Morning guys
On the crux of starting work for US company, as a sole trader business in the UK.
I need to fill in a W-8BEN form I believe to stop 30% tax witholdings in the US.
Everywhere I look, different contradicting advice is given. Although some of the most recent findings appear to suggest ITIN not needed, simply use NI number, or sole trader HMRC UTR number.
It relates to Part I, section 5 + 6 (https://www.irs.gov/pub/irs-pdf/fw8ben.pdf)
"
5 U.S. taxpayer identification number (SSN or ITIN), if required (see instructions)
6 Foreign tax identifying number (see instruction
"
Now according to the instructions (https://www.irs.gov/pub/irs-pdf/iw8ben.pdf)
"If you do not have an SSN and are not eligible to get
one, you can get an individual taxpayer identification
number (ITIN). To apply for an ITIN, file Form W-7 with the
IRS. It usually takes 4–6 weeks to get an ITIN. To claim
certain treaty benefits, you must complete line 5 by
submitting an SSN or ITIN, or line 6 by providing a foreign
tax identification number (foreign TIN).
"
So it suggests its more than fine to simply provide a foreign tax ID number in line 6.
Also adding more weight to UK TIN being ok...
"If you are claiming treaty benefits, you are generally
required to provide an ITIN if you do not provide a tax
identifying number issued to you by your jurisdiction of tax
residence on line 6"
and finally
"In addition, if you are not using this form to document a
financial account described above, you may provide the
TIN issued to you by your jurisdiction of tax residence on
line 6 for purposes of claiming treaty benefits (rather than
providing a U.S. TIN on line 5, if required)."
So given all the above, I've been in touch with over 10 different, US/UK tax specialists, and every single one of them is telling me a different story, some say :
I'm being told I need an ITIN, and an EIN.
I need just an ITIN and W-8BEN
I don't need W-8BEN form I need form 8233 (https://www.irs.gov/pub/irs-pdf/f8233.pdf)
I just need W-8BEN and UK TIN
I need to incorporate in US or UK then apply for EIN. An ITIN is only for passive income/rental income.
Anyone here have actual first hand experience of working in the UK, for US, and the W-8BEN? Thanks!!
PS the cost involved in me getting an ITIN is around £299ex and a visit to London to get my passport signed off in person, then a 7-11 week wait, and the US client having to withhold 30% on payments until the ITIN is given to me (apparently) i'd rather avoid this if its not totally necessary.
On the crux of starting work for US company, as a sole trader business in the UK.
I need to fill in a W-8BEN form I believe to stop 30% tax witholdings in the US.
Everywhere I look, different contradicting advice is given. Although some of the most recent findings appear to suggest ITIN not needed, simply use NI number, or sole trader HMRC UTR number.
It relates to Part I, section 5 + 6 (https://www.irs.gov/pub/irs-pdf/fw8ben.pdf)
"
5 U.S. taxpayer identification number (SSN or ITIN), if required (see instructions)
6 Foreign tax identifying number (see instruction
"
Now according to the instructions (https://www.irs.gov/pub/irs-pdf/iw8ben.pdf)
"If you do not have an SSN and are not eligible to get
one, you can get an individual taxpayer identification
number (ITIN). To apply for an ITIN, file Form W-7 with the
IRS. It usually takes 4–6 weeks to get an ITIN. To claim
certain treaty benefits, you must complete line 5 by
submitting an SSN or ITIN, or line 6 by providing a foreign
tax identification number (foreign TIN).
"
So it suggests its more than fine to simply provide a foreign tax ID number in line 6.
Also adding more weight to UK TIN being ok...
"If you are claiming treaty benefits, you are generally
required to provide an ITIN if you do not provide a tax
identifying number issued to you by your jurisdiction of tax
residence on line 6"
and finally
"In addition, if you are not using this form to document a
financial account described above, you may provide the
TIN issued to you by your jurisdiction of tax residence on
line 6 for purposes of claiming treaty benefits (rather than
providing a U.S. TIN on line 5, if required)."
So given all the above, I've been in touch with over 10 different, US/UK tax specialists, and every single one of them is telling me a different story, some say :
I'm being told I need an ITIN, and an EIN.
I need just an ITIN and W-8BEN
I don't need W-8BEN form I need form 8233 (https://www.irs.gov/pub/irs-pdf/f8233.pdf)
I just need W-8BEN and UK TIN
I need to incorporate in US or UK then apply for EIN. An ITIN is only for passive income/rental income.
Anyone here have actual first hand experience of working in the UK, for US, and the W-8BEN? Thanks!!
PS the cost involved in me getting an ITIN is around £299ex and a visit to London to get my passport signed off in person, then a 7-11 week wait, and the US client having to withhold 30% on payments until the ITIN is given to me (apparently) i'd rather avoid this if its not totally necessary.
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