I have just spent some time working my way through the rules. I consider myself comparatively intelligent, I can read and understand quite difficult words. However I have just been having fun with working out the rules about tax for income earned in another country.
Let's start with the Smashwords account. Can I first mention that they are having a promotion all July with lots of books less expensive or free, so worth a look. Any purchase made from whichever part of the world, however, has the money landing squarely in California. They distribute to places like Kobo, Nook, iTunes etc who will sell from their stores to people all over the world. So someone in India could buy an ebook from Kobo who would send their cut to Smashwords - in California. Someone from Italy could by an ebook from iTunes and the money (or a percentage) would appear in California. My share will be paid out when it reaches $10, through paypal.
I don't have anything against California. It seems very nice and every person from there that I have actually spoken to is lovely. It is, however, in the USA. Any money earned in the USA will be paid to foreign nationals after a 30% withholding charge for their taxes. Fortunately the USA and the UK have a tax treaty (which I suspect has helped people like Starbucks) so that if I supply the right forms then I don't have the 30% deducted, I pay taxes on it here instead. Lovely, lovely Smashwords have written a guide to go through things, and it really helps.
I can fill in the form comparatively okay. I just need to enclose a passport, which I don't have. I could always include a full driving licence with an original birth certificate but I don't have a full driving licence either. I am now going to apply for a passport. While I may not be taking holidays abroad I am sure I will find lots of uses for a passport. I have scraped by so far without it, though, and it galls me a little to realise that I will be spending nearly £100 to claim $10.04 royalties.
That is, if they accept that my name is on every bit of identity except the book. I don't write under my own name. 'Lyssa Medana' only exists in relation to 'The Forgotten Village'. I am trying to think of a good covering letter.
I am also going to be filling in a self-assessment form later. The tax office are likely to snigger. I am not complaining, however, as if I just sell one book per year I will still be getting a few pennies and a huge thrill each time until I fade away, and it cost me nothing to publish. So while I have calmed down a bit while writing this, and although I will be stoking up the rage next as I try and work out the (&%^$*@ UK tax forms I am still so thrilled that enough people have paid for my stuff to make it necessary. Thank you.
And dealing with the forms helps me divert from darling uncle. He is likely to have an operation next week. He is, however, sounding a lot better.
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