A Taxing Time for Writers…

I always thought that any money won from writing competitions wasn’t taxable – you too?

After all, lottery winnings aren’t taxed.

But, according to the Writers Bureau – and other sources that I’ve since checked, “if you earn enough to pay tax and you call yourself a ‘writer’ then you should declare what you win to H M Revenue and Customs. But the good news is, when you fill in your tax return you can claim competition entry fees as a legitimate expense to offset against your tax.”

H M Revenue & Customs have this to say on the matter:

“The prize money received is treated as a professional receipt as you entered the competitions of your own accord so should be included on your self employed schedule for this source of income. As the prize is taxable then the competition entry fees will be an allowable expense against such income.”

And if that hasn’t put you off, don’t forget there’s there’s still time to zap off an entry to the Bristol Short Story Prize, the Meridian Short Story competition and the Yellow Room Short Story competition.

All have closing dates of 31st March 2012 and accept on-line entries and payment. So you don’t have to worry about the pesky postal service!

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2 Responses to A Taxing Time for Writers…

  1. Don’t lottery winners enter of their own accord then?

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