Hi all,
I was fortunate to have a backer for my book. This finance covered print and production costs. The aim was to print in 2014-2015 but we ended up going to print in the next financial year. Does anyone possibly know who I put this into my accounts, so I don't get heavily taxed in 2014-15 for something that was used in full the following financial year? I've been told of something called averaging, where you can spread a profit over two years, but this is different.
Any pointers would be much appreciated.
Best,
Roger
If you have a local HMRC office, go down and ask them. They'll probably try and refer you to a private accountant, but push as hard as you can for them to advise you (without being too pushy or rude). Point is, if you get it wrong, you can always fall back on the fact that you sought help from them, so any fault is partially theirs. This does not work as well by telephone or letter. Get the name of the person who interviews you.
Congratulations, Roger!
You may be able to offset costs against the financing of your book - an accountant would advise you best on that. HMRC are generally helpful, but it's complicated when it's income but tied to a product that is deferred. I'd get professional help.
HMCE have a section on the self-assessment form for 'artists', which includes writers, incomes where you can spread the liability. Presumably to cover large advances (ha, ha!)which must last the recipient some time.
Don't ask me how the nuts and bolts of it work because I've never used it but I don't see why it shouldn't be possible.