Royalties - tax question

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
A client of mine has written a number of technical books which have been published and each year he receives Royalties. However, he wants to donate the royalties from his latest book to a charity in Sri Lanka . Basically the question is whether he should ask the publishers to remit them directly to the charity or can he safely receive the funds into his bank account to be passed on as a charitable donation? He is worried about having to pay a big chunk of income tax on these funds? What is the best way forward?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Royalties - tax question

    I am only guessing here but I would have thought that the amounts that he receives should be shown as income from Royalties (received gross). I would assume that what he chooses to do with it is irrelevant and should be treated as private drawings. I think that if he sends these donations directly to Sri Lanka he might be in trouble with HMRC.

    Does he know whether he could gift aid the amounts and at least extend his basic rate tax band to claim some relief?

    Perhaps a telephone call to the revenue would be a good idea.

    Can anyone else help

    Debbie

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