Do I need to self-assess?

Justadmin88

Hi all,


I hope somebody can advise me. I've got a few books self-published on Amazon, and I'm starting to worry that I needed to register for self-assessment with HMRC.


To say I've made a profit would be laughable, I've sold a handful of copies amounting to around £20 in royalties if that - my expense for my editor alone was £50 a month so I haven't actually made any money from it. It's more of a labour of love lol.


I'm employed full time in local government, I don't have any other income streams. Do I need to register? I used the calculator on HMRC website to see if they say I need to register for self-assessment and from what I can gather on that it says to only register if I make more than £2500 of untaxed income - which I am nowhere near.


I don't really want to faff about with it just to be told I don't owe anything. Not trying to dodge anything, I'll pay if I need to, I'm just not sure if I do.


Many thanks for any help

HappyMJ

You don't owe anything so it's up to you. Technically if you get any income at all you must register but there is a difference between doing it as a hobby (not required) and doing it as a business (required).

It's not that hard to register and fill in a self assessment each year. You might find you get quite a lot back. You can opt out of paying National Insurance as your profit is very low.

I'd register.

ALIBOBSY

You pay for an Editor?????

Ali x

Justadmin88

Thanks, I'll think about registering then if it isn't too much hassle, but that's good to know that I'm not in any trouble for not registering and that the choice is mine.


And yes Alibobsy I do, do you know of a way of not paying for one?

martindow

An advantage of registering is that you can carry losses on to following years, so when you do start making a profit that will reduce your tax liability. Or is it likely to continue to be a loss making hobby?

Justadmin88

To be honest martindow I'm not sure if it will turn a profit or not. I'll keep writing because I enjoy the process and the (small) interaction I have with fans of my work. It'd be great if it did make some money but if it carries on as it is then it won't. Sounds like it really is up to me whether I register or not, my main concern would be getting into trouble if I didn't.

tiger_eyes

Self-publisher and editor here. If you have yet to turn a profit after business expenses, you have no taxable profit to declare and no taxes to pay. However, if I remember correctly, you may need to register with HMRC as part of ensuring that Amazon don't deduct US taxes before paying your royalties. Do you have the US tax situation sorted?

ALIBOBSY wrote: »

You pay for an Editor?????

A talented editor who specialises in fiction will have more paying clients than they can deal with. You wouldn't expect a skilled professional to work for nothing.

ALIBOBSY

tiger_eyes wrote: »

Self-publisher and editor here. If you have yet to turn a profit after business expenses, you have no taxable profit to declare and no taxes to pay. However, if I remember correctly, you may need to register with HMRC as part of ensuring that Amazon don't deduct US taxes before paying your royalties. Do you have the US tax situation sorted?



A talented editor who specialises in fiction will have more paying clients than they can deal with. You wouldn't expect a skilled professional to work for nothing.

I wouldn't expect someone to work for free of course, but I always assumed self published authors did all their own editing. I have looked into this as I am an aspiring author myself. Plenty of info out there to help you out. But obviously its a choice you make when you publish. I just assume on such small profit margins self publishers wouldn't pay for an editor until they starting selling a reasonable level of books to make it worth their while.

Ali x

tiger_eyes

ALIBOBSY wrote: »

I wouldn't expect someone to work for free of course, but I always assumed self published authors did all their own editing. I have looked into this as I am an aspiring author myself. Plenty of info out there to help you out. But obviously its a choice you make when you publish. I just assume on such small profit margins self publishers wouldn't pay for an editor until they starting selling a reasonable level of books to make it worth their while.

You make some good points and there is a broad spectrum of views on this issue. I don't personally think that most authors can self-edit well enough to publish their work without a paid editor, experienced beta readers, or a really good critique group. Editing fiction to a professional quality is a very specific skill that takes a lot of learning and practice. On top of that, the author rereading their work will never have the same experience as a reader coming in fresh. I've written a dozen novels and edited New York Times bestsellers and I still wouldn't publish without getting fresh eyes on my work. However, it's good practice to learn to self-edit your own work as thoroughly as possible, and as you say, some cash-strapped self-publishers rely on cheap or free alternatives. I obviously have a conflict of interest so I'll leave it at that. For further self-publishing advice I'd recommend the Kboards, and for advice on the craft of writing AbsoluteWrite.