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How do I fill out this online W8 form? I'm from the UK, any help?

Discussion in 'CPA' started by iClick2Cash, Apr 16, 2010.

  1. iClick2Cash

    iClick2Cash Registered Member

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    Could anyone guide me on how to fill out this online W8 form? I'm really confused as to what to write, I'm an individual, self employed.

    Here's what I need to fill in:

    [​IMG]

    I don't understand the bottom part, the Claim of Tax Treaty crap section at the bottom, the national principal contracts and the capacity in which acting? Self? Also I'm only self employed, I don't have a registered company name, do I still put the company name down at the top? And what about country of incorporation? I'm not incorporated? What do I type? PS. I'm from the UK!
     
    Last edited: Apr 16, 2010
  2. thomansfel

    thomansfel Jr. VIP Jr. VIP

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    capacity in which acting -> write your name; Claim of Tax Treaty -> leave it blank; registered company name -> your name; country of incorporation -> leave it blank; bottom line not all fields are mandatory, some may apply some don`t, use your logic, this one is for cpa L .
     
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  3. iClick2Cash

    iClick2Cash Registered Member

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    Thanks but could anyone else confirm this too? Also, so in the beneficial owner is a resident of, do I type in UK? Whats the special rates crap though? And do I tick the National Principal Contracts box? Thanks.
     
  4. kendra

    kendra Power Member

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    1) You need an EIN number (don't bother with a ITIN). You need an EIN to claim the 0% tax treaty benefit. You can easily get an EIN:

    • Fill in form SS-4 found here: http://www.irs.gov/pub/irs-pdf/fss4.pdf
    • Phone this number and tell them you want to apply for an EIN number: 001 (215) 516-6999
    • They will ask you if you have filled in the SS-4 form, tell them 'yes'. When they ask you the questions, simply read from the form what you have written.
    • Important Part: They will ask you what type of entity you are. (Question 9a) - tell them you are a Sole Proprietor - (this is the same as being self-employed) you don't need a SSN for this - leave that part blank.
    • They will then give you a EIN over the phone.
    2) Claim of Tax Treaty allows you to pay 0% tax on earnings in the US. The UK has a zero tax treaty. If you don't get an EIN - it is likely you will have 30% with held from your earnings.

    • Where it says 'The beneficial owner is a resident of' type UNITED KINGDOM.
    • You don't need to fill in the 'Capacity in which acting' as that is only used when you are filling the form in for someone else. Also it is only required if you are using them to earn outside the US. If all your earnings are inside the US you don't need a Notional Principle. (I may be wrong on this part though - so check it out further if you want to be sure!)
    • You don't need a 'registered' company name. Just put in the name you trade under.
    • Not sure what to put in 'country of incorporation'. Maybe leave it blank. If it won't allow you to leave it blank put in UNITED KINGDOM.
    Hope that helps.
     
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    Last edited: Apr 16, 2010
  5. geteasymoneynow

    geteasymoneynow Regular Member

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    no, that will get you in trouble!
    put yourself as self employed not under a company
     
  6. kendra

    kendra Power Member

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    Self-Employed = Sole Proprietor
    You can use your trading name or business name if you are self employed (this is totally different to "company name")

    This is perfectly fine, I have spoken with both the HMRC and the IRS on this.
     
  7. iClick2Cash

    iClick2Cash Registered Member

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    Thank you for your help kendra. But is EIN really required? I read somewhere that you need a ITIN, now I'm confused. Also, in the special rates and conditons section, what do I fill in for the provisions of Article and the next two boxes and the big box which asks for explanation?
     
  8. voyevoda

    voyevoda Regular Member Premium Member

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    British common law has a concept of "sole proprietor". You can start, run, and stop running a business in under a second if you wish. Of course, you're 100% personally liable for anything your business does. Agency law doesn't come into play with sole proprietorships or (non-limited) partnerships.
     
  9. kendra

    kendra Power Member

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    Yes, EIN is fine and much, much easier to get than ITIN. An ITIN requires identification documents and you have to apply to the US Embassy in London. This can take weeks, and in some cases months. There are a lot of people that for some reason believe you need an ITIN, but this is just not true. At least for UK residents anyway.

    I have used an EIN myself. Very easy to get - I told the IRS exactly what I wanted it for and they were fine with it.

    Also, I am not entirely sure what you will need to fill in the provisions of article area. I do know that you will need to put 0% in the percentage box as you can claim 0% taxes under the UK / US treaty.
     
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  10. nufaman

    nufaman Elite Member

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    Why are you even filling a w8? Shouldn't you be using a w9?
     
  11. iClick2Cash

    iClick2Cash Registered Member

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    I'm from the UK and filling a w8 for CPA.Lead. Why?