REGISTERING AS SELF-EMPLOYED BEFORE YOU GAIN AN INCOME FROM WRITING
Hi all,
REGISTERING AS SELF-EMPLOYED BEFORE YOU GAIN AN INCOME FROM WRITING
As I am currently an unpublished writer it might, at first, seem a little odd to have set myself up as a Freelance Writer, i.e. registering as self-employed in this role for tax purposes and completing the online income tax self-assessment each January! (In my case, I was already self-employed as a Freelance Proofreader and simply added the writing role to my job title in the next January self-assessment. I originally registered as self-employed when I enrolled on my first proofreading course.) If you are an unpublished writer or a trainee proofreader I would strongly advise you to register as self-employed - you can then claim expenses and carry them over to the following tax year until (think positive!) you gain a self-employed income.
I have simply followed the tax advice in the annual WRITERS' & ARTISTS' YEARBOOK. Expenses can include laptops and computer software, courses, relevant books and DVDs (which both count as research), subscriptions, and postage. I keep a simple Excel 'Receipts' spreadsheet that I update as soon as I purchase things each tax year, and a more complicated Excel 'Tax' spreadsheet which I update every January (using a template) with a page for each tax year. My maths and spreadsheet skills are not very sophisticated - and this is made worse because one of my obsessive compulsive disorder (OCD) compulsions is counting (which began when I did A level maths, which I really struggled with). But I have managed to use Excel with the help of my partner.
The other reason I would advise unpublished writers and trainee proofreaders to register as self-employed is a psychological one. I subscribe to the Creativity Portal website's newsletter, which allows you to download a chapter from a book called 26 SIMPLE WAYS TO NURTURE YOUR CREATIVE LIFE (AN A TO Z LIST). Its top way is called "act as if":
[ITALICS:] What does "act as if" mean? Just what it says! Act as if you already are. It means trying a new role on for size, embracing a new mindset, and acting on your intention "to become" with reinforcing behaviors [...] And the payoff for this intentional role play comes when you realize your acting is no longer acting and you've rightly grown into the new role, becoming what you wanted to become.
Chris Dunmire, 26 SIMPLE WAYS TO NURTURE YOUR CREATIVE LIFE (AN A TO Z LIST)
In other words, if you take yourself seriously and act as a professional writer or proofreader then you are in the best mindset to actually become one. You can then approach literary agents, publishers, or potential clients with confidence in a professional manner.
Lastly, I would strongly recommend unpublished writers to read THE WRITERS' & ARTISTS' YEARBOOK GUIDE TO GETTING PUBLISHED: THE ESSENTIAL GUIDE FOR AUTHORS, by Harry Bingham. He is the founder of the Writers' Workshop. This book covers the whole publication process, including teaching you how to professionally present a manuscript for submission, write a synopsis, and approach literary agents. It is also very funny!
I hope this helps!
Best wishes,
Gemma
REGISTERING AS SELF-EMPLOYED BEFORE YOU GAIN AN INCOME FROM WRITING
As I am currently an unpublished writer it might, at first, seem a little odd to have set myself up as a Freelance Writer, i.e. registering as self-employed in this role for tax purposes and completing the online income tax self-assessment each January! (In my case, I was already self-employed as a Freelance Proofreader and simply added the writing role to my job title in the next January self-assessment. I originally registered as self-employed when I enrolled on my first proofreading course.) If you are an unpublished writer or a trainee proofreader I would strongly advise you to register as self-employed - you can then claim expenses and carry them over to the following tax year until (think positive!) you gain a self-employed income.
I have simply followed the tax advice in the annual WRITERS' & ARTISTS' YEARBOOK. Expenses can include laptops and computer software, courses, relevant books and DVDs (which both count as research), subscriptions, and postage. I keep a simple Excel 'Receipts' spreadsheet that I update as soon as I purchase things each tax year, and a more complicated Excel 'Tax' spreadsheet which I update every January (using a template) with a page for each tax year. My maths and spreadsheet skills are not very sophisticated - and this is made worse because one of my obsessive compulsive disorder (OCD) compulsions is counting (which began when I did A level maths, which I really struggled with). But I have managed to use Excel with the help of my partner.
The other reason I would advise unpublished writers and trainee proofreaders to register as self-employed is a psychological one. I subscribe to the Creativity Portal website's newsletter, which allows you to download a chapter from a book called 26 SIMPLE WAYS TO NURTURE YOUR CREATIVE LIFE (AN A TO Z LIST). Its top way is called "act as if":
[ITALICS:] What does "act as if" mean? Just what it says! Act as if you already are. It means trying a new role on for size, embracing a new mindset, and acting on your intention "to become" with reinforcing behaviors [...] And the payoff for this intentional role play comes when you realize your acting is no longer acting and you've rightly grown into the new role, becoming what you wanted to become.
Chris Dunmire, 26 SIMPLE WAYS TO NURTURE YOUR CREATIVE LIFE (AN A TO Z LIST)
In other words, if you take yourself seriously and act as a professional writer or proofreader then you are in the best mindset to actually become one. You can then approach literary agents, publishers, or potential clients with confidence in a professional manner.
Lastly, I would strongly recommend unpublished writers to read THE WRITERS' & ARTISTS' YEARBOOK GUIDE TO GETTING PUBLISHED: THE ESSENTIAL GUIDE FOR AUTHORS, by Harry Bingham. He is the founder of the Writers' Workshop. This book covers the whole publication process, including teaching you how to professionally present a manuscript for submission, write a synopsis, and approach literary agents. It is also very funny!
I hope this helps!
Best wishes,
Gemma
10 Comments
I have a vague recollection, but no idea where from, that it wasn't so simple if you were an employee and writing 'income' was a fraction of your wage - under those circumstances the tax people treat it as a hobby.
I'm far from sure on that so will be delighted if that's not the case in an academic sense - I once won a 'paint a play' game for a writing competition run by the National Gallery but more than 30 years later, it's the only 'income' from writing I've generated so far.
Mark, I think that would be true, perhaps, if you made a couple of hundred quid in a competition. But if it's a hobby then you can't put all the expenses through that Gemma's described.
You can certainly be both employed and self-employed (I am), and you run the self-employed half like any other business, calculating income and outgoings, profit and loss, and are taxed on your total income - i.e. the combination of the profit (if any) and your income from employment.
However, I am good at 'acting as if'!
Thanks again Gemma
Thanks for all your comments - I am sorry I am only just thanking you.
RE NOODLEDOODLE'S COMMENT:
You can correct any mistakes on your tax return by amending it, but the deadline is normally twelve months after the tax year's 31 January tax return deadline (e.g. for the 2010-2011 tax year you have until 31 January 2013 to make an amendment). After the twelve months it is too late to make an amendment, but you can write to HMRC to notify them of any mistakes you have made and you will normally get any tax you have overpaid back - however, the deadline is four years after the end of the tax year you are claiming for (e.g. for the 2007-2008 tax year you have until 05 April 2012 to make a claim).
RE STEVE'S COMMENT:
This is a good point about the psychology of going self-employed and I agree with him. I would advise unpublished writers to only register as self-employed if (1) they are serious about writing; and (2) they are confident that "acting as if" they are a professional writer will not demotivate them. I personally believe that if you take yourself seriously and act as a professional writer then you are in the best mindset to actually become one.
RE EMMAD'S COMMENTS:
Her first comment is an important point - yes, HMRC will eventually expect you to start showing some income and may ask questions if you do not do so after three years. I have just bought the Society of Author's yearly tax guide that she mentions - it is only £2, has really good advice, and they can send it to you via email. The HMRC website's self-assessment section also has good advice including what can count as expenses (e.g. your home telephone's line rental cannot count as an expense) - see www.hmrc.gov.uk/sa/.
If anyone has any more advice on registering as self-employed, do feel free to post comments here.
Thanks again everyone - it is nice to feel part of a writing community!
All the best,
Gemma
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