E-books and self-employment

PanBerbelek

In April's Writing Magazine there was an article "Don't be taxed by accounts" and it got me thinking. I just finished my first book and I want to publish it via Kindle Publishing, and register as a publisher as well, to obtain ISBN. The article stated it is a good idea to register as self-employed before starting to actually make money from writing, as we can deduct from the tax all the expenses on research, etc. In my case it would be also a fee I'm paying to an editor.
I get a little confused, on HMRC form you need to put the date when you started a business, and that NI stuff.
Anybody did that already and could help me out?
Thanks a lot.

Phots Moll

The date you started the business is simply whatever date you decide to start it.

What about NI is confusing you?

PanBerbelek

The date, yes, but if I want to register now, about 2-3 months before publishing the book, to be able to deduct the costs of the whole publishing thing, I mean the editor, the ISBN cost, etc., should I put today's date or the date of realising the book, or registering as a publisher?

The NI thing is whether I should pay the Class 2 NI(I am already employed), or Class 4(it's hard to say what profits I will make from the book), or the other one which is calculated annually together with the tax?

Phots Moll

If you want to try to claim back costs then the business needs to start from when you first incur them. If you're about to start paying out then start the business now.

If you're already employed and don't expect to earn more than £5,000 a year from the writing, then you can apply for a low income exemption and, if it's granted, not pay any additional NI.

Phots Moll

Class 4 only applies over a certain amount of earnings, I believe. If you're liable for it, they'll calculate it and bill you.

Phots Moll

http://www.hmrc.gov.uk/working/intro/class4.htm

PanBerbelek

So, from what I see, if I apply for low income exemption but luckily form me I will earn more than that, HMRC will just send me a bill, right? THe'tre not gonna fine me or anything like that?

sallyj

I wouldn't expect them to fine you - as long as you tell them as soon as it looks like your earnings for the year are likely to go over the threshold.
By the way, to publish on Kindle you don't need to have an ISBN.

Phots Moll

That's what I think too.

If it looks as though yoyr earnings will be higher than expected, just let them know.

PanBerbelek

Thanks guys.
I know I don't need ISBN on Amazon, but on other platforms I might need it, so I better get them right off.
Thanks .