HMRC under fire for charging cancer book charity author £2,5000 tax bill
A Sheffield author has been forced to pay £2,500 in personal tax on profits from his book to HM Revenue and Customs (HMRC) , despite all proceeds going directly to cancer charity.
Liam Kippax, 39, who wrote “The Lady in the Bay Window” in memory of his mother Sue, with sales raising over £30,000 for Cavendish Cancer Care, but this has drawn the attention of the tax authority.
HMRC has demanded the tax payment despite the charitable nature of the project, which Kippax has had to pay from his own savings.
The first-time author published the book under the pseudonym William C Grave, with all proceeds going to the charity that supported his family during his mother’s illness.
Kippax wrote the paranormal activity book with help from his mother during her final months at their home in Gleadless Townend.
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“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.
Sue Kippax died from a rare form of breast cancer in May 2023, just months before the book’s October release. Before her death, she personally selected Cavendish Cancer Care as the beneficiary of the book’s proceeds.
The book’s success far exceeded initial expectations, with her son’s £2,500 target reached within the first 24 hours of publication. The work has since sold more than 9,500 copies worldwide, alongside over 1,500 audiobooks. Total fundraising for Cavendish Cancer Care has surpassed £30,000.
Kippax said his mother would be “over the moon” with their success. Despite appeals and support from Sheffield Heeley MP Louise Haigh, HMRC has insisted he must pay tax on the book’s profits.
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The author has paid the £2,500 bill using savings originally intended for a holiday with his wife and 20-month-old son.
HMRC confirmed that while proceeds went directly to the charity, the funds were treated as self-employment income taxable at 40% due to Mr Kippax’s higher-rate taxpayer status.
He has been informed he must continue paying tax on future book sales. The tax office said it was reviewing his case and would contact him soon.
Cavendish Cancer Care has offered to transfer the book’s rights back to Mr Kippax to help with the tax burden. However, the author remains committed to his original promise, stating: “I promised them and promised my mum that the money would go there.”
HMRC noted that Kippax had not permanently assigned the charity the book’s rights. The tax office confirmed he had chosen to claim Gift Aid on the donations, which had reduced the amount owed.
Despite the financial challenges, Kippax maintains his dedication to ensuring all proceeds benefit the charity that supported his family.
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Recently, HMRC confirmed it is hiring 5,000 extra tax inspectors in a clampdown on small businesses and their owners, according to information disclosed to a committee of MPs.
The report, titled “HMRC Customer Service & Accounts”, broke down plans to target smaller firms to rake in £6.5billion in additional revenue for the Treasury.
Accountancy firm Price Bailey claims the the extra customer compliance staff assigned to small business compliance is equivalent to one additional tax inspector for every 1,000 small businesses in the UK.
In June, a report from HMRC found “The share of the tax gap attributed to small businesses has increased over the last 5 years, from 44 per cent of the overall tax gap in 2018 to 2019 to 60 per cent in 2022 to 2023.”
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