Writing Shouldn’t Be Taxing

What steps should writers take when they sell their first piece of writing?

Money doesn’t grow on trees … but always pay the taxman what he’s owed! © Simon Whaley

Notes:

This article first appeared in Writing Magazine in April 2014 (some percentages and allowances may have changed).

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Congratulations! You’ve just sold your first piece of writing. Who do you tell first? Your family? Your friends? The tax man? Enjoy your moment of success, and then consider what this means.

As a paid writer, you need to start thinking about the business of freelance writing and, like all businesses, this means paying tax on your profits. If you haven’t already done so, register with HM Revenue & Customs (HMRC) online, or through your local tax office, as a self-employed writer (or your local tax authority website in your country). It doesn’t matter whether your writing is a part-time activity done in the evening after a day’s work or a full-time occupation, if you generate any income from it you need to tell the tax office. If you don’t, and the tax office later discover your undeclared earnings, you may be liable for a fine in addition to any unpaid tax.