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Sole Trader - Tax Return Questions

Newbie

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Hey guys,

 

I'm an independant solo game developer creating videogames for the PC. I develop games by myself and I sell the games on a distrubtion platform called "Steam", operating under as a sole trader. I am not part of a larger game development company. To this date, I've released one game that was released last year in June. I also have not taken on any commisions or freelance work from bigger companies, all of the generated income has come from the sale of this single game, during this (last) finacial year.

 

Question 1: Does the PSI apply to me? I had a read of an example scenario but the wording right at the end threw me off and I can't tell if PSI applies to me or not. I didn't take on any commisions from other people, all sales came from this single game that I released last year. So would you say more than 50% of my income came from the sale of goods?

 

Question 2: It took 3 years to develop the game and over the years, I had to purchase things like art assets and music for the game, I have all the invoices for these assets but they were spread out over the years rather than all being in the finacial year that my game was released within. For the purposes of claiming deductions, can all the invoices be included as expenses, or are only the expenses made during this finacial year factored in?

 

 

 

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Most helpful response

Former Community Support

Replies 0

Hi @Susama1 

 

Thanks for your reply. PSI can appear confusing hence why we direct to the tool Niamh posted. Generally though when you use our website and you identify something that clearly rules out your eligibility you have your answer and do not need to go further unless it directs you so. Alternatively when you perceive other complexities perhaps not detailed, we can offer free tailored technical assistance to help you.

 

All the best. It sounds like you have an exciting business opportunity ahead.

3 REPLIES 3

Former Community Support

Replies 2

Hi @Susama1,

 

Hope your day is going well.

 

Have you used our personal services income tool? It's designed to determine if you receive personal services income through questions you answer. You might find that helpful. From what you've said, it seems you may not be receiving PSI as your income has come from the sale of your game on Steam rather than any contracting or commissioned work.

 

With regards to your deductions, you can only claim for the financial year you made those expenses. If you feel like you have past deductions you need to claim, you can amend your old tax returns to correct the deductions.

 

Good luck with your game!

Newbie

Replies 1

Hey Niamh,

 

Thanks a lot for replying to my question, the deductions question is pretty much solved but I just wanted to follow up on the PSI question. So yup I have used the PSI tool and it said that it did not apply to me, my confusion came from when I then looked at the example scenario, the wording right at the end when it said the PSI did apply to her is what confused me.

 

So I just wanted to clarify, PSI does not apply if more than 50% of your income comes from the sale of goods right? My game on steam would be classified as "goods" even though I spent a lot of time developing it, it is different to if I personally recieved commissioned/contracted work for another game development company.

 

Since I did not do any contracted work during the financial year and all of my income came from the sales of this game alone, would you then say PSI does not apply to me?

Most helpful response

Former Community Support

Replies 0

Hi @Susama1 

 

Thanks for your reply. PSI can appear confusing hence why we direct to the tool Niamh posted. Generally though when you use our website and you identify something that clearly rules out your eligibility you have your answer and do not need to go further unless it directs you so. Alternatively when you perceive other complexities perhaps not detailed, we can offer free tailored technical assistance to help you.

 

All the best. It sounds like you have an exciting business opportunity ahead.