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Permlink Replies: 16 - Pages: 2 [ 1 2 | Next ] - Last Post: Jan 4, 2018 8:54 AM Last Post By: Notjohn
Andrew Leong

Posts: 12
Registered: 06/14/14
US Federal tax withheld (UK author)
Posted: Nov 19, 2017 5:55 AM
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Hello,

I'm a UK Author, but I noticed I pay "Federal tax" of 30%. I have filled out that I'm from the UK. I just want to make sure this is correct.
MR R J LAIDLER

Posts: 937
Registered: 09/26/16
Re: US Federal tax withheld (UK author)
Posted: Nov 19, 2017 6:26 AM   in response to: Andrew Leong in response to: Andrew Leong
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Did you give your UK tax reference when you registered with KDP? Too long ago for me to remember the details of how its done but as a UK based author you shouldn't pay US tax providing you've given the right details so Amazon know your earnings are going to be taxed here. Here being the UK of course. :)
Salamander Mall...

Posts: 867
Registered: 10/16/17
Re: US Federal tax withheld (UK author)
Posted: Nov 19, 2017 6:38 AM   in response to: Andrew Leong in response to: Andrew Leong
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Andrew Leong wrote:
Hello,

I'm a UK Author, but I noticed I pay "Federal tax" of 30%. I have filled out that I'm from the UK. I just want to make sure this is correct.


Put in your NHS number. The U.K. has a tax treaty with the U.S.
Joseph M Erhardt

Posts: 4,746
Registered: 12/21/15
Re: US Federal tax withheld (UK author)
Posted: Nov 19, 2017 6:40 AM   in response to: Andrew Leong in response to: Andrew Leong
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This should not be correct. The U.S. has a reciprocal tax treaty with the U.K. and your U.S. withholding should be zero. (Of course, you still pay to the Crown whatever it expects from your earnings.)

The usual ID number used for sole proprietors in the U.K. is the National Insurance No. If you're a sole prop (which most writers are) and do not have an LLC or PLC or Corp to publish your books, try the NI #.
Mrs Julia Evans

Posts: 892
Registered: 05/22/16
Re: US Federal tax withheld (UK author)
Posted: Nov 19, 2017 7:57 AM   in response to: Andrew Leong in response to: Andrew Leong
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Andrew Leong wrote:
Hello,
I'm a UK Author, but I noticed I pay "Federal tax" of 30%. I have filled out that I'm from the UK. I just want to make sure this is correct.

No Andrew, you shouldn't be having tax deducted. Go back into your account and complete the form again as soon as you can.

Where it asks for your UK identification, you can either use your NINO (national insurance number) or your UTR (unique taxpayer reference number) if you already have one.

Once a valid form is received by the 'Zon, they can correct it and give you back anything you shouldn't have paid, as long as the tax year hasn't ended. (For the US, that's to the end of December, unlike ours - hence the urgency.)

Once the tax year ends, you will have to go to the IRS to get a refund of any tax you shouldn't have paid.

Don't expect HMRC to repay you the tax that has been deducted, or even to give you credit for it. It's your responsibility to make sure you pay the right tax abroad, so where a double taxation agreement exists, and you don't take advantage of it, you're left fighting with the tax authority in the foreign country to get your money back.

In case the form asks (I can't remember if this one does) you're claiming under Article 12 - Royalties.

Hope that helps. J
Notjohn

Posts: 23,770
Registered: 02/27/13
Re: US Federal tax withheld (UK author)
Posted: Nov 19, 2017 8:32 AM   in response to: Andrew Leong in response to: Andrew Leong
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If you did not use your personal tax ID (usually your National Insurance number), you may have set up your account as a business entity, which might expose you to paying tax on US sales.

(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
Mrs Julia Evans

Posts: 892
Registered: 05/22/16
Re: US Federal tax withheld (UK author)
Posted: Nov 19, 2017 9:10 AM   in response to: Notjohn in response to: Notjohn
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Notjohn wrote:
If you did not use your personal tax ID (usually your National Insurance number), you may have set up your account as a business entity, which might expose you to paying tax on US sales.

For the purpose of the DTC (Double Taxation Convention), the term 'person' refers to companies as well, so as long as the company UTR (unique taxpayer reference) was used to demonstrate their 'residence' in the UK for tax purposes, there should be no difference between being a company or an individual. Both should qualify for relief, providing they meet the rest of the criteria.

Hope that helps. J
Andrew Leong

Posts: 12
Registered: 06/14/14
Re: US Federal tax withheld (UK author)
Posted: Nov 20, 2017 3:47 AM   in response to: Andrew Leong in response to: Andrew Leong
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Thank you everyone,

That's super frustrating as although I keep saying I'm UK based they've withhold about £500 the last two years. I'll try an get this back. Thank you for all your help.
tradingcases

Posts: 91
Registered: 01/25/12
Re: US Federal tax withheld (UK author)
Posted: Nov 20, 2017 5:16 AM   in response to: Andrew Leong in response to: Andrew Leong
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You have my deepest sympathy. As others here have said enter your NI number on the author tax questionnaire and no tax would be withheld. i know this to be true because I used to complete an nr1040 and other forms and even had a protracted correspondence withe the IRS over a ITIN number; since resolved as they now only require one photo id and other document (birth certificate). You do not now require an ITIN; notjohn has posted some very good advice on this issue. I have had some years refunded but not 2013 as they say lodged this too late - only because they refused my application for ITIN. I have had refunds for 2015 and 2016 but for some curious reason not 2014 because they say I owe them the amount I am claiming back. I have a lot of sympathy for the guys at IRS as they always tell me that they require an extra 45 days to investigate my claim - they are up to May 2017. They have tried to sequester my house but I managed to jump that hurdle. If you bring your details up to date you will not get tax withheld as from next payment date but for the rest of the year you might have to request a refund.

I have enjoyed my correspondence with the IRS - I even got to quote Jarndyce vs Jarndyce from Bleak House at them. So a little sliver of silver on the gathering of the dark clouds over Austin Texas.
Emily Veinglory

Posts: 3,575
Registered: 04/25/13
Re: US Federal tax withheld (UK author)
Posted: Nov 20, 2017 7:11 AM   in response to: Andrew Leong in response to: Andrew Leong
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All you need to do is enter your NI number to your tax profile. That money you have lost is gone, but don't give away any more.
Andrew Leong

Posts: 12
Registered: 06/14/14
Re: US Federal tax withheld (UK author)
Posted: Nov 21, 2017 11:37 AM   in response to: tradingcases in response to: tradingcases
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Sounds grim. Thank you for sharing that with us all. I'll let you know what happens.
Andrew Leong

Posts: 12
Registered: 06/14/14
Re: US Federal tax withheld (UK author)
Posted: Nov 21, 2017 11:38 AM   in response to: Emily Veinglory in response to: Emily Veinglory
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Thanks, Emily.

I'll get it back. I'm not one to be parted with my money. I'll let you know how I get on.
tradingcases

Posts: 91
Registered: 01/25/12
Re: US Federal tax withheld (UK author)
Posted: Nov 21, 2017 12:35 PM   in response to: Andrew Leong in response to: Andrew Leong
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Download the Forms 1042 which states the amount of tax paid for each year and then complete Form 1040NR for each year to claim back the tax. Forms 1040NR can be downloaded from IRS website for each year but you cannot claim anything after three years have elapsed. Your reference/identifying number is your NI number and you claim under England, Tax Treaty 12 on Page 5. Make sure you complete all pages. There are guidance notes for download as well. This is what I have done and have been refunded by US Dollar cheque which is fine but you then have to pay commission to Bank and hope exchange rate does not go against you. I have the bruises to prove that the system works - slowly!
wirdmonger

Posts: 1,124
Registered: 01/07/12
Re: US Federal tax withheld (UK author)
Posted: Nov 21, 2017 6:13 PM   in response to: Andrew Leong in response to: Andrew Leong
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The money has gone to the IRS. You get it back from them. It happened to me the first time I got paid, 30% down the toilet. The forms were incomprehensible and paying an accountant to sort it out could have cost me more. I just sucked it up and got the right details to Amazon and now they only take 3% (I am in New Zealand).
Notjohn

Posts: 23,770
Registered: 02/27/13
Re: US Federal tax withheld (UK author)
Posted: Nov 22, 2017 2:41 AM   in response to: wirdmonger in response to: wirdmonger
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The money has gone to the IRS. You get it back from them.

Few authors would find it worth the effort. Just getting a US tax ID is quite a challenge. You might be able to file by putting "Applied for" in the space, but even if you do everything right and get a rebate, it will be a USD paper check that may cost more to deposit than it is worth. That has happened to me with payments from the UK.

(Don't trust KDP to publish a print edition. Don't trust CreateSpace to publish an ebook. Each does one thing well and the other thing poorly.)

Good luck! -- NJ

Notjohn's Guide to E-Book & Print Formatting

The blog:
http://notjohnkdp.blogspot.com
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