3 quick and easy steps to registering for 0% US tax withholding for UK-based writers.
There are many really helpful articles about this on writers’ websites, but it can get confusing. I’ve gulped at stories of trips to the Embassy in London or parting with passports for weeks on end so I put it off, thinking my Amazon.com royalties would probably never reach the $100 threshold where they’d deduct 30% before sending me a cheque.
But that threshold was approaching and the whole complicating-sounding business was starting to worry me so I delved a bit and it turned out to be an extremely simple process. All that’s required is an EIN number and a W-8BEN form.
Regardless what you might have read, you don’t need an ITIN, or SSN. It is an EIN you want.
The whole process will only take a few minutes. Here’s what to do.
1.
Ring the IRS in America and ask for an EIN number for the W-8BEN form. You will speak to a real person. They will give you the number over the phone.
Call 001 267 941 1099 any time after 11.00am (British summer time) or 12.00 noon (winter time).
2.
Download, print off and fill in Form W-8BEN.
In Part I put your new EIN number in item 6) and cross the EIN box.
In Part II put a cross in a) and state United Kindom. Put a cross in b).
In item 10 write ‘zero’. After ‘specify type of income’ write author/writer. In ‘explain the reasons … ‘ write ‘British citizen & resident of the United Kingdom’.
Sign and date the form in both places where indicated in Part IV and write ‘self’ where it says ‘capacity in which acting’.
TAKE A COPY of the form for your own reference.
3.
Post the form to:
Amazon.com
c/o Vendor Maintenance
PO Box 80683
Seattle, WA 98108-0683
USA
I wrote a letter to enclose with the form:
Dear Amazon
Re: W-8BEN form for UK resident MY NAMEXXXXX selling books through KDP on Amazon.com (using author name PEN NAMEXXXXXXX)
I enclose a completed form W-8BEN which I understand you need so that my income from KDP / Amazon.com is not taxed in the US.
I understand that, once you are in possession of this form, I will receive all income from sales of my books on Amazon.com free from US tax deduction, ie gross.
Please confirm (email xxxxxx@btinternet.com) you have received this form and that all monies due to me will be paid without any tax deducted.
Thank you for your help.
Regards
MY NAMEXXXXX
British citizen and resident of the United Kingom.
No awards for best business letter ever written but it did the trick. My letter and form were dated 11 May. I received an acknowledgement by email on 30th May:
Whoopeeee! Simples.
NOTE to non UK residents:
I think the same process will work for residents of any country where a Tax Treaty exists between the US and that country.
Details here: http://www.unclefed.com/ForTaxProfs/Treaties/index.html
14 comments
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June 7, 2012 at 12:55 pm
Glynis Smy
I have my EIN number, but didn’t know I had to do the rest. Thanks for the info. I live in Cyprus, but am British. We have to follow the same as the UK.
July 7, 2012 at 12:54 pm
Ross Harrison
Now you have to fill in a W-8BEN and send a copy to everyone who sells your book. Amazon have an example of a completed W-8BEN in their help section.
July 7, 2012 at 1:34 pm
Silentnovelist
Hi Ross – does this mean you’ve had success? I hope so. Yes, you need to send a copy of the completed W-8BEN to every organisation that sells your books. For me at the moment that is only Amazon. Yes, Amazon’s help pages are a help to some extent, but again there is conflicting information about the W-8BEN form and how to complete it. Here’s the link to their help page: https://kdp.amazon.com/self-publishing/help?topicId=A1VDYJ32T5D3U4 . They say you need a TIN number, which you don’t. An EIN number is all that’s required, and can be obtained by phoning the IRS in the US, as explained in my blog post above.
July 7, 2012 at 1:56 pm
Ross Harrison
An EIN is a TIN isn’t it? I gather EINs and ITINs are the two kinds of TIN. Yes I had success, finally 🙂 Now I just need to post the W-8BEN.
July 7, 2012 at 3:32 pm
Silentnovelist
You might be right about the EIN being a TIN – don’t know, all these abbreviations are confusing. But glad it worked for you.
January 9, 2014 at 11:49 pm
bridget whelan
Haven’t done anything about it. Should do something and now that I’ve read your very helpful guide maybe I will….
January 10, 2014 at 12:02 am
silentnovelist
Glad it helped. It was a weight off my mind when I finally got round to it and found in the end it was so simple.
January 28, 2014 at 7:06 pm
Marion Gropen
TIN = Taxpayer Identification Number
EIN = Employer Identification Number (which means that you are some type of business, whether sole proprietorship, partnership, corporation, Limited Liability Company, aka LLC, or some other).
SSN = Social Security Number, which is an individual’s taxpayer id number
HTH (= Hope That Helps)
May 23, 2014 at 11:17 am
silentnovelist
IDH (= It Did Help). Thanks so much for bringing clarity into the sea of confusion!
January 30, 2014 at 10:41 pm
catherinelbyrne
This is very useful, thanks. I’ve had all sorts of conflicting advice from people about the W8BEN form.
May 23, 2014 at 11:17 am
silentnovelist
Really glad it helped.:)
May 22, 2014 at 4:22 pm
Sue Barnard
Thank you SO much for this. I’ve now got my EIN and have just completed the form reading to send to Amazon. I had no idea it could be done so simply.
May 22, 2014 at 4:23 pm
Sue Barnard
Sorry – that should have said “ready to send to Amazon.” Apologies. It’s been a LONG week!
May 23, 2014 at 11:15 am
silentnovelist
So glad it helped, Sue. Thank YOU so much for stopping by to let me know!