You see, many of these third parties are US-based, and unless you hold a US tax number, they automatically pay 30% of your earnings to the IRS. So my table from the last page should have looked like this:
|Book Price||Sold on||Fees||Gross||US Tax||Income|
Switching to a third party platform lowers my income to 22% of what it was – so less than one third. And then I have to pay income tax on this…
After protesting that 50% tax rate on people earning over £50,000 was unfair it seems very odd that the UK government wants me to pay 20% VAT (yes, Amazon charge the author not the customer) 30% to the US gov and then another 10% or 30% income tax.
The other problem with third party platforms? Since I switched the titles to Amazon and off the site, any sales have stopped dead. Quite literally, not a single book sold or free book downloaded. So, on the bright side, at least the income tax won’t be a problem.
Apparently the EU Parliament are very concerned – so concerned that they will do nothing about this until 2016, by which point it really will be a little late. My apologies to my readers.
EUVATACTION are working on it, and you can get the latest updates here: http://www.euvataction.org