UK soon to be published with a US ePub - tax help?

nkkingston · Apr 13, 2010

I've just been accepted by an ePublisher based in the US. Naturally, I'm thrilled! And a bit confused.

They've sent me some very nice instructions on how to fill in a W7 to get an ITIN to fill in a W-8BEN to send it to them. I've mostly got my head around the W7, though I'm not sure what kind of non-resident alien I am, tbh. Advice appreciated, though I think I've mostly got it.

What's really throwing me, though, is what to do from the UK end. What does being ePublished count as? All the advice I can find assumes I've moved to the US, at least briefly. For tax purposes, have I? Am I self employed? Am I paying US tax on any potential earnings, or UK? I've never declared my writing for tax purposes before, since I've made less than £50 so far, and those were all flat fees.

Anyone else in this position with an ePublisher? How does it work?

(if this isn't the best forum for this question, feel free to move it. I have no idea if it's the same or different for print publication)

Mr Flibble · Apr 13, 2010

What's really throwing me, though, is what to do from the UK end. What does being ePublished count as? All the advice I can find assumes I've moved to the US, at least briefly. For tax purposes, have I? Am I self employed? Am I paying US tax on any potential earnings, or UK?

You don't need to register as self employed (I don't think! I haven't) but will need to declare it as extra income on a self assessment tax return. To do that you should register.

Income from overseas

You must complete a tax return if you have any foreign income that's liable to UK tax.

I assume you're also paying PAYE?

Anyway, a quick call to the tax office will sort you out - they can also tell you if/ what you can claim as expenses etc ( I haven't bothered with that myself because there's nothing that I can truly put down as purely for my writing).

nkkingston · Apr 13, 2010

I assume you're also paying PAYE?

[strike]Nope, I'm currently in full time employment,[/strike] Oh, wait maybe. You'd think having grown up in a self-employed family I'd know better. Anyway, I haven't personally had to fill anything out in a while. I intend to stay in full time employment (as long as they let me, but that's a story for another forum), so I'm not sure how this all fits around each other. If I do end up back in part time plus again, no doubt it will be complicated further.

Last time I went to the tax office to ask a question they made me call someone else, from their phone! Not an enquiry centre, methinks.

veinglory · Apr 13, 2010

As I recall US and UK have a tax treaty. That means no tax will be withheld by the epublisher and no tax expected by the US government. So you should report your earnings in the UK and pay tax on them there.

nkkingston · Apr 13, 2010

Oh, interesing.

I've been getting taxable foreign income in excess of £300 per year

Click to expand...

So if it's less thatn £300 I don't declare it? Or does it fall under "I have been getting untaxed income that cannot be collected through my PAYE tax code"? At least I have almost a year to figure it out, thanks to the recent passing of the financial year!

btw, thanks so much for that link. Knowing which forms to fill in is 80% of the battle.

Mr Flibble · Apr 13, 2010

So hmm

What you should include as other income

You should include the following types of other income - but only if the total was more than £300:

income from your savings before tax is taken off

investments, such as company dividends

pensions

income from property

income from trusts, settlements and estates

foreign income

notional income, for example, where income is available to you but you have not taken it

So, yeah, if it's under £300 ( for all those things together, if you have any of the others. I wish

) you should be fine.

Shara · Apr 18, 2010

I am also a UK resident with a US epublisher. THe IT1N number means you don't have to pay US tax on your royalties, as you already pay UK on your earnings.

After much to-ing and fro-ing I found the easiest way to apply for an IT1N number was to pay a visit to the IRS office in London, which is in the American Embassy. I went armed with the W7 form, a copy of my publishing contract and my passport. The nice man there took a copy of my publishing contract (which was sufficient evidence as to why I need an IT1N number), a copy of my passport (for ID purposes), and took away the form. The IT1N number arrived in the post a couple of months later.

If you are anywhere near London this is by far the easiest way to do it, otherwise you either have to submit your passport with your application or get a certified copy, which is a palaver.

Shara

Darklite · Apr 18, 2010

Shara said:
After much to-ing and fro-ing I found the easiest way to apply for an IT1N number was to pay a visit to the IRS office in London, which is in the American Embassy. I went armed with the W7 form, a copy of my publishing contract and my passport. The nice man there took a copy of my publishing contract (which was sufficient evidence as to why I need an IT1N number), a copy of my passport (for ID purposes), and took away the form. The IT1N number arrived in the post a couple of months later.

Shara

That's interesting because I sent my contract off for evidence along with my passport and my request was refused based on the contract not being good enough. They need a letter from the witholding agent (publisher). It's a pain having to apply twice

nkkingston · Apr 19, 2010

I'm a couple of hours away from London, but it's not too bad for a short trip (I'm doing it this this weekend). I think I'd rather do it in person than trust the post with my passport, so I could try and make a day of it. The publisher did say they'd send a letter of confirmation on request, but I guess they need to receive my signed copy of the contract first.

This was probably a bad week to send it by air mail...

Darklite · Apr 19, 2010

Going in person is probably the ideal, although if you send your passport by special delivery (£5 charge) it is insured and the IRS will return it the same way for free within 3 days. If you do go in person make sure to check the opening times, I think they might be pretty restrictive.

UK soon to be published with a US ePub - tax help?

nkkingston

Bemused Girl

Mr Flibble

They've been very bad, Mr Flibble

nkkingston

Bemused Girl

veinglory

volitare nequeo

nkkingston

Bemused Girl

Mr Flibble

They've been very bad, Mr Flibble

Shara

Fix it in the Rewrite

Darklite

nkkingston

Bemused Girl

Darklite