I’m a bit of a div when it comes to tax affairs and whatnot, having always been a PAYE employee.

I do a bit of photography, and registered with Getty Images some time back. It had all been quiet until a four figure sum landed in my bank account unexpectedly. It looks like one of my images has been picked up by an ad agency in San Francisco. I filled in the US Tax paperwork as requested by Getty when I registered with them, but now I’m wondering what I need to do with HMRC…

Any ideas?

well I’d just forget it. If you made a regular habit of picking up 4 figure sums, it would be another matter.

Well done on the photo, BTW.

blimey! good effort.

I suppose the thing would be to ask for / register for self-assessment, fill out SA form – under “Other Income” somewhere – and go through that – but you’d need to know how much tax was witheld at the US side, and you may end being SA registered for a while, so as above – let it quietly go (probably)..

or you could fill in a Tax Return every year for the rest of your life… at least you’d be secure in the knowledge that the income was declared and, where relevant, tax paid, and you wouldn’t go to jail for tax evasion. That’s how they got Al Capone you know 😯

I’ve sent a link to this thread to the HMRC enquiry desk in the next building and they will be in touch to answer your question shortly….

Hopefully they won’t pass it to the team in the building opposite who tend to leave the office early in the morning wearing stab vests and carrying door rams.

Well if you wanted to do it officially you would find out what if any tax has been deducted from your fee by Getty. You would then put that amount onto your UK tax return (you would have to file one in addition to your PAYE) and note that you had paid US tax. Whether any US tax would be offsetable against your UK tax liability (at your top/marginal rate) I couldn’t tell you. Not sure what the VAT position would be either. Can of worms really.

Nice work on the photo by the way – can we see it ?

Well, its clear you’re intent on doing it for profit, Tax return time

By the time you’ve knocked off any money you spend on cameras this year there won’t be much profit

and for the next couple of years, you can write off all the money you spend on cameras against your PAYE as losses from your photography career, and get some tax back on them too.

jambalaya – Member

Nice work on the photo by the way – can we see it ?

Yes but it’ll cost you a 4 figure sum

.0001

^ four figure sum

Cheers for the info folks.

I’ll see if I can dig it out and post it tonight.
Prepare to be outraged/underwhelmed. 😛

I don’t think it’s at all clear that the OP is doing it for profit. The chance of some modest payments (that in all probability will not pay for the equipment, let alone the addititional expenses incurred in taking all his photos) hardly makes him a professional. I’d suggest he keeps a careful note of the payments made, but only take futher action if it looks like it’s going to continue to generate a significant ongoing income.

However, I’m not a financial professional (far from it) and if anyone knows of amateur photographers being hassled by HMRC over the occasional payment for photos, I’d certainly be interested in hearing about it.

ninfan raises a good point. That’s not a new bike, its a prop for your next photoshoot…

More seriously; just keep a record of it. If you sell ten of them then HMRC might be interested (or indeed if the first of the four figures is a nine!), but as it stands I think that you’ve paid your tax at source. I have a good accountant I can ask if you want me to double check for you?

Oh and well done! Thought you’d not long sold the Leica?

Sold the Leica a while back, but I still have my trusty Canon 5D, although this was shot ages ago on my old 350D.

I know what you’re all thinking…is everyone off to rake out their cameras? 😉

Unexpected four figure sum = which new bike?

vorlich – Member

Sold the Leica a while back, but I still have my trusty Canon 5D, although this was shot ages ago on my old 350D.

Four figure sum for that?

😯

Four figure sum for that?

The client paid five figures. My cut was four.

cool image man, did you do much photoshop stuff to it or is that how it came out the camera?

Is it an advert for Malaysia Airlines?

did you do much photoshop stuff to it or is that how it came out the camera?

Just some global edits; levels, colour, etc. No cut/paste or composite stuff.

Can we play a guessing game?

Is it looking north to Carnoustie from somewhere like Kingsbarns?

Is it looking north to Carnoustie from somewhere like Kingsbarns?

I’ve been trying to remember myself, I think it’s closer to home, for you anyway. Either somewhere Hebridean, or possibly Dunnet Head.

EDIT: It is Dunnet.

Whether you’re trading is a judgement based on ‘badges of trade’. There a number of considerations aimed at deciding whether you are undertaking photography in a commercial way with a view to a profit. If yes then you will be liable to income tax and National Insurance Contributions if you earn over certain thresholds. Even if these thresholds aren’t met, you must inform HMRC within 6 months of the end of the tax year or you may be fined £100 for failure to notify. Registering as self-employed can be done by completing form CWF1 I think or online. Once registered, you will need to complete a self assessment tax return by the 31st January following each tax year.

You ought to have been keeping a track of your allowable expenses to date as these can be carried forward and set against any subsequent profits such as now.

HMRC will look at each case on its merits as they don’t want lots of hobby photographers with no prospect of a profit claiming to set off losses year on year against their other income.

This picture was quite lucrative too, I hear

I know what you’re all thinking…is everyone off to rake out their cameras?

If only you added a bit of greenery vorlich 😀