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Thread: Tax No-Hoper


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Permlink Replies: 6 - Pages: 1 - Last Post: Aug 23, 2012 9:49 AM Last Post By: monkey2009
polostix

Posts: 13
Registered: 04/11/12
Tax No-Hoper
Posted: Jun 25, 2012 5:33 AM
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I'm a UK writer and am (hopefully) due my first cheque payment from US sales soon. I see in other threads people talking about a 30% tax deduction on such sales. Is this deduction made on the US or the UK side of things?

I'm not very good with understanding even basic tax stuff so I feel a little out of my depth here. If it is a US tax deduction, is there a way of claiming it back since I am not a US resident? Any help would be gratefully received.

Best,

Hannah
19penguin72

Posts: 17
Registered: 05/03/12
Re: Tax No-Hoper
Posted: Jun 25, 2012 7:21 AM   in response to: polostix in response to: polostix
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Hi Hannah,

Amazon do indeed withhold 30% of your royalties for the American IRS. You can stop this however by getting an American tax ID, and sending a form to Amazon.

It may seem confusing, so I wrote a blog post explaining the simple steps you need to take. You can find it here http://artisansoap.co.uk/blog/2012/05/kindle-ebooks-and-the-irs/
polostix

Posts: 13
Registered: 04/11/12
Re: Tax No-Hoper
Posted: Jun 25, 2012 8:02 AM   in response to: 19penguin72 in response to: 19penguin72
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Many thanks. How you've explained it on your blog looks straightforward enough. I notice on the IRS website it states that I should submit a W-7 form along with a valid income tax return.

Please excuse my complete ignorance but as a student I've never had to complete a tax return. I do have a P60 from last tax year however. Would this be acceptable? I've tried ringing up HMRC but apparently there's industrial action happening today so calls aren't being accepted!
19penguin72

Posts: 17
Registered: 05/03/12
Re: Tax No-Hoper
Posted: Jun 25, 2012 9:06 AM   in response to: polostix in response to: polostix
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The W7 form is for an Individual Tax Identification Number (ITIN), which is a pain in the backside to get by all accounts.

I went the easy way and got an Employer's Identification Number (EIN). Either is suitable for the W8BEN form you need to send to Amazon.

A non-American who doesn't live in the states can get an EIN as an individual sole trader - which is what you are. :-)
trev1604

Posts: 3
Registered: 08/21/12
Re: Tax No-Hoper
Posted: Aug 21, 2012 12:41 PM   in response to: 19penguin72 in response to: 19penguin72
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Hi,

I followed your advice and spoke to a very pleasant lady in the US who gave me my EIN number very quicky 98-XXXXXXXXX.

Am I possibly over-thinking the W-8BEN application I need to fill it in regarding the example which has a check against 9c [i]"The beneficial owner is not an individual..."[/i] when I am, but to all intents and purposes I'm a sole trader?

(Mind you, this could be all academic if nobody buys my book!)

Thanks
19penguin72

Posts: 17
Registered: 05/03/12
Re: Tax No-Hoper
Posted: Aug 22, 2012 4:16 AM   in response to: trev1604 in response to: trev1604
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Amazon have an example W8BEN on their help pages

https://kdp.amazon.com/self-publishing/help?topicId=A1VDYJ32T5D3U4

The link you want is near the bottom of the page.
monkey2009

Posts: 1,110
Registered: 06/03/12
Re: Tax No-Hoper
Posted: Aug 23, 2012 9:49 AM   in response to: 19penguin72 in response to: 19penguin72
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Or ring the IRS at the embassy in London. They can talk you through it. Prepare to stay on hold for a while.
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