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Thread: HMRC Sole-Trader setting up in the UK


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Permlink Replies: 8 - Pages: 1 - Last Post: Oct 8, 2017 6:49 AM Last Post By: Mrs Julia Evans
Mr Anthony Brum

Posts: 3
Registered: 08/15/17
HMRC Sole-Trader setting up in the UK
Posted: Aug 22, 2017 11:26 AM
 
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Hello,
I am trying to set up as a Sole Trader on the UK tax online pages.
It asks "Are you working for one person?" I have said Yes.
"Name of person?" I have said Kindle Direct Publishing.
"Address?" I am stuck here. I can't find what address I am supposed to enter. Can anyone help?
Mrs Julia Evans

Posts: 665
Registered: 05/22/16
Re: HMRC Sole-Trader setting up in the UK
Posted: Aug 22, 2017 11:31 AM   in response to: Mr Anthony Brum in response to: Mr Anthony Brum
 
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As an author you are not working for anyone, let alone Amazon. You are self-employed. You should probably read the HMRC guidance notes for self-employment on the .gov website. They contain pretty much everything you need to know. Best wishes. J
Joseph M Erhardt

Posts: 4,462
Registered: 12/21/15
Re: HMRC Sole-Trader setting up in the UK
Posted: Aug 22, 2017 11:55 AM   in response to: Mr Anthony Brum in response to: Mr Anthony Brum
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And to avoid the 30% tax withholding, be sure to use your Nation Insurance number as your tax ID when you do the Tax Interview page.
Mr Anthony Brum

Posts: 3
Registered: 08/15/17
Re: HMRC Sole-Trader setting up in the UK
Posted: Oct 7, 2017 2:51 PM   in response to: Mr Anthony Brum in response to: Mr Anthony Brum
 
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Thanks for the advice, all sorted now. Particularly helpful was the comment about my N.I. number as the tax reference.
Notjohn

Posts: 23,013
Registered: 02/27/13
Re: HMRC Sole-Trader setting up in the UK
Posted: Oct 8, 2017 2:50 AM   in response to: Mr Anthony Brum in response to: Mr Anthony Brum
 
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Your countrymen (countrypersons? people of country?) are best able to advise you on Her Majesty's tax laws, but as I understand US tax law, you are better off being an individual in the Amazon tax interview. Thus Joseph's advice is sound. You want the zero tax withholding so you never have to deal with the Internal Revenue Service.

(Don't trust KDP to publish a print edition. Don't trust CreateSpace to publish an ebook.)

Good luck! -- NJ

Notjohn's Guide to E-Book & Print Formatting

The blog:
http://notjohnkdp.blogspot.com
Joseph M Erhardt

Posts: 4,462
Registered: 12/21/15
Re: HMRC Sole-Trader setting up in the UK
Posted: Oct 8, 2017 5:25 AM   in response to: Notjohn in response to: Notjohn
 
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Notjohn wrote:
Your countrymen (countrypersons? people of country?) are best able to advise you on Her Majesty's tax laws, but as I understand US tax law, you are better off being an individual in the Amazon tax interview. Thus Joseph's advice is sound. You want the zero tax withholding so you never have to deal with the Internal Revenue Service.

Indeed. The horrid IRS has sent out no fewer than six arrest warrants for me this year alone. (They were kind enough to notify me of this via telephone.)
Mrs Julia Evans

Posts: 665
Registered: 05/22/16
Re: HMRC Sole-Trader setting up in the UK
Posted: Oct 8, 2017 5:49 AM   in response to: Joseph M Erhardt in response to: Joseph M Erhardt
 
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Only six? :)

My poor dad keeps getting calls from scammers claiming to be from HMRC, telling him the bailiffs are coming out. He's 80, bless him, but instead of getting flustered, he just asks them to call when they're on their way, so he can have the kettle on ready!

Joking aside, if any fellow Brits are trying to get themselves set up on the Amazon site, ready to publish their books, it's absolutely essential that they successfully complete the tax forms BEFORE they start earning any money.

Once you start getting paid, it becomes much more difficult to get any tax back that Amazon have already deducted. If it gets resolved early in the tax year, Amazon can (that's not to say they always do) resolve things by giving you back any tax that needn't have been deducted under the double taxation agreement.

Once the tax year ends, however, it's another story. Don't expect HMRC to give you credit for tax you've paid to the IRS. They won't. If you could have benefited from a double taxation agreement but didn't fill the forms in correctly, or they deem it was an 'error' by Amazon to withhold the tax, then HMRC are likely to point you back across the pond and tell you to claim the tax back from the IRS.

From what's been said by our American friends, and fellow Brits who've had the pleasure of contacting the IRS, they're not always the friendliest bunch of people.

Hope that helps. J
Joseph M Erhardt

Posts: 4,462
Registered: 12/21/15
Re: HMRC Sole-Trader setting up in the UK
Posted: Oct 8, 2017 6:30 AM   in response to: Mrs Julia Evans in response to: Mrs Julia Evans
 
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Mrs Julia Evans wrote:
Only six? :)

My poor dad keeps getting calls from scammers claiming to be from HMRC, telling him the bailiff's are coming out. He's 80, bless him, but instead of getting flustered, he just asks them to call when they're on their way, so he can have the kettle on ready!


Hah! Good for him!

From what's been said by our American friends, and fellow Brits who've had the pleasure of contacting the IRS, they're not always the friendliest bunch of people.

In defense of the IRS, in recent years they have suffered from understaffing, and I'll wager that too many IRS employees are exhausted and exasperated. Plus, they have to administrate a rat's-nest of laws and regulations. In my dealings with the IRS, they have been generally helpful, occasionally wrong (which in my case didn't actually have any tax consequence--just reporting consequence), but always polite.
Mrs Julia Evans

Posts: 665
Registered: 05/22/16
Re: HMRC Sole-Trader setting up in the UK
Posted: Oct 8, 2017 6:49 AM   in response to: Joseph M Erhardt in response to: Joseph M Erhardt
 
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Joseph M Erhardt wrote:
In defense of the IRS, in recent years they have suffered from understaffing, and I'll wager that too many IRS employees are exhausted and exasperated.

A sad state of affairs, duplicated in government offices the world over, it seems. Still, as a positive, 'polite' goes a long way.

J
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