book in them. HMRC are happy to take a cut from any work sold above whatever parameters via a tax return and not declaring it is an offence. It's very difficult to earn 50 quid from writing and doing so commands respect from peers while appearing frivolous to others. A freedom of information request for decision-making on creative work may be useful.

Re-worded now I'm not typing on my phone: As any money made from Writing is declarable to the Inland Revenue, they should regard it as viable work.

Also: Any commissions, letters of acceptance, contracts and proof of payment could be included with the WTC application.

Truegho

ComeTheRevolution wrote: »

Writing is commonly viewed as a hobby that anyone can do if they had time and indeed the world and his wife seem to have a book in them. HMRC are happy to take a cut from any work sold above whatever parameters via a tax return and not declaring it is an offence. It's very difficult to earn 50 quid from writing and doing so commands respect from peers while appearing frivolous to others. A freedom of information request for decision-making on creative work may be useful.

I appreciate your comment on writing being commonly viewed as a "hobby". However, at the same time, I believe that there are many people actually making a living from writing, be it freelancing for companies or writing and publishing their own ebooks. I am feeling particularly disappointed that I cannot sign off the dole and start my own writing business, especially with all that hullabaloo this morning when I rang up Working Tax Credits and got the impression that it wouldn't be a wise thing to do, given the fact that - as the lady who took my call pointed out - my business would not be earning more than £200 in the first few months of trading. And yet, in the same breath, she said that she "understood" the difficulties new businesses have in making good money when they are first starting off. Go figure, guys.

ComeTheRevolution

Truegho wrote: »

I appreciate your comment on writing being commonly viewed as a "hobby". However, at the same time, I believe that there are many people actually making a living from writing......

You either did not read all of my reply or you misunderstood me (I have edited my gobble-de-gook).

I would make a freedom of information request to find out their guidelines on how they quantify creative professional work as a viable start-up business.

It may be possible the person you spoke to has a personal feeling that writing is a hobby or it may be that a general rule of hours vs income applies.

Also, have a look at Writers' Forums. Google phrases such as: 'tax credits writer' and see what other writers are saying.

Truegho

ComeTheRevolution wrote: »

You either did not read all of my reply or you misunderstood me (I have edited my gobble-de-gook).

I would make a freedom of information request to find out their guidelines on how they quantify creative professional work as a viable start-up business.

It may be possible the person you spoke to has a personal feeling that writing is a hobby or it may be that a general rule of hours vs income applies.

Also, have a look at Writers' Forums. Google phrases such as: 'tax credits writer' and see what other writers are saying.

Thank you, I will do that.

I need to do something to cheer me up, after that discouraging phone call I had today.

ComeTheRevolution

Ah, but as a writer you know discouragement comes from all sides until you make your first grand. It was a telephone conversation, not a rejection slip. Research!

osdset

pinkypoopydoo wrote: »

The minimum wage rule doesn't kick in immediately - as far as I'm aware, you get 12 months to build from scratch to proving you can earn minimum wage. TBH, I don't think that the requirement to earn minimum wage after TWELVE MONTHS of trading is ridiculous at all. That's a full years leeway to grow. Not really looney red-tape at all.

The generally accepted period to get to break even point for a new business is a minimum of three years, that was before the recession. Break even point does not necessarily mean that the director/s of the company are drawing any form of salary.

Many new enterprises that have solid financial backing and sound business plans go under within the three year period due to cash flow problems ( the cause of most business failure). Banks are unwilling to lend to established businesses without substantial collateral guaranteeing the loan, new ventures have virtually zero options for loans

One year is a totally unrealistic target for any new self employed venture HMRC know this, and so does the government.

sammyjammy

But is it reasonable to exepct to be backed up by benefits for more than one year? How long should they pay them before a decision is made that a business will never be viable?

osdset

sammyjammy wrote: »

But is it reasonable to exepct to be backed up by benefits for more than one year? How long should they pay them before a decision is made that a business will never be viable?

A fair point, unfortunately the self employed route is being vigorously pushed at claimants by the Welfare to Work sector and JCP without outlining the pitfalls.

neverdespairgirl

osdset wrote: »

The generally accepted period to get to break even point for a new business is a minimum of three years, that was before the recession. Break even point does not necessarily mean that the director/s of the company are drawing any form of salary.
....

One year is a totally unrealistic target for any new self employed venture HMRC know this, and so does the government.

Although it's still being self-employed, there is a real difference between setting up a business (say, a restaurant) and being self-employed as a service industry (say, a cleaner, or a window cleaner).

I'm self-employed, and my expenses were very few and limited to work I actually did, so although I didn't make much my first year of working, I did make some money.

notanewuser

osdset wrote: »

The generally accepted period to get to break even point for a new business is a minimum of three years, that was before the recession. Break even point does not necessarily mean that the director/s of the company are drawing any form of salary.

Many new enterprises that have solid financial backing and sound business plans go under within the three year period due to cash flow problems ( the cause of most business failure). Banks are unwilling to lend to established businesses without substantial collateral guaranteeing the loan, new ventures have virtually zero options for loans

One year is a totally unrealistic target for any new self employed venture HMRC know this, and so does the government.

DH and I have just completed our first year's trading as a limited company. Less than £100 set up costs and we turned over over £100k with profits of about £80k.

OP, you mentioned going self employed months and months ago. Have you actually done any writing in that time to see if you're any good at it?