Help with one-off payment about to be received.

by **iknownothingabouttax** on Fri Jun 24, 2011 12:23 pm

Hi everyone.

I have written a screenplay which a US TV network wish to film. My agent tells me I shall receive a large one-off payment in excess of $200,000. I am not a professional writer and this is my one and only screenplay. At the moment, it is unlikely I shall be writing another. The script was written in the UK, and once sold, I will have no further income from it in the way of royalties. All the work on my side will have been undertaken in the UK, but sold to an American TV network. I will have no personal earnings in the tax year other than this.

Will I be liable to National Insurance on this one-off payment, and if so, should it be calculated on the basis of income received in one month or spread over the tax year?

Sorry if this is a silly question. I am a total tax virgin.

Appreciating your help in advance!!

by **collich** on Fri Jun 24, 2011 4:32 pm

Hello

A crucial question is whether you have assigned the rights to this screenplay. Or put another way - are you now barred from making a profit from the screenplay in the future?

by **pawncob** on Fri Jun 24, 2011 4:34 pm

Get an accountant. It WILL be worth it. There are provisions for authors which are very beneficial.

I don't think NICs are due as your income (weekly) over the period has been NIL. You may fall under NIC regime for the one pay period when you receive the funds.