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another tax question

another tax question

Old Aug 5th 2011, 7:00 am
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Default another tax question

So I recently wrote a Book
Then amazingly i sold this book and future books in a matter of weeks to some of the biggest publishers in the business
All very happy and exciting and loads of $$$$ alot more than you would think for a book but am not complaining.
Will do the shamless self publicity when it gets released next year

anyway

As the royalties and advances are such large sums we were wondering where would we pay less tax, here or in the UK. At the moment we still havent got PR (as its lost in the black hole of paperwork that is CIC) so is it worth continuing with .

But the end of the day its all about money and was wondering who has the better tax laws re artists and royalties and taxes no one seems to have a clue about that kinda thing here (seems hard enough to just find out about the canadian laws.)

So was hoping an accountant or tax person here who may know a little about both could help.

Thank you.
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Old Aug 5th 2011, 7:10 am
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Default Re: another tax question

Originally Posted by kirstya
So I recently wrote a Book
Then amazingly i sold this book and future books in a matter of weeks to some of the biggest publishers in the business
All very happy and exciting and loads of $$$$ alot more than you would think for a book but am not complaining.
Will do the shamless self publicity when it gets released next year

anyway

As the royalties and advances are such large sums we were wondering where would we pay less tax, here or in the UK. At the moment we still havent got PR (as its lost in the black hole of paperwork that is CIC) so is it worth continuing with .

But the end of the day its all about money and was wondering who has the better tax laws re artists and royalties and taxes no one seems to have a clue about that kinda thing here (seems hard enough to just find out about the canadian laws.)

So was hoping an accountant or tax person here who may know a little about both could help.

Thank you.
Income is income. In your case I don't believe it will matter how it was earned, just that it was. You need to look at the marginal tax rates in whatever jurisdiction to decide to live.
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Old Aug 5th 2011, 7:57 am
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Default Re: another tax question

Originally Posted by kirstya
So I recently wrote a Book
Then amazingly i sold this book and future books in a matter of weeks to some of the biggest publishers in the business
All very happy and exciting and loads of $$$$ alot more than you would think for a book but am not complaining.
Will do the shamless self publicity when it gets released next year

anyway

As the royalties and advances are such large sums we were wondering where would we pay less tax, here or in the UK. At the moment we still havent got PR (as its lost in the black hole of paperwork that is CIC) so is it worth continuing with .

But the end of the day its all about money and was wondering who has the better tax laws re artists and royalties and taxes no one seems to have a clue about that kinda thing here (seems hard enough to just find out about the canadian laws.)

So was hoping an accountant or tax person here who may know a little about both could help.

Thank you.
You don't get to pick, if you are tax resident in Canada you have to report it in Canada. If you do end up paying tax in the UK, you need proof of the tax paid, report it in Canada as foreign tax paid and get to the pay difference to CRA if there is any extra to pay. From previous posts it seems you are tax resident and have already had a run in with CRA, so be sure to get it right.

If it is that much money, spend some on an accountant. KPMG or BDO should be able to help. If it is a large sum, the cost of an accountant will pale to the cost of getting it wrong.

Last edited by Aviator; Aug 5th 2011 at 8:00 am.
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Old Aug 5th 2011, 8:02 am
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Default Re: another tax question

It is going to depend on the amounts involved. If it is over £150,000 a year then Canada is cheaper. Less than this the UK will likely be lower tax in the majority (not all) of cases but not so much of a difference that I would consider returning for.
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Old Aug 5th 2011, 9:26 am
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Default Re: another tax question

sorry guess i didnt explain too well

its way over 150,000 just with the UK publisher and before I even sell a copy then there is the USA and Canada deals

anyway try to explain a little better,

Some countries pay different rates with money earnt through the arts as it were, look at U2 and they pay there tax on royalties in the Netherlands i think it is. So they pay far less than if they were to pay it in Ireland.
We are not talking to that extreme, and we are currently paying an accountant to look at the Canadian options , but they havent a clue about the UK options. We could move back to the UK tomorrow as it were if we were to pay far less tax, if the difference is only minimal it doesnt matter but if we taking a 10% + difference its got to be something worth considering.

We would only pay Tax in our country of residence.

hope thats now a little clearer
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Old Aug 5th 2011, 9:30 am
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Default Re: another tax question

OK - I know nothing about tax but would like to know what your book is about.

Maybe I could write one if I would get paid that sort of money!!

Congrats anyway - that's a real achievement...
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Old Aug 5th 2011, 10:15 am
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Default Re: another tax question

Originally Posted by kirstya
its way over 150,000 just with the UK publisher and before I even sell a copy then there is the USA and Canada deals
Then with all due respect you should get the appropriate professional advice (in all countries). There are things you can do to defer and mitigate the tax on this income but a lot depends on your personal circumstances and objectives. The Aviator mentioned KPMG or BDO. They are not cheap but they are the level of firm you need to engage.

You might also want to consider that the current top marginal tax rate in the UK is 50%, and the top marginal rate in BC is 43.7%. 6.3% of a lot is still quite a lot.
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Old Aug 5th 2011, 12:06 pm
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Default Re: another tax question

Originally Posted by Geordie Lass
Congrats anyway - that's a real achievement...
+1
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Old Aug 5th 2011, 3:30 pm
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Default Re: another tax question

Originally Posted by JonboyE

You might also want to consider that the current top marginal tax rate in the UK is 50%, and the top marginal rate in BC is 43.7%. 6.3% of a lot is still quite a lot.
This is the kinda info was after

as for the book thanks for the congrats cant go into too much detail at the moment
but its looking like a late spring release (apparently its a good book to read on the beach or take on your hols) And will have all the publicity tours to go with it including 2 weeks in New York which am really excited for.

I will give all the shamless self publicity nearer the time and you can all come down for your signed copys.
Just right now we are seeing whats best for life in general, seems as living in the arse end of nowhere BC isnt the best for a literay proffesion.
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Old Aug 5th 2011, 3:46 pm
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Default Re: another tax question

Originally Posted by kirstya
best for a literay proffesion.
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Old Aug 5th 2011, 9:30 pm
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Default Re: another tax question

Live where you want to live, I've never understood tax expats trooping to places for marginal tax benefits.

Congrats on the book deal BTW.
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Old Aug 6th 2011, 4:41 am
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Default Re: another tax question

I think if you earn 70k plus on royalties in the UK and this is additional to any other income you earn reported through PAYE then you need to be VAT registered too, at least this was the case with one of my best-selling authors. May not apply to you but thought I'd mention anyway.
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Old Aug 6th 2011, 5:21 am
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Default Re: another tax question

Originally Posted by The Aviator
Yes, it does make one wonder.
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Old Aug 6th 2011, 5:41 am
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Default Re: another tax question

Originally Posted by Auld Yin
Yes, it does make one wonder.
Don't be churlish. Getting published can be difficult; getting a multi-country publishing deal is very impressive. I take my hat off to the OP myself - well I would if I wore one.
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Old Aug 6th 2011, 2:54 pm
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Default Re: another tax question

Well this is what they pay editors for to check my spellings and other nonsense including using to many Canadian words. Cant use sidewalk and cell phone in a book based in London with British characters, I didnt even know I had used so many until it was pointed out.

Anyway back to Tax looks like I become a business , just begrudge paying so much tax.

Still waiting on my 6k back from the CRA audit, they messed up the release forms so it takes even longer

Sorry cant talk to much about the book as of yet, it hasnt even got a name, can write 120,000 word book but cant think of a bloody name.
But will reveal all nearer the time.
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