Working with a publisher or an agent based in a different country to where you live or pay tax can be complicated. However good your relationship, there are practical and legal concerns which you will need to consider when signing a contract that is under a different legal jurisdiction. 

Before you sign, think carefully about whether a UK-based company or self-publishing might be better options.   Do you need an agent in another country, especially if the main market for your work is where you live?  

Sometimes there may be good reasons for signing up with an overseas company.  If you’re licensing your own foreign territorial or translation rights, you may need to deal with a US publisher or an agent based in a target territory. Translators are often commissioned by non-UK based publishers.

The core expertise of the advisory team is in our specialist knowledge of the UK publishing sector and most of the contracts we see are from UK-based members publishing in the UK.  The advice below is given in this context.  But if you’re an SoA member who lives abroad and has a UK publisher, or you live in the UK and publish overseas, then the general principles will still apply to you.  If you need more country-specific advice, we can often signpost you to resources from sister organisations such as the US Authors Guild. 

If you do sign a contract with an overseas publisher, there are three key factors to consider.

Foreign law

Every country has its own laws and legal procedures. Some countries have laws which override contractual terms. Ideally, seek advice from a foreign lawyer or the professional writers’ association in the country where the contract originates.  Within the UK, the law in Northern Ireland and in Scotland can differ from the legal system in England and Wales.

There can be specific issues with US contracts. Be wary of signing away your rights in a ‘work for hire contract’.  US bankruptcy laws are different from the UK and can offer very little protection.   Agency contracts often differ from the usual industry practice in the UK and some may even contain provision to take commission on future exploitation of as-yet unlicensed rights.  Contact the SoA for bespoke guidance before you sign.

Enforcement

Taking legal action if you are owed money or are seeking to terminate a contract outside your own legal jurisdiction is likely to be prohibitively expensive, where it’s even possible at all. Be aware that even if you can prove breach, foreign litigation is complex and expensive, so you may not be able to enforce any contract.

Receiving payments

When receiving payments from abroad, the originating country will deduct tax, and the default position is that you would also have to pay tax in the UK.  Relief from double taxation is usually provided through a Double-Taxation Agreement (DTA). The UK has DTAs with more than 100 countries (go to www.gov.uk/tax-foreign-income and search for ‘tax treaties’).  If there is no DTA in place, ‘unilateral relief’ (setting off against UK tax the sums withheld overseas) may be possible – but not if relief could have been claimed under a DTA.

You will usually be required to have the DTA form certified by HMRC. This can take an excruciatingly long time (it seems to be pot-luck depending on your tax office), which is doubly frustrating because many foreign publishers will not release payments until they have received the paperwork.

We understand that some foreign tax authorities will accept a ‘certificate of residence’ in certain circumstances – for example, if a small sum is involved – rather than a completed DTA form. Check with the foreign payer on a case-by-case basis.

US double-tax formalities can be particularly onerous and further guidance is available from the SoA on request.

Payments made from one country to another will incur bank charges (at one end of the transaction or the other).  That, along with the time involved in sorting out the double-tax paperwork, may mean you need to think carefully whether a commission which will result in payments to you of less than, say, £200 at any one time, is worth it.

Some SoA members find it helpful to use a financial app such as Revolut which enables you to send and receive money free of charge.   You may want to consider this if you regularly receive international payments.

Members can contact us for bespoke guidance on any of the issues raised here.  Our guide to receiving payment from overseas is available free of charge to members; please ask us if you would like a copy.  Members can also access a free tax helpline provided by specialist accountants H W Fisher.