Just a quick note to let you know that I have updated my blog post on Tax on US Royalties to cover two extra important points.
(If you’ve not read it, this blog post is about how to get a US Tax ID to prevent tax being deducted at source from your royalties on US sales.)
The updates are:
- You can apply for EIN (Employer Identification Number) quickly and easily by ‘phone not only if you are a limited company (which is the route I took), but also if you are a sole trader – I hadn’t covered the sole trader point previously simply because I applied as a limited company. (To become a sole trader in the UK you need to register as self-employed with HM Revenue & Customs and complete a Self Assessment tax return each year to declare your business income.)
- I’ve recently read that if you are an individual applying for an ITIN (Individual Taxpayer Identification Number) things just got more tricky – it seems that since the summer of 2012 they are now sending original passports off to Texas as part of the ITIN approval process. However one author did find a workaround for this – see the post for more info.
I hope the updated information is of help to anyone still thinking of applying for a US tax ID – as ever, applying as a business seems so much more straightforward!