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View Full Version : Tax breaks for writers [moved from self-publishing]



CordeilaVega
01-18-2012, 09:41 PM
http://www.guardian.co.uk/books/2012/jan/16/ian-rankin-tax-incentives-authors?newsfeed=true

Gives some insight into how low advances for first novels are now in the UK.

shaldna
01-18-2012, 10:39 PM
If your advance is low then it's because you publisher doesn't think you will sell well enough to earn out anything larger.

Publishers are not stupid and they are very, very good at working out the earning potential of any given book. Yes, there will be surprises and the occasional disastrous flop, but on the whole they get it right.

In Ireland for a while artists didn't have to pay tax on their earnings. This was cut a few years ago for many reasons - one being that lots of writers, artists etc moved to Ireland to avoid paying tax, and also because there was a huge outcry at people who were working their balls off in non-art related jobs and were getting taxed to the neck for it.

In addition, Ireland has a massive wealth of writers and musicians, and the amount of taxation that was lost through the scheme ran into tens of millions every year.

The scheme achieved it's original goal though, which was to increase the number of people working in the arts.

Old Hack
01-18-2012, 11:19 PM
As self-publishers rarely pay themselves advances I'm going to move this thread to the Round Table. Hang onto your hats.

BunnyMaz
01-18-2012, 11:59 PM
I'll be honest, I'd love to become a successful published writer. I utterly reject the idea that I should be entitled to special treatment for my writing work when others working just as hard elsewhere are not. 33k per year tax free is a HUGE amount of money. The highest paying job I've had paid me 14k per year, and I paid my 20% tax on that.

In any case though, why should a writer be exempt from paying tax on a higher amount than the rest of the country? There are already low income tax exemptions. Our taxes exist for a reason. I pay them with pride.

shaldna
01-19-2012, 01:15 AM
I'll be honest, I'd love to become a successful published writer. I utterly reject the idea that I should be entitled to special treatment for my writing work when others working just as hard elsewhere are not. 33k per year tax free is a HUGE amount of money. The highest paying job I've had paid me 14k per year, and I paid my 20% tax on that.

In any case though, why should a writer be exempt from paying tax on a higher amount than the rest of the country? There are already low income tax exemptions. Our taxes exist for a reason. I pay them with pride.

This is my feelings on it too. I DO earn around that figure, and I'm paying 600 a month in tax and national insurance contributions. I'd be livid if someone else who was earning the same wasn't having to pay it. 600 is A LOT of money. That would mean I was paying 7000 a year MORE than a writer earning the same money.

That said, I have an issue with the higher tax brackets - I mean, there comes a point when folks are paying HALF of their income in tax, which I don't think is right. I mean, I get that our taxes pay for healthcare and schools and stuff, but is that person earning 1million a year using more healthcare and schools than someone earning 25k? The reality is that they are probably using LESS of the state provided services, relying more on private schools and healthcare etc.

Personally I feel that the same percentage of tax should be applied across the board, rather than the tiered system we have now.