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UK tax help (UK company and Amazon affiliate)

Discussion in 'Business & Tax Advice' started by Holzr, May 18, 2017.

  1. Holzr

    Holzr Jr. VIP Jr. VIP

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    Hi everyone

    Looking for some guidance/tax help. I am registering as a sole trader and limited company (which I will hold dormant untill it is logical to switch and to protect ltd brand name). The goal is to incorporate my Amazon affiliate account into my business.

    This may sound like a simple question but do I need to pay US tax also? If anyone has any info or articles would they mind sharing as this is something I need to work out. Thanks in advance
     
  2. riz_a

    riz_a Newbie

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    As far as I'm aware, No. If you are not a resident/residing in the USA and are not having the earnings paid into a US bank account you should be exempt. From personal experience, this was the case with me but as an individual. The thread below may provide you with some insight as a limited company, specifically the comment I have quoted. The UK has the same tax treaty with the US as India.

    https://www.quora.com/Is-affiliate-income-from-sites-such-as-Amazon-classified-as-business-income-or-services-on-an-income-tax-return



     
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  3. riz_a

    riz_a Newbie

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    Update after a little more research. Unless you are generating more than $20,000 in sales or over 200 individual transactions per tax year you do not need to do anything. If you are above this threshold then IRS regulations require non-U.S. taxpayers to provide Form W-8BEN (IRS website) to Amazon in order to be exempt from U.S. tax reporting requirements. Hope this helps.

    https://www.amazon.com/gp/help/customer/display.html?nodeId=200663310
     
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  4. Holzr

    Holzr Jr. VIP Jr. VIP

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    Thanks a lot thats helpful. Was kind of hard to find anything online so that clears it up :)
     
  5. elavmunretea

    elavmunretea Elite Member

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    The 20k limit is the same with PayPal and the IRS too, but when they asked I just left it and it was fine.

    One thing I would like to know, is how do you pay tax on USD?

    Say I earnt 45k last year, but the dolar/pound changed drastically, do I pay tax on the value at the time of sending the return, time of each individual transaction etc.

    Also, if I only ran £17k through a bank, and spent/saved the rest direct from a stealth PayPal, do I need to pay tax ( I know I NEED to, but should I)
     
  6. Holzr

    Holzr Jr. VIP Jr. VIP

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    Regarding exchange rate I found this

    http://www.uk-yankee.com/articles/us-tax-guide-americans-living-uk

    This is for us citizens living in UK. Not sure if this applies to UK citizens and companies. Very hard to find relevant info.

    I guess it depends if PayPal contacted the IRS I suppose. As technically you should pay taxes on your income/profit but hmmm unless PayPal report it to the IRS then....
     
  7. deals24

    deals24 Registered Member

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    If you are UK resident and registered business in UK (Ltd or self employed) you have to pay only UK tax and NI, nothing outside UK
     
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  8. bluehatface

    bluehatface Regular Member

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    Note: I'm not a lawyer, but this is my method and understanding.

    This is where it gets a bit sticky. If you're getting payed into a Payoneer account, or a USD bank account etc, then you have to convert it to GBP (I think the BoE rate of the day, possibly a monthly average) for your return. If you get a cheque (or your Paypal I think), it'll automatically convert to GBP when you deposit.

    Regarding hidden funds, you should declare, but if it's well hidden you will get away with it (I only declare what gets put in my bank account). Not sure I'd risk it with 30k though!
     
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