My Book Published I Am On Benefits Is This Capital?

[DEV1L79]

Hi all,

I wrote a book last year and it was picked up by a publisher and was published in February of this year 2014 and has been doing pretty well, it is available worldwide. I run a Facebook page which went crazy popular and it has now got over 100,000 likes. It currently has about 125,000 likes. I was approached by a publisher to write a book on the subject of Wicca which I did.

I have been on benefits since being made redundant last March 2013. When my book was published I had a case worker who I saw regularly to help me get back into work and I asked her about the book and what I need to do and she said I shouldn't worry it is more a case of paying tax on it at the end of the year as long as my savings or earnings don't go past £6000. Well the book hasn't made £6000 yet I get a monthly payment from the publishers for royalties of the sales and e-book sales, it started out as about £600 but has now whittled down to about £200 a month for the physical book and the e-book versions. . I am also on a work program called A4E which everyone knows about the book I even took a signed copy in for one of the advisers as she was interested in Wicca. I have always been totally open about the book with both the dole and A4E. I often told the person signing me on I had a book and they would say 'Oh good for you I will look it up' and nothing more said.

I had a customer compliance interview with the benefits office and they asked to see my bank statements and other relevant information regarding the book which I showed them. The man interviewing me said they would regard the book as capital and didn't even take a photocopy of my bank statements just made a quick note of my earnings from the book.

Today when i went to sign there was a garbled letter in the book that said I must fill in a B7 form which is for people who are working part time and to declare any hours worked or pay. The man seemed confused and went to ask the person who put the letter in my signing book, which he says he 'thinks' that is what i need to do, then they couldn't work out what is was i needed to do so they sent me to another woman who then says I need to fill out a B16 for self employment and they have made an appointment for me for Monday.

I don't really want to sign or say I am working part time as i am not I am still available for work and am not working for any company, neither do I want to sign that I am self Employed as I am not I do not own a company or work for one I have owned.

No one seems to know including myself what is to be done in these circumstances. I have always been told that my book is capital and it can make up to at least £3000 before it affects my benefit. Can anyone help please??

[wales01man]

Re: My Book Published I Am On Benefits Is This Capital?

Would think its classed as income?

[des8]

Re: My Book Published I Am On Benefits Is This Capital?

IMO the book could be regarded as "capital" in that it is an asset.
When calculating benefits in general all capital has to be take into account unless it is regarded as income or disregarded.
It is up to the claimant to show it should be disregarded.
The rules on capital can be found in these two documents (the advice guide for decision making staff):
https://www.gov.uk/government/upload...ta/file/359959
https://www.gov.uk/government/upload...9959/admh1.pdf

Good luck wading your way through!:santa_cheesy:

[Sparkie1723]

Re: My Book Published I Am On Benefits Is This Capital?

IMO I think you can offset any sum they" say"/ "estimate" this book is worth........ with the many many hrs you spent writing it the cost of producing the finished article and with the cost of promoting it ........that is one way I would look into the issued involved if it comes to the crunch.

Remember I'm no legal person ...just my opinion for what its worth....which may turn out not be worth much
Sparkie

[MissFM]

Re: My Book Published I Am On Benefits Is This Capital?

Hi DEV1L 79 ,

Another opinion, FWIW!

If the publisher commissioned you to write the book, has a licence from you on the copyright and is paying you royalties on sales, then the money earned is income from self-employment.

Self-employment is just that - employment of yourself by yourself as an individual. Had you created a company or other trading entity then you would/could possibly not be self-employed but employed by that entity.

If, on the other hand, you commissioned a publisher to publish and market your book (and the unsold stock belongs to you) although also IMO this would still be a self-employed venture, there could possibly be an argument for the stock being "capital".

Another scenario would be that the publisher employed you and paid you wages to write the book. This is also ambiguous, depending on whether you were on the payroll (with them paying statutory contributions) or casual, etc..

The powers that be do find it hard to understand how artists operate and it's not that easy to tick their boxes.

It depends upon your contract with the publisher and how you present your accounts.

HTH x

[PAWS]

Re: My Book Published I Am On Benefits Is This Capital?

First of congratulations on getting a publisher to take on your work! I know how hard that is!
As the chaps said above you are classed as self-employed. If you have a multiple book deal or continuous contract with this publisher then you are one of the lucky ones and you will get an advance on future work as soon as you start to write it. Advances and royalties are classed as income. If this is a one off deal then your royalties are income. Watch your royalties like a hawk and keep a record of every penny because not only will your job seekers allowance be affected you need to prove what you earned because those lovely fellows at HMRC have been known to pick a sum out of the air and tell you that you owe them x amount and you actually have to prove that is not the case. Keep receipts for everything such as paper, ink cartridges and even the cost of posting manuscripts. Also keep any hard copies of telephone bills and even your electricity if you work from home–I kid you not! If your royalties suddenly go up you will get hammered for tax but you can deduct the VAT on your outgoings. Even if your royalties don’t go up keep EVERYTHING because this will make life easier if you do get an extortionate demand from the tax office.
What I would recommend is writing to agents. If you are already published you have a greater chance of an agency taking you on. Get a copy of the Writers and Artists hand book from Amazon and work through the agency listings. Find an agent who will continue to promote your published work (might even sell the rights to a film/documentary company) and they are also inclined to take care of the feudal stuff such as income tax. I am afraid that there is no getting away from the fact that you are earning money and whatever way you look at it your dole will be cut but hey, you should be over the moon as you have begun to climb the ladder so once again, congratulations!

[MissFM]

Re: My Book Published I Am On Benefits Is This Capital?

you will get hammered for tax but you can deduct the VAT on your outgoings.

Helpful advice as usual Paws - but I think the above only applies if you are VAT registered (happy to be corrected if wrong)

[FlamingParrot]

Re: My Book Published I Am On Benefits Is This Capital?

Helpful advice as usual Paws - but I think the above only applies if you are VAT registered (happy to be corrected if wrong)

You are correct, it only applies if you are registered for VAT, which you could do voluntarily even if you are below the compulsory threshold of £81k, as long as what you sell is not VAT exempt. Books are VAT exempt: https://www.gov.uk/rates-of-vat-on-d...and-newspapers

[PAWS]

Re: My Book Published I Am On Benefits Is This Capital?

Yep, but if you are self-employed and the royalties suddenly increase or she gets a translation or documentary deal then she will need to have her current tax year receipts for offsetting. Put it this way, they won’t take up too much room and could allow her to save a few quid.