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Thread: UK help please - filling out Tax Information Interview


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Permlink Replies: 15 - Pages: 2 [ 1 2 | Next ] - Last Post: Oct 11, 2017 9:48 AM Last Post By: the_peartree
Fern Bailey

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Registered: 10/02/17
UK help please - filling out Tax Information Interview
Posted: Oct 2, 2017 9:44 AM
 
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Hi, could someone please advise me on what I need to enter in a box on page 2 of my Tax Information Interview? I'm redoing it as I messed it up on my first go :(

I'm already registered as self-employed and have a UTR. On page 1 I ticked the box stating I'm a permanent resident of the UK and that I have a foreign (non-U.S.) income tax identification number. I thought this might be a reference to my UTR or National Insurance number.

This now leads me to a box on page 2 to enter my Foreign (non-U.S.) income tax identification number (TIN).

I don't know whether I'm meant to enter my NI number or my UTR in this box, or something else (or maybe I'm on the wrong track altogether?)

I hope someone can help, and thanks very much in advance.
Joseph M Erhardt

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Re: UK help please - filling out Tax Information Interview
Posted: Oct 2, 2017 9:52 AM   in response to: Fern Bailey in response to: Fern Bailey
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If you're publishing as an individual, your NI number is what I've seen referenced here, as what to enter. If you're publishing as a company, say, "London Romances, LLC," then you'd use the tax ID number of that entity.

Most KDP writers are individuals, and from the UK they'd use their NI number. Just be sure any fiction you write is your own work and that it contains a good fiction disclaimer on the full title page (see what some of the trad publishers are using as a disclaimer, and work off that).

Best of luck.
Fern Bailey

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Registered: 10/02/17
Re: UK help please - filling out Tax Information Interview
Posted: Oct 2, 2017 10:13 AM   in response to: Joseph M Erhardt in response to: Joseph M Erhardt
 
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That's very helpful, thank you so much. Even though I've been self-employed for about two years now, taxes still terrify me haha. Thanks also for the other advice; I've bookmarked some articles giving examples of a copyright page so that's one of the next things on my list! I hope this thread will turn out to be helpful for anyone else in the same boat.
Notjohn

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Re: UK help please - filling out Tax Information Interview
Posted: Oct 3, 2017 3:12 AM   in response to: Fern Bailey in response to: Fern Bailey
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Be aware that US tax law is very different from the UK's. We don't have this business of filing as self-employed, which seems to me to be more like our estimated tax system, four payments during the year so we won't get fined at the end of all for underpaying.

You enter your National Insurance number UNLESS the tax authorities have assigned you a different one.

(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
Fern Bailey

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Registered: 10/02/17
Re: UK help please - filling out Tax Information Interview
Posted: Oct 4, 2017 2:50 PM   in response to: Notjohn in response to: Notjohn
 
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Oops, it looks like I'll have to redo the form and enter my UTR. Never mind, third time's the charm - I'll get there eventually. Thanks so much for your help!
the_peartree

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Re: UK help please - filling out Tax Information Interview
Posted: Oct 5, 2017 4:40 AM   in response to: Notjohn in response to: Notjohn
 
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Dear Fount-of-all-Knowledge, I'm now doing this for the second time but as it was three years ago, I've forgotten. So far everything has worked well, and I don't want to mess it up, as Ryanair say.

I do have an EIN (which is apparently the same as as the TIN), and I do pay tax in the UK - quite a lot...

So where I have to select one of the four options on page 2, do I select the third one, which is:

I have both a U.S. TIN and a foreign (non-U.S.) income tax identification number ?

And if they ask for my 'foreign income tax identification number', it's my National Insurance number? Even though HMRC have given their own number?
the_peartree

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Re: UK help please - filling out Tax Information Interview
Posted: Oct 5, 2017 12:36 PM   in response to: Fern Bailey in response to: Fern Bailey
 
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You are not alone. I first completed this, apparently successfully, in 2014 but something seems to have changed. Amazon's own detailed advice pages still do not make this clear or easy, and currently I'm at a loss as how to renew my application for taxes not to be withheld.

Following KDP's own links, I ended up on the IRS website where it is clearly stated that there is a treaty with the UK in these matters. Back to KDP's help page, we have this:

If you are a non-U.S. publisher interested in claiming tax treaty benefits to reduce your withholding, you will have to provide a tax identification number (TIN). If you have a U.S. TIN (ITIN for individuals, EIN for non-individuals), you must provide it. If you do not have a U.S. TIN and the tax authority in your country of residence issues an income tax identification number, you may enter it to claim treaty benefits.

HMRC issue various numbers related to an individual's income tax account, and nowhere is it stated which one will be acceptable to the IRS as a 'tax identification number'. Presumably, the National Insurance number would do for the HMRC to find the account but it would nice to know for sure.

Currently we seem to have some people using their UK NI number while others in exactly the same situation go through the process of applying for an American TIN. If I'm missing something, somebody please enlighten me - if I'm not, this is needlessly confusing!
Fern Bailey

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Registered: 10/02/17
Re: UK help please - filling out Tax Information Interview
Posted: Oct 5, 2017 1:28 PM   in response to: the_peartree in response to: the_peartree
 
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Hi Peartree, it was a pain but I managed to get it right the third time thanks to advice in this thread. From putting it together it seems that for UK residents, if you are:

a) Registered self-employed and will be publishing as an individual, not as a company = give your UTR

b) Publishing as an individual and not registered as self-employed (thus either in full or part-time employment or unemployed) = give your NI number

Both the NI number and UTR qualify as a "Foreign (non-U.S.) income tax identification number (TIN)."

Apologies if this sounds like a stupid question, but are you a British or US citizen? I ask because you said you have an EIN (which I assumed was for Americans only). The IRS says an EIN "is used to identify a business entity." So do you plan on publishing as a company?

The bit that I'm unclear on is whether your EIN will be relevant for KDP, or if you're meant to input it only if you plan on publishing as a company.

I think there are better odds of tracking down the Putney Pusher than figuring out US tax forms!

Update: Please take note of Julia's message below

Edited by: Fern Bailey on Oct 5, 2017 1:56 PM
Mrs Julia Evans

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Registered: 05/22/16
Re: UK help please - filling out Tax Information Interview
Posted: Oct 5, 2017 1:49 PM   in response to: the_peartree in response to: the_peartree
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Hi Peartree/Fern,

Just a FYI ( I didn't interrupt earlier as others were already helping out), but even if you do have an UTR, you can still use your NINO, as that's your identifier from cradle to grave, whereas you may only need your UTR for a few years for a specific reason.

Hope that helps. J
Fern Bailey

Posts: 26
Registered: 10/02/17
Re: UK help please - filling out Tax Information Interview
Posted: Oct 5, 2017 1:55 PM   in response to: Mrs Julia Evans in response to: Mrs Julia Evans
 
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Julia, that does help, immensely - thank you so much for your input :) And now I'm wondering a little whether I ought to go back and redo it again lol...
the_peartree

Posts: 988
Registered: 08/07/12
Re: UK help please - filling out Tax Information Interview
Posted: Oct 6, 2017 3:07 AM   in response to: Fern Bailey in response to: Fern Bailey
 
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Many thanks to Fern and Julia. There are some helpful comments and suggestions here, and I do hope that between us we have resolved it. I'm holding off completing the form until I get a response from KDP support on a couple of the points. Will let you know if they have anything useful to say.

I know from discussions in the past that many UK writers have gone through the 'getting an American TIN' process, me included; it almost beggars belief that they could have used their National Insurance number instead!

The EIN thing is a mystery. I never registered to publish as a company but that's the number I was given three years ago, instead of a TIN, or more properly, an ITIN! Since when, it has worked fine. I'm not sure how to handle this now!

The only warning note I would sound is that it can take IRS up to two months to check what we put into the system, not allowing for IT outages (!). It's conceivable that problems might not show up until then, even though the initial result of the form-filling says 'completed' or whatever.

Fingers and everything crossed, I guess.
Notjohn

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Re: UK help please - filling out Tax Information Interview
Posted: Oct 6, 2017 3:14 AM   in response to: the_peartree in response to: the_peartree
 
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It was about three years ago that the IRS stopped issuing EINs for this purpose. (They are really intended for paying people, not for being paid, when it comes to individuals.) Amazon then wrote software for using other-country tax IDs to determine the withholding rate. So it's probably Amazon that needs your home-country tax ID, to make the "interview" work.

Early on, there were probably only a few hundred publishers outside the US. Now there are tens of thousands, perhaps hundreds of thousands of such accounts.

(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
the_peartree

Posts: 988
Registered: 08/07/12
Re: UK help please - filling out Tax Information Interview
Posted: Oct 6, 2017 4:04 AM   in response to: Fern Bailey in response to: Fern Bailey
 
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Hello Fern, a short update. It rejected the EIN I've been using for the past 3 years but has accepted my HMRC UTR, and I appear (see above!) to have completed the process.

Thank you for your assistance!

Peartree.
Fern Bailey

Posts: 26
Registered: 10/02/17
Re: UK help please - filling out Tax Information Interview
Posted: Oct 6, 2017 4:28 AM   in response to: the_peartree in response to: the_peartree
 
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Peartree, that's fantastic news. I'm so glad you were able to get that sorted out. Fingers crossed it's smooth sailing from now on.

Up to two months to process though? That's shocking! I received confirmation from HMRC within a fortnight of submitting my last tax return. On the few occasions I've needed to speak to someone on the phone at HMRC as well, they've been very good.

By the way, this is very timely as I received a reminder this morning from my accountant's office about getting my Jan 2018 tax return completed, and since I'd be needing to talk to him now anyway, I had been intending to ask him about your EIN situation at the same time. I know I could have just checked with him in the first place about completing my own form as well, but I figured I'd try the forum first since someone would likely know.
the_peartree

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Registered: 08/07/12
Re: UK help please - filling out Tax Information Interview
Posted: Oct 6, 2017 6:41 AM   in response to: Notjohn in response to: Notjohn
 
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Thanks - the three years ago makes sense as far as my issue is concerned. Hopefully it is now resolved.

Thinking of offering my services to re-write the customer support pages!
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