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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5116
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have a small book publishing company, and pay royalties to

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I have a small book publishing company, and pay royalties to our authors (mostly uk) twice a year. I have not been deducting any withholding tax from the payments. Should I be?
Customer: replied 2 years ago.
Extra question, hope that is ok. Our most successful author is a norwegian crime writer whose work we get translated. Again I dont deduct tax from his royalties. Same question, but payments are to non uk resident. Thanks,
Customer: replied 2 years ago.
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Customer: replied 2 years ago.
Sorry, didn,t mean to press live phone call button! Happy with email response. Iain
Thank you for your question.You should be deducting tax at basic rate from the payment you make for royalties.HMRC manual SAIM9130 covers the topic Deduction of tax from annual payments of royalties and the link is here Payments made to a recipient of royalties who lives in a foreign country can receive royalties gross under Double taxation agreements. More information on this can be found here I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 2 years ago.
Thanks for that; how does the tax deducted get remitted to HMRC and what certificate needs to be given to the author?
Thank you for your reply.You should complete form R185 - Certificate of deduction of income tax .. the link is here As far as payment to HMRC is concerned, I must admit I don't know of the actual form. I would presume you write to your local tax office with a covering letter and a cheque for tax deducted as I have not seen a facility to make this payment online. I hope this is helpful. and other Tax Specialists are ready to help you
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