Category: Publishing & the Book Trade
VAT rules to catch Amazon will incidentally crush small businesses
*If you’re checking back for updates and further links, I’m adding them to the end of this post so please scroll down*
Ah, the law of unintended consequences. You really would have thought legislators would know about that one. Apparently not. New VAT legislation to stop the likes of Amazon sneaking round their tax liabilities has a massive flaw. The turnover threshold is set at £0 which means small online retailers of ebooks and other digital products will have to compile VAT returns including details of the countries where each and every customer is based.
There’s more information at Cheryl Morgan’s website since unsurprisingly, this will make life for Wizard’s Tower Press untenable. Which will make earning any sort of income significantly harder for me and all of her other authors.
Just to give you some idea of how bad this is, Cheryl says –
The implications for any small company selling digital products are so horrendous that the Head of Tax at the Institute of Chartered Accountants (England & Wales) has apparently suggested that small businesses stop selling in Europe to avoid all of this mess. Except, how can you? The digital world is global by nature. The better-written platforms, such as Amazon, will at least allow you to block sales via their EU-based sites. However, there’s nothing to stop someone in, say, Finland, buying one of my books via Amazon US, or Amazon UK. If they did, I may be legally obliged to account for that, and Amazon’s systems don’t give me enough information to do that.
There is an online petition asking Vince Cable to maintain the existing VAT threshold, which will mean big companies who can afford the staff and systems to do the admin will pay a fair rate of tax while small business will still be able to trade and to grow without this dire limitation on how they can trade online.
There’s also a Twitter campaign today 25th November using the hashtags #VATMESS and #VATMOSS. If this concerns you, please help get this issue trending, to alert the government to the scale of the problem they’re about to create.
26th November – Edited to add links to some good articles I came across during yesterday’s Twitter campaign
How VATMOSS is the end of small enterprise in Britain – and how we can change it from Heather Burns, web design & ecommerce law expert.
A retired tax inspector’s verdict “badly thought out, badly explained, and badly handled”. from Wendy Bradley.
What is this VATMOSS mess? from the Satago Blog.
New EU VAT regulations could threaten micro-businesses from The Guardian.
Other things that came up as a result of Twitter exchanges –
No one, not even HMRC, has any idea how this will apply to crowdfunding such as Kickstarter.
Apparently HMRC talked to a ‘small business consultative group’ about all this to satisfy consultation requirements. No one seems to have any details about who was part of that group though.
This notion of sufficient consultation completely misses the point that most small and especially online businesses won’t actually belong to any professional or other organisations who might be expected to represent the reality of their trading models.
And as Cheryl Morgan has pointed out, the HMRC definition of ‘small business’ means an enterprise capable of providing a living for one or more people. This excludes vast numbers of ‘micro-businesses’ which are run from home, predominately online, as sidelines or to fund hobbies. For instance, a lot of people selling their knitting and embroidery patterns reckon they will be shut down by this.
Apparently HMRC reckoned 34,000 businesses would be affected. Estimates in the newspapers and elsewhere are around 350,000.
Those with experience of HMRC data handling and administration cannot believe they will be able to handle the new workload. Even at the lower estimate.
27th November
Knitwear designer Ysolda Teague attended a seminar about this yesterday, with a representative from HMRC present to answer questions. She reports back in her blogpost here, and also has further useful information. (If you’re a knitter, check out her patterns while you’re at her website!)
There is a Twitter Clinic scheduled by HMRC between 3:30 and 5pm today 27th November. (So slap in the middle of the school run for mums working from home and useless for anyone with a full time job who runs a digital side-business in the evenings and at weekends.) Direct your questions to @HMRCcustomers.
28th November
I’ve summarized the gleanings from that Twitter clinic in the post following this one.
Do also read the ‘Modest Proposal’ blogpost by a retired tax inspector, Wendy Bradley linked in the pingback in comments below.
Waterstones? Yes, I’m still watching…
Back in July, with the help of generous folk willing to spare their time surveying display tables, and analysing the promotional emails to loyalty card holders, I looked at the gender balance in the books Waterstones was promoting. As the last national chain bookseller in the UK, the picture they present to readers of what’s available and who’s writing it really matters.
Since then? The monthly ‘Books To Read’ email to loyalty card holders – Aug/Sep/Oct – has featured a total of twenty four books, sixteen by men and eight by women, so a two to one ratio. Books of the Month? Four by men, two by women, so once again, a two to one ratio. Backlist promotions? Two men to, er none. No women at all.
Well, that’s only a three month sample, so let’s really, really hope things improve over the rest of the year. Though I’m not hopeful unless and until the ‘Staff Picks’ and ‘What We’re Reading’ sections are restored to these emails. Those always used to help redress the balance but are currently suspended as part of a website/online presence redesign.
Other promotional emails? Two flagged up the latest half price offers on new titles, highlighting a total of eight titles by men and five by women plus a book by/with/about the pop group One Direction. One highlighted the Booker Prize shortlist – with four men and two women. Anne Rice got an email all to herself, flagging up her new novel for pre-order.
One flagged up Super Thursday when the publishing trade pushes its hoped-for Christmas bestsellers and featured nine books by men against three by women. Those by women were two focused on romance and relationships and one children’s book. Of the twelve in total, four were autobiographies, two of sportsmen, one comedian, one rock star, so that’s quite a skew in itself.
Add those numbers up and the overall ratio remains two to one in favour of men over women.
Any good news? Well, I was in my local branch and saw this display featuring five new SF&F titles by women writers, so that was cheering.
Mind you, Cheryl Morgan was at the Cheltenham Literature Festival and saw their SF&F table which featured one, count her, one female writer out of twenty two titles – at least until Margaret Atwood had done her signing and doubled the total. Sigh.
The thing is though, Waterstones can’t be held solely responsible. Not if they’re picking titles to tie in with the festival’s programme as is standard practise for such events. The Lit Fest had what sounds like an excellent panel on dystopias (do read Cheryl Morgan’s report here) with Jane Rogers, Ken Macleod and Christopher Priest (so maintaining that two to one ratio…). However the Celebration of Sci Fi and Fantasy event featured Ben Aaronovitch, Joe Abercrombie, Mitch Benn and David Barnett alongside Sarah Pinborough. Fine writers all and interesting, entertaining talkers as I can personally attest. But that’s really not going to do much to counter the prevailing – and incorrect – idea that SF&F writers are predominately men. Especially if neither Jane nor Sarah’s books were actually offered for sale.
Of course, that’s not just an issue for bookshops and literature festivals. In our local Cineworld cinema this past weekend, I picked up a leaflet and saw they’re now promoting forthcoming films as ‘girls’ night out’, ‘boys’ night out’, ‘date night’, ‘fun for the family’ selections rather than by genre. Yes, SF is firmly tagged for the boys. Sigh.
Here’s something else that’s new. When it comes to local bookselling, Waterstones are now the only game in town as far as West Oxfordshire is concerned. Redesign in our local WHSmith has seen their selection of paperbacks drop from two hundred titles to seventy five while Sainsbury’s locally seem to be getting out of books in any meaningful fashion. They’ve reorganised their layout and are now carrying a total of twenty paperbacks, compared to the seventy five they used to offer.
I’ve been saying for a while that one way for bookstores to compete with the supermarkets would be to offer a more diverse range of titles. If the supermarkets are getting out of bookselling now, what are the chances of that happening? While we wait to see, I’ll be very interested in reports of any other supermarkets cutting back on their range of books, if you’d care to take a look while you’re buying your groceries?
Links to some new books and to folk talking sense about the book trade.
I don’t often do link-round-up type posts but I think today’s a good day for one. I keep flagging up the issues of visibility for writers (all writers, male and female) so here’s a bit of signal boosting. Hopefully something for every taste.
Dark historical fantasy about medieval surgery? Try Elisha Magus by E C Ambrose.
Child of a Hidden Sea by Alyx Dellamonica. NPR Books discusses what happens when Fantasyland doesn’t want you…
Many fine writers continue to adapt and adopt new technologies to re-release their work. Check out Diana Pharaoh Francis’s re-release of The Cipher
J Kathleen Cheney’s Tales from the Golden City continue with The Seat of Magic
James A Hetley’s Stonefort Stories continue with Ghost Point at Book View Cafe – and if you’re not familiar with Book View Cafe, a writers’ co-operative, I strongly recommend you browse their splendid selection of books by excellent writers.
New from Joshua Palmatier (who also writes very fine books at Benjamin Tate) Shattering the Ley.
And lastly but by no means least, Mark Charan Newton’s Drakenfeld is now out in paperback. I asked him a few questions about what I found a thoroughly good read over at Fantasy Faction
Someone whose signal doesn’t need boosting is Hugh Howey. Honestly, he’s someone I ignore, and will continue to ignore until he stops making sweeping generalizations and insisting his view is The Only And Objective Truth when that is based on little or nothing more than his own personal and highly atypical experience.
Other folk are more generous with their time, pointing out the flaws and fallacies in his arguments, for the benefit of aspiring writers. I recommend you read
Brian McClellan on real publishing economics
Chuck Wendig on the idiocy of painting Amazon as an underdog.
Harry Connolly citing those articles and going on to add some good points of his own.
And since we’re here, a quick note that my new ebook Monster Hunters at Law is indeed now available via Amazon UK & US, Nook UK & US and Google Store Books.
Right, that should be plenty to keep you going while I crack on with the Work In Progress (which we’re not discussing in case that jinxes it) which is going really, really well…
Have a good weekend. I intend to.