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Permlink Replies: 26 - Pages: 2 [ 1 2 | Next ] - Last Post: May 31, 2014 10:18 PM Last Post By: Paul Adams
daxxus386

Posts: 24
Registered: 09/14/11
UK authors IRS tax withholding
Posted: Apr 27, 2014 8:46 AM
 
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I'm considering going through the incomprehensibly tiresome and tedious rigmarole that would be involved in reclaiming the 30% tax that the IRS sees fit to withhold from non US authors.

Could any UK authors fill me in on whether or not HMRC gets involved in this at some point in the tortuous procedure? I ask only because it might be a good idea to know in advance what to expect, not because it would be relevant to my UK tax affairs/status. My ebook sales don't amount to enough to be taxable in the UK anyway, it's just that it stinks that the IRS gets to withhold these funds in the first place so I'd quite like to claim back what little I am owed.
davidwaine1

Posts: 961
Registered: 07/03/11
Re: UK authors IRS tax withholding
Posted: Apr 27, 2014 9:33 AM   in response to: daxxus386 in response to: daxxus386
 
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When you submit your EIN or ITIN to Amazon, they will no longer retain 30% of your royalties, but pay you everything. HMRC is not involved at this stage. They become involved when you submit your tax return. Remember payments from Amazon.co.uk must be declared as being earned in Britain, payments from anywhere else are foreign earnings. If you are set up to receive payments electronically, the reporting section should tell you exactly where everything came from.
Notjohn

Posts: 23,013
Registered: 02/27/13
Re: UK authors IRS tax withholding
Posted: Apr 27, 2014 1:00 PM   in response to: daxxus386 in response to: daxxus386
 
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it stinks that the IRS gets to withhold these funds in the first place

But it smells like roses that you can publish your book in the US, I suppose? It doesn't work like that. Baseball is an American game, so you play it by American rules, just as when I play cricket I play by English rules. If you don't like the rules, the solution is ready to hand: just play a different game.

Good luck! -- NJ

The book: Notjohn's Guide to Kindle Publishing: Ten Steps to Selling Your E-book on Amazon (Or Anywhere Else) (Third Edition)

The blog: Notjohn's KDP Guide
daxxus386

Posts: 24
Registered: 09/14/11
Re: UK authors IRS tax withholding
Posted: Apr 28, 2014 4:24 AM   in response to: daxxus386 in response to: daxxus386
 
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David Waine, thanks for the info it's been quite helpful.

NJ, how would US authors react if they were having funds withheld by EU/UK or other gov'ts/tax authorities against sales from these countries for no good reason?

You seem to be suggesting that the IRS is somehow in the right with this. Peculiar...
M.R. Brazear

Posts: 4,847
Registered: 07/18/13
Re: UK authors IRS tax withholding
Posted: Apr 28, 2014 5:44 AM   in response to: daxxus386 in response to: daxxus386
 
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daxxus386 wrote:
I'm considering going through the incomprehensibly tiresome and tedious rigmarole that would be involved in reclaiming the 30% tax that the IRS sees fit to withhold from non US authors.

Could any UK authors fill me in on whether or not HMRC gets involved in this at some point in the tortuous procedure? I ask only because it might be a good idea to know in advance what to expect, not because it would be relevant to my UK tax affairs/status. My ebook sales don't amount to enough to be taxable in the UK anyway, it's just that it stinks that the IRS gets to withhold these funds in the first place so I'd quite like to claim back what little I am owed.

What do you find incomprehensibly tiresome and tedious, not to mention torturous about a ten minute phone call to the USA? No HMRC do not get involved, it is between you and the IRS, nothing to do with them. You get your number from the nice lady in Cincinatti, type in into your tax information on Amazon, making quite sure that all details are identical to what you told the IRS on the phone, and a week later they stop taking 30%.

If you think that is so tedious, however do you manage to write a novel?
M.R. Brazear

Posts: 4,847
Registered: 07/18/13
Re: UK authors IRS tax withholding
Posted: Apr 28, 2014 5:48 AM   in response to: daxxus386 in response to: daxxus386
 
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daxxus386 wrote:
David Waine, thanks for the info it's been quite helpful.

NJ, how would US authors react if they were having funds withheld by EU/UK or other gov'ts/tax authorities against sales from these countries for no good reason?

You seem to be suggesting that the IRS is somehow in the right with this. Peculiar...

It is the way they do things and I'm afraid I felt the same when I started, mainly because Adsense don't withold 30% and that is also an American company so I didn't expect it. I expect Amazon Associates do as well, but I haven't got round to giving them my number yet as they don't do foreign payments by direct deposit so I have to wait for £100 to get a cheque.
Emily Veinglory

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Registered: 04/25/13
Re: UK authors IRS tax withholding
Posted: Apr 28, 2014 6:57 AM   in response to: Notjohn in response to: Notjohn
 
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I work for dozens of US companies and the only one to require foreign workers to get a tax number is Amazon. So it is not American rules, it is Amazon rules.
M.R. Brazear

Posts: 4,847
Registered: 07/18/13
Re: UK authors IRS tax withholding
Posted: Apr 28, 2014 7:13 AM   in response to: Emily Veinglory in response to: Emily Veinglory
 
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Emily Veinglory wrote:
I work for dozens of US companies and the only one to require foreign workers to get a tax number is Amazon. So it is not American rules, it is Amazon rules.
That explains why Google don't ask for one and I don't recall seeing it on Amazon Associates either.
Helen Gray

Posts: 40
Registered: 09/28/13
Re: UK authors IRS tax withholding
Posted: Apr 28, 2014 9:01 AM   in response to: daxxus386 in response to: daxxus386
 
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Would you all throw things at me if I ask what number do I phone to get a tax code? I'm not normally lazy, usually quite resourceful, but, you know, be nice if someone could just let me know.
M.R. Brazear

Posts: 4,847
Registered: 07/18/13
Re: UK authors IRS tax withholding
Posted: Apr 28, 2014 9:07 AM   in response to: Helen Gray in response to: Helen Gray
 
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Helen Gray wrote:
Would you all throw things at me if I ask what number do I phone to get a tax code? I'm not normally lazy, usually quite resourceful, but, you know, be nice if someone could just let me know.
Wouldn't dream of it. From the UK it's 001 267 941 1099 then you are given two options, one is just for EIN numbers. Phone about noon, which is their first thing and you won't have to wait.
Helen Gray

Posts: 40
Registered: 09/28/13
Re: UK authors IRS tax withholding
Posted: Apr 28, 2014 9:33 AM   in response to: M.R. Brazear in response to: M.R. Brazear
 
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Thank you!
deucalion

Posts: 42
Registered: 07/25/12
Re: UK authors IRS tax withholding
Posted: May 21, 2014 11:12 PM   in response to: Helen Gray in response to: Helen Gray
 
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I've just got my EIN and am trying to complete Form W-8BEN.

For anyone who has recently completed one, could I ask two questions?

Amazon ask for your Kindle Direct Publishing Account ID. Is that just my name? I couldn't see a number anywhere - but possibly I'm looking in the wrong place.

Also - are 'Notional Principal Contracts' relevant? I'm assuming I can skip that part of the Form, but wasn't sure.

I hate forms!

If anyone can help - thanks in advance!

James
villagoise

Posts: 3,082
Registered: 11/13/11
Re: UK authors IRS tax withholding
Posted: May 31, 2014 12:49 AM   in response to: deucalion in response to: deucalion
 
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Notjohn

Posts: 23,013
Registered: 02/27/13
Re: UK authors IRS tax withholding
Posted: May 31, 2014 3:32 AM   in response to: Emily Veinglory in response to: Emily Veinglory
 
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I work for dozens of US companies and the only one to require foreign workers to get a tax number is Amazon. So it is not American rules, it is Amazon rules.

Then either you or you companies are breaking the law. You can't get paid -- legally -- without a tax ID. You think Amazon is going to run up against the IRS, especially in the Age of Obama? Not a chance!

If you had ever run a company in the US, you would be astonished at the laws we comply with.

I think it's just hilarious that Brits, who live in an even more regulated society, find this burdensome. You don't like it? Don't publish here! Problem solved.

Good luck! -- NJ

The book: Notjohn's Guide to Kindle Publishing: Ten Steps to Selling Your E-book on Amazon (Or Anywhere Else) (Third Edition)

The blog: Notjohn's KDP Guide
Notjohn

Posts: 23,013
Registered: 02/27/13
Re: UK authors IRS tax withholding
Posted: May 31, 2014 3:33 AM   in response to: deucalion in response to: deucalion
 
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Your account number is found -- tah dah! -- by clicking on (Your) Account, top line of your Bookshelf.

Good luck! -- NJ

The book: Notjohn's Guide to Kindle Publishing: Ten Steps to Selling Your E-book on Amazon (Or Anywhere Else) (Third Edition)

The blog: Notjohn's KDP Guide
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