Should UK Income Tax have been deducted from my royalties?
Cambridge University Press & Assessment conducted a thorough review of the UK's withholding tax rules during the implementation of a new royalties' management system. As a result, we no longer deduct UK Income Tax from UK tax resident professional authors, UK registered companies, and some UK charities. In this context, a professional author refers to the original creator of the copyright. Tax liability is determined on a product-by-product basis. Generally, if you created and own the copyright, your royalties will be paid without deduction of UK Income Tax. However, if you own the copyright as a beneficiary but did not create the work, UK tax may be deducted. If UK Income Tax deduction is required, it will be applied to royalty income for UK residents. For non-UK residents, tax will be deducted from royalties on sales in the UK only.
Please note that the information provided serves as a general guide and is based on a thorough review of the UK's withholding tax rules. However, the specific circumstances of each author may vary, and it is recommended to seek professional advice or consult with relevant tax authorities for individualised guidance.