Knowing what Allowable Expenses you are entitled to claim as a writer can be confusing, but we have made it simple!
The amount of confusion and uncertainty that comes with working in the Entertainment Sector is inevitable. Transforming your hobby into a source of income is certainly a desirable idea, but the practicalities of it are far more complex than they appear.
Allowable Expenses for Writers:
- Agent Commission: Paying an agent to find you publishing deals
- Research: Travelling to locations in your book, interviewing people, reading other books, watching films etc.
- Editing and design costs: Costs you incur on professional editing and book cover design are all tax deductible
- Entertaining expenses: You can deduct 50% of entertaining as long as the primary purpose of the gathering is writing a book
- Professional subscriptions: Costs of subscriptions related to your writing. for example: Writers Guild of Great Britain, Society of Authors etc.
- Home as office: You can claim for use of your home as your office by using HMRC simplified rates depending on how many hours you work from home or you can claim using actual costs of your home (electricity, rent, Council Tax etc.) and calculating how many rooms you have in your house and how many you use for business.
- Routine expenses: Other expenses that are normally acceptable include: stationary, postage, computer expenses etc.
The Entertainment Sector can be a confusing area of work – especially if it is your full-time career. Knowing how to take control of your time and money while still adhering to HMRC rules can be a tedious task.
Written: 15 February 2021