Tax arrangements for book contract

[greyfriarskitty]

Hello, this is in the running for dullest question ever, but here goes.

I've signed a book contract (!) and it's of the usual form where 1/4 paid on signing, 1/4 of advance on delivery etc.

For tax, do I account for the money when it is paid rather than contract signing date? (I am used to being freelance and the invoice date rather than payment date being the key). Does this also apply to foreign sales, which is one payment (but signature date is in one tax year, payment date in the next).

Or is there any useful resource which could help me. I have an accountant, but I think they may be out of their depth.

tia.

The Society of Authors may be able to help you. There is also something known as averaging that authors can use to spread their advances over a couple of tax years. Not sure how you account for advances as mine have always been paid within one tax year.

You might find this useful:
https://www.hwfisher.co.uk/it-taxes-the-brain-faqs-from-authors/

I account all payments when paid not when contracted.

Also, if you get a large up front advance you can spread it over leaner years should there be any.

Absolutely you account only when paid - the contract could be breached by either party

sorry, got completely caught up in the end of term and forgot that I hadn't replied.

That's all very helpful, thank you. I had come across averaging, but suspect that it may fry the brains of our rather small local accountant.

My advance is in four parts (signature, delivery, hardback, paperback) and so will spread over two tax years.