April 24th, 2015

Can I claim creative averaging as a writer?

You’re a writer.

You may or may not have heard of creative averaging.

What is it? Does it apply to you?

If you’re an author you’re likely to have fluctuating profits.  Good years and bad years.

There is a tax relief that allows you to average your profits over two consecutive years, lowering your total tax paid as you can utilise unused basic rate band in the poor year.

Averaging will only benefit you if the top rate of tax in the two consecutive years is different.

For example:

Conditions for claiming:

Scriptwriters cannot claim as their income comes from the service of writing rather than from the works concerned.

Think this could apply to you?  Want to know more? Get in touch lford@jonathanford.co.uk

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Alison obtained a First class degree in Accountancy and Management at UCLAN University. She then went on to qualify as a certified accountant in 2006 and became a founder member in 2011.

Alison trained at a practice in Liverpool and, within her 10 years there, she developed as an accounts manager and obtained a varied portfolio of clients which has provided her with a range of experience in accounts, audit, VAT and taxation.
Alison specialises in giving sound jargon-free advice to a range of small and medium sized businesses.

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