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| Sheffield writer hit with tax bill for charity book | Sheffield writer hit with tax bill for charity book |
| (1 day later) | |
| Liam Kippax says he's paid £2,500 in tax on his book, despite all the earnings going to charity | Liam Kippax says he's paid £2,500 in tax on his book, despite all the earnings going to charity |
| A writer from Sheffield whose book has raised money for a cancer charity said he has been forced to pay tax on the "profits". | A writer from Sheffield whose book has raised money for a cancer charity said he has been forced to pay tax on the "profits". |
| Liam Kippax, 39, said the proceeds of sales of The Lady in the Bay Window went directly to Cavendish Cancer Care in memory of his mother, Sue Kippax, who chose it before dying from the disease. | Liam Kippax, 39, said the proceeds of sales of The Lady in the Bay Window went directly to Cavendish Cancer Care in memory of his mother, Sue Kippax, who chose it before dying from the disease. |
| HMRC has billed him around £2,500 in tax on the book, which he has had to pay from personal funds. | HMRC has billed him around £2,500 in tax on the book, which he has had to pay from personal funds. |
| Despite offers of reimbursement from the charity, Mr Kippax said he had promised his late mother that the organisation would be able to keep the money. | Despite offers of reimbursement from the charity, Mr Kippax said he had promised his late mother that the organisation would be able to keep the money. |
| Liam's mother, Sue Kippax, died from a rare form of breast cancer in 2023 | Liam's mother, Sue Kippax, died from a rare form of breast cancer in 2023 |
| First-time author Mr Kippax said his mother helped to write the book, which documents stories of paranormal activity at his home in Gleadless Townend, towards the end of her life. | First-time author Mr Kippax said his mother helped to write the book, which documents stories of paranormal activity at his home in Gleadless Townend, towards the end of her life. |
| "She was laid on the sofa, obviously struggling with her own demons, but she would give me a tricky word or phrase to help me," he said. | "She was laid on the sofa, obviously struggling with her own demons, but she would give me a tricky word or phrase to help me," he said. |
| She died with a rare form of breast cancer in May 2023, just months before the book was released in October that year. | She died with a rare form of breast cancer in May 2023, just months before the book was released in October that year. |
| He self-published the work on Amazon under a pseudonym, William C Grave, with all the money raised going to Cavendish, who had supported the family throughout his mother's illness. | He self-published the work on Amazon under a pseudonym, William C Grave, with all the money raised going to Cavendish, who had supported the family throughout his mother's illness. |
| He initially expected he might make around £2,500 from its publication, but it cleared that target within its first 24 hours. | He initially expected he might make around £2,500 from its publication, but it cleared that target within its first 24 hours. |
| Since then, it has sold more than 9,500 copies worldwide, as well as over 1,500 audiobooks, raising over £30,000 for the charity. | Since then, it has sold more than 9,500 copies worldwide, as well as over 1,500 audiobooks, raising over £30,000 for the charity. |
| He said his mother would be "over the moon" with their success. | He said his mother would be "over the moon" with their success. |
| The book has raised over £30,000 for Cavendish Cancer Care | The book has raised over £30,000 for Cavendish Cancer Care |
| However, Mr Kippax was then surprised to receive a letter from HMRC which said he would still need to pay tax on the profits from the book. | However, Mr Kippax was then surprised to receive a letter from HMRC which said he would still need to pay tax on the profits from the book. |
| He said attempts to appeal the bill have failed, even with the help of Sheffield Heeley MP Louise Haigh, who he contacted for support. | He said attempts to appeal the bill have failed, even with the help of Sheffield Heeley MP Louise Haigh, who he contacted for support. |
| After receiving several follow-up letters, he agreed to pay the £2,500 amount from his savings, which he had hoped to use to take his wife and 20-month-old son on holiday. | After receiving several follow-up letters, he agreed to pay the £2,500 amount from his savings, which he had hoped to use to take his wife and 20-month-old son on holiday. |
| He was also told he would have to continue to pay tax on the book's sales in future years. | He was also told he would have to continue to pay tax on the book's sales in future years. |
| Cavendish have offered to transfer the rights of the book back to him to help cover the costs - but Mr Kippax says that "doesn't sit well" with him. | Cavendish have offered to transfer the rights of the book back to him to help cover the costs - but Mr Kippax says that "doesn't sit well" with him. |
| "I promised them and promised my mum that the money would go there," he said. | "I promised them and promised my mum that the money would go there," he said. |
| HMRC confirmed the proceeds from the book were transferred directly to Cavendish Cancer Care, but pointed out that Mr Kippax had not permanently assigned the charity the book's rights. | |
| A spokesperson said: "Mr Kippax's accountant informed us that he did not transfer the rights of his book to Cavendish Cancer Care, and therefore the tax has been correctly charged." | |
| "We made his accountant aware of this prior to his Self Assessment being filed, advising that Mr Kippax could claim Gift Aid which he subsequently did." | |
| It said the funds raised by sales had been treated as income from self-employment, taxable at 40% due to Mr Kippax's status as a higher rate taxpayer, but the amount owed had been reduced by claiming Gift Aid on the donations. | |
| Listen to highlights from South Yorkshire on BBC Sounds, catch up with the latest episode of Look North or tell us a story you think we should be covering here. | Listen to highlights from South Yorkshire on BBC Sounds, catch up with the latest episode of Look North or tell us a story you think we should be covering here. |