Money wise

Keep up to date with your finances, says Patrick Forsyth

While we may read of the huge sums some top authors earn, this is very much the exception. Surveys show that only about 10% of writers live exclusively on their writing earnings and that the average writer earns only around £10,000 per year (which means at least half earn less). If you, and I suspect most readers, have a portfolio career of which writing is a part, or if writing’s a hobby that pays out something on an occasional basis, it is still important to adopt the right attitude to your earnings. Some key issues include:

• Always ask, in advance, about fees and have a clear agreement; it’s difficult to raise this later

• Send invoices if necessary (chasing firmly but politely if payment is not received promptly).

• Keep clear records of all financial matters.

• Do some research (this links to the next point).

• Be prepared to negotiate, especially with regard to contracts and larger projects (and to do this you need to know something about current practice and going rates, hence research).

• Remuneration may not always be available in money. Perhaps you are prepared to write an article in return for, say, a free subscription to the magazine publishing it.

• If earnings are significant, always put a proportion away for tax to cover demands that will follow.

• Note all expenses that can be set against tax (and get professional advice if necessary). This sum can mount up and increase profit.

• Consider cash flow. If any regularity of income is important to you, then you may need to work back, taking action to prompt future earnings and thinking about timing.

This is just a snapshot, but may prompt thinking or action – maybe in this time of crisis you may have more time to review this sort of thing, indeed maybe doing so is overdue. Maybe too your choice of what to pitch should include thinking about the potential returns.