Tax and VAT

Tax

Will income tax be deducted from the royalties I get from selling my content on Tes Resources?

No. We don’t pay income tax on your behalf to any tax authority.

This is sometimes referred to as withholding tax, and there will be no withholding tax on your royalty payments from us. However, you may need to submit a tax return to the tax authorities in order to report and pay any income tax that may be due on your royalty payments.

For up to date government provided UK income tax information, please view the information here.

 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

Will I have to submit a UK tax return to declare my royalty income?

Yes, you may need to.

If you’re a UK taxpayer selling resources through Tes, you’ll need to submit a tax return.

If you haven’t received a notice to file a tax return from HMRC, you’ll need to register for self-assessment by 5 October following the end of the tax year.

The tax year runs from 6 April to 5 April each year (for example, 6 April 2016 to 5 April 2017 is referred to as Tax Year 16/17). In your self-assessment tax return (form SA100), you need to include how much you earned in royalties in that tax year.

You can complete a paper copy of your tax return or submit it online on the HMRC website. HMRC recommend doing the return online, as they do the tax calculations for you and on-screen help is available.

Remember, to file a tax return online, you need an HMRC Gateway account, which may take a few weeks to be set up, so make sure you allow enough time to do this and meet the filing deadline.

For up to date government provided UK income tax information, please view the information here.

 
The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

What are the deadlines and penalties for submitting a UK tax return

Paper tax returns must be submitted to HMRC by 31 October following the end of the tax year, so by 31 October 2017 for the 2016/17 tax year.

The deadline for online tax returns is 31 January following the end of the tax year, so by 31 January 2018 for the 2016/17 tax year.

If you don’t file your return by the above deadlines, you’ll receive a penalty of £100 (which increases the longer you do not file your return)

 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

Do I need to register with HMRC as self-employed to start selling my content on Tes Resources?

No, if you’re contributing to the site on a less than regular basis (which means you don’t regularly prepare and contribute resources to the site), you won’t be self-employed, but you will need to register for self-assessment using form SA1.

If you’re regularly spending time writing or modifying resources in order to make them more saleable, and you’re contributing these resources to the site on a regular basis, you may need to register with HMRC as self-employed (using form CWF1). You may also need to pay National Insurance Contributions (NICs). 

For up to date government provided UK income tax information, please view the information here.

 
The information contained in this section will help you think about the tax implications of selling you content on TES Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

How much income do I report?

If you are self-employed, you will have to pay tax on the trading income you have earned during an accounting period. Trading income refers to the royalties that have been paid into your bank from all resources sold during the accounting period. 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

Where do I include royalty income on my UK tax return?

Self-employed

If you are self-employed, you will need to use form SA100.

  • On page TR2, answer ‘yes’ in box 2 under the heading Self-employment’

You will also need to complete the form SA103s as follows:

  • Business income (page SES1): Enter your trading income in box 9
  • Allowable business expenses: Complete this section if you had any allowable expenses


Not self-employed


If you’re not regularly contributing to Tes Resources, include your royalty income as ‘miscellaneous’ income on your self-assessment.

  • Enter this in box 17 on page TR3 of form SA100 under ‘Other UK income not included on supplementary pages’

  • You’ll also need to enter your personal details and complete the UK tax return form SA100 to report other relevant income from the tax year. For example, report interest from your bank on page TR3 under ‘Income’

  • If you have a job, select ‘yes’ in box 1, ‘Employment’ and box 9, ‘Supplementary pages’, on page TR2 of form SA100, and complete form SA102 for each employment.

If you have any questions about the information you need to include on your tax return, you will need to seek professional advice.

 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

When do I need to pay any income tax?

If you need to pay income tax on your royalty income, it will be due by 31 January following the end of the tax year in which it was earned (ie, by 31 January 2018 for Tax Year 16/17). Late payment penalties may apply if the tax due for a particular year is not paid within 30 days of the payment deadline.

You might also have to pay advanced tax instalments (payments on account). These are due by 31 January of the tax year in question and by 31 July of that same year.
 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

What if I've opted to donate my royalties to charity?

Your basic rate income tax limit increases by the amount of your donation grossed up by 20%. This means that more of your income will be taxed at the basic rate of 20%, rather than at the higher rate of 40%. 


On your SA100 tax return form, enter the amount of the royalty payments donated to charity in box 5, ‘Gift Aid payments made in the year’, on page TR4.

 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.
 

Will I need to make National Insurance Contributions (NICs) if I sell my content through Tes Resources?

It will depend if you’re classed as self-employed or not. You may need to pay Class 2 and Class 4 NICs if you’re over 16 but below state pension age. 

If you’re already employed or self-employed and paying Class 1, 2 and 4 NICs, you might be able to claim some NICs money back if you end up paying more than the annual maximum for the year.  

You might also be able to defer payment of Class 2/4 NICs if you expect to pay more than the annual maximum.

If you’re unsure whether the NICs you’ve paid exceeds the annual maximum, or whether you’ll be able to defer paying NICs, we suggest you seek professional tax advice.

 

The information contained in this section will help you think about the tax implications of selling you content on TES Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

I am a US resident contributor. Will I have to declare my royalty income on my US tax return?

Yes, you'll need to report the royalty payments you earn each year on your annual federal (and state, if applicable) income tax return.

Factors to consider include whether you're contributing to the site and selling your resources on a regular basis and if your primary purpose is income or profit. We suggest you consult a tax professional to consider what is required based on your circumstances.

Please note that we will not issue you with form 1099 'Miscellaneous Income'. This is because Tes Education Resources Ltd is a UK resident company and royalty payments will be paid from the UK.

You can obtain information on your royalty earnings on your Author Dashboard. These figures include VAT charged on your royalties if you are VAT registered.
 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

Will I have to submit a tax return to declare my royalty income if I'm not a UK or US tax taxpayer?

You’ll probably need to declare your royalty income in your country of tax residence and it’s best to seek professional tax advice about this.

In Ireland, Germany and some other countries, you’ll need to complete an annual tax return if you’re not already doing so.

If you’re tax-resident in Malaysia, Australia, Thailand, India, Spain or the Netherlands you may already file a tax return with your tax authority. However, do include the royalty income you earn in this return.



The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances

VAT

What are my responsibilities with regards to VAT if I'm based in the UK?

VAT on UK sales and other sales taxes outside the UK are calculated and paid by Tes at the point of sale. If you are not VAT registered it is most likely that you do not need to concern yourself with VAT/sales tax calculations.

If you're based within the UK and VAT registered, it is your responsibility to issue a tax invoice to Tes Education Resources Limited for the royalty income paid to your bank account. You need to notify us if you are registered for VAT or become registered and if you deregister.

It is your responsibility to file your own VAT returns and pay the VAT due to HMRC.

To view the current government guidance around VAT registration, click here.

 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

What are my responsibilities with regards to VAT if I'm based outside of the UK?

To check your VAT compliance requirements in the country in which you are based we recommend that you consult a tax professional for advice about your own specific circumstances.

We will calculate the amount of royalties we owe you at the point of transaction and you will be paid the net amount upon withdrawal.

 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances

Does VAT apply to all contributors’ royalty earnings?

If you’re registered for VAT in the UK, VAT will be calculated on your gross royalty earnings (eg, if your royalties are £120, we’ll calculate that £20 of these earnings is VAT).

If you're not VAT registered in the UK, your royalty earnings will not include VAT. If you do become registered for VAT in the UK at a later date, it's your responsibility to let us know as soon as possible. It is also your responsibility to let us know if you deregister from VAT.

 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances.

I've bought content from Tes Resources. Will I be charged VAT?

The price of each resource is VAT inclusive however if you're an individual who lives in the EU or Australia this price will include VAT or GST respectively at the rates applicable in that country.

 

The information contained in this section will help you think about the tax implications of selling you content on Tes Resources. However, we are not tax advisors and recommend that you consult a tax professional to get more advice about your own specific circumstances