UK Amazon Kindle Forum discussion
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Dealing with amazon.com and the IRS - Authors!!
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Alexandra wrote: "Thanks, this is useful. I got the letter with the number they give you stating I am self employed, and now I have a letter saying I have 3 months to do a tax return.I haven't earned all that much so I doubt I will end up paying ooddles of tax on it. Just a question- I have a day job on which, of course I pay tax deducted from my salary I assume I don't have to state this as this does not relate to the second income?.."
Sorry Alexandra but a Tax Return is for all your income, and you should include your employment earnings as well.
Geoff (G. Robbins) (The noisy passionfruit) wrote: "Your PAYE tax will already be calculated, because that is the responsibility of your employer. The key with self employment is to hold on to everything. buy yourself a file from the local stati..."
No, Dopey.
You've dumped really important info into an existing thread. :)
Jay-me (Janet) ~plum chutney is best~ wrote: "Alexandra wrote: "Thanks, this is useful. I got the letter with the number they give you stating I am self employed, and now I have a letter saying I have 3 months to do a tax return.I haven't ea..."
Boo, well I have 3 months so will look at it after Christmas:)
Assuming you write at home, Alexandra, don't forgot to add a 'use of home' sum to cover your general overheads of heating, lighting and insurance. I have to have the heating on for most of the year if I'm working at home (even during the summer thanks to the British weather) as I have Reynaud's syndrome - my fingers turn numb,white and deadlooking if they get chilled. Not good if you are trying to write or type!
Well I have a main job so I am not sure I can really. We would have the lights on anyway. Reynauds sucks, I have suspected carpel tunnel and I can't write on the desktop as it sets my bad back off. I can just about manage at work with my fancy mouse and fancy chair but no chance at home. The lap top I can move around more.
Sounds painful Alexandra. Just goes to show how determined you have to be to get any writing done!
yes. I tend to use a laptop but if my hands are tingling and sore it is hard.:(
I have just read the following quote from Sir Terry Pratchett:The author John Brunner once told me: “Remember nearly everything you are using to write a book is tax deductible.”
Alexandra, Just because you work and write, does not make your tax deductions for writing any less valid. You should buy yourself the same mouse and chair that you use in your other work and deduct it.
After putting it off for ages, I finally got around to stopping the tax withholding on my US sales. What has really surprised me is how quick and easy it was - mind you, if I'd done this when I started out in 2011, I would have gone the ITIN route and from what others have said, I'm sure that would have been a nightmare - which is one of the reasons I'd been putting it off. Then I read about the EIN route and managed to get one in a single phone call over the phone. I expected to have to wait months for Amazon to get back to me, but I got an email yesterday stating that my tax withholding was now set to 0%, and that was just two weeks after I sent my W8-BEN form in!Another reason I'd put off doing this was because I thought I could get withheld tax back, but I've read recently that that's all changed. Has anyone had their withheld tax returned to them recently? I've also heard that I can offset it against my tax payments in the UK, so it might be as broad as it is long in the end. Still, I'm glad it's all sorted now for future payments.
Geoff (G. Robbins) (The noisy passionfruit) wrote: "Well, I've filled in the W7 form and they are asking for proof of identification. Unfortunately, Sophie doesn't have any of the ones they are asking for. She has a driving licence, but only provi..."I had the same problem. I don't have photo ID- the woman at the Irs said..well get some. Cheers that is HELPFUL not.
Anyway after a blazing row with the IRS about why the heck they needed Photo ID for someone they will never meet who lives thosands of miles away I gave up pursuing that route. Now if you apply for and EIN you can do it over the phone (although find SS4 form on the IRS website and you don't need ID. Technically you do need an ITIN as I was told by the IRS but apparently they will accept and EIN as well. ITIN is for individuals and EIN is for companies AND individuals.
Why you can apply without ID for 1 and not the other is anyone's guess.
There was a link on the European Writers forum and a link to a helpful site which I have posted here
http://catherineryanhoward.com/2012/0...
Link to post on European forum.
http://www.goodreads.com/topic/show/1...
If you register with HMRC as self employed and you are your company as it were there is a box to tick about not paying the NI on it if you are expcting it to be below a certain threshold.
I think the order is -
Get EIN/ITIN- which is form SS4 anmd a phone call for EIN then it is about a 6 week wait, or W7 for ITIN send off the ID and wait 3 months.
Once you have the number get the W8 BEN form and send it off to Amazon. If you have your book anywhere else you need one form for each place.
Thanks for reminding me I need to do my tax return on pittance:)
Oh and you can ask Amazon to hold your cheque payments whilst you sort it out and then once you have the forms and the number you can ask them to release it. I suspect they are sneaky and it is 60 days after release. Might be easier than trying to claim back the tax.
Amazon sends you an email when they receive it.
New tax year looming, so I'm going to give it a go & ring for an EIN later today. Wish me luck!
Thanks... second time lucky I hope.I got thru pretty quickly first time but they've altered the 'press button whatever' numbers so I plumped for 4, and the guy said I'd need an SS-4. Which I don't. So I've thanked him and will try again & hope I get someone else!
Got a different range of push-button options now... trying 2 & holding. I may be some time.
Yey, got it! Lovely lady on the other end. She started by saying I needed to fill in an SS4 and I said I'd been told I didnt as I was not employing anyone and was a sole proprietor, so we took it from there and went thru the details. Phew.
Oh I was told about the SS4 as well. I simply filled one in and rang back. This whole tax thing seems very dependent on who you ask.You can get an EIN and an Individual/You can't.
You need the W7 form/ss4 you don't.
You need photo ID/you don't.
Nothing like consistency:)
Glad you are sorted, you have also reminded me I need to send a copy to Smashwords as well.
I've also done a copy for Kobo but have had to email them cos I don't know where to send it. Doesn't give any address on the website that I can see, and I've not been with them long enough to warrant a payment yet.
Got a message back from Kobo. No, they don't need a W8-BEN as they are a Canadian company so don't withhold tax. We just need to account for it in our own country, which is far more sensible.
Well done, Karen. It took me bloomin' 8 months to get my Tax number, glad to see the process has got more author UK friendly! :-)
Well of course the Canadians do it sensibly.
I don't think it's got more UK friendly, Mel. I think our authors have become cannier at dealing with the bureaucracy.
Thrilled to bits. Just had an email from Amazon saying my form is fine and now the withholding tax is 0%. Whoopee. (sent it to the States around the 6 April)
Yay!
hi, coming in on this conversation a bit late. I'm struggling with my W-7 because the IRS sent it back saying that I didn't provide an 'exception number'. I did.exception 1 (d) royalty income...
treaty country: United Kingdom
treaty article no.: 12
It has occurred to me that the problem may be that, though I've lived in the UK for more than 50 years, I've never got round to naturalising, and am still Portuguese... and that, perhaps, they're wanting an exception number and treaty for Portugal, not the UK... but being permanently resident in the UK, I fear this too might not work.
Help please!
I haven't a clue but I'll mention it in one of the more visited threads :-)
Jim wrote: "I haven't a clue but I'll mention it in one of the more visited threads :-)"thank you. Where are those then?
I'm not sure how you see the page or what you're seeing it on
I can see it on anything :)desktop, phone...? I am hoping that somewhere on Goodreads there is someone who has had the same problem I have. Without feedback from the IRS, and the massive turn around time, sending off W-7s in various incarnations, is just guesswork :(
I've got one from Amazon re the business I'm running in the US and the VAT number required - I'm not running a business, I'm only writing my little novels. The email is a no-reply type and the link only allows me to fill in the VAT number. I've filled the box with "I'm not running a business" and I still receive notifications of a VAT number required.There's no sign of a 'Contact Amazon' on any of the pages. Sigh.
I'm only saying to Ricardo that he is not alone!
Anna Faversham wrote: "I've got one from Amazon re the business I'm running in the US and the VAT number required - I'm not running a business, I'm only writing my little novels. The email is a no-reply type and the link..."That makes no sense. The US doesn't have VAT. Are you sure the e-Mail is really from Amazon?
Yes, it's definitely from Amazon, though you make a very good point. The initial request came through on my Amazon Advertising campaign pages. I'm ignoring it now as I can't find somewhere to tell them they're up the creek. If they give me an opportunity to explain - I will.I'm really just making the point that Amazon is not always right.
The key with self employment is to hold on to everything. buy yourself a file from the local stationery store and keep everything together. Create a worksheet using Excel, or the excellent free alternative in OpenOffice. Every time you receive a payment or you spend money related to your writing, make a note in the worksheet.
Most authors carry notebooks with them in case they get a sudden inspiration, and don't forget, if you are publishing to a Kindle, you'll need to buy one to ensure it is formatting correctly. Again, this is a legitimate expense if you use it for that purpose. Additionally, as you are self employed, it does not have to be used exclusively for your writing, you can use it to read books!
Another deduction is a computer, or laptop. You have to write on something and you can use it for advertising too (Facebook, Twitter, blogs, etc.). Remember though, you can only deduct 25% per year as it is considered a capital purchase.
For example, should you spend £500 on a laptop, you can offset £125 in the first year. Unfortunately, in the second year you can only deduct 25% of the balance of £375, so you can offset £93.75. The third year, the balance goes down to £281.25, and so on. Many self employed people will replace their computer every three years or so.
It is quite possible that you may make a loss as an author. Stop laughing, you might make a profit. You can claim that loss back against your tax paid, which includes your PAYE income tax.
Please remember, I am not an accountant.
Oh grief, have I inadvertently started a new thread?