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UK Resident earning Income from the USA - The W-8 Form Explained
If you earn money from a U.S. company but don’t live in the U.S., you may be asked to fill out a W-8 form. Sounds technical? Don’t worry—we’ll break it down in simple terms so you know what it is, why it matters, and how to complete it.
What Is a W-8 Form?
A W-8 form is a U.S. tax form used by non-U.S. individuals and businesses to confirm they are not subject to U.S. tax on their income. Without it, the IRS assumes you’re a U.S. taxpayer and applies a 30% withholding tax on payments like royalties, dividends, and certain business earnings.
Who Needs to Fill Out a W-8 Form?
If you’re a non-U.S. resident or business earning income from a U.S. company, you’ll likely need to complete a W-8 form. Common scenarios include:
- YouTubers and content creators earning ad revenue from U.S. platforms.
- Freelancers and consultants working with U.S. clients.
- Authors and musicians receiving royalties from U.S. publishers.
- Investors receiving dividends from U.S. companies.
- Adult content creators earning from platforms like OnlyFans.
- Sellers on Amazon, Etsy, and eBay receiving payments from U.S.-based buyers.
- App developers and software creators earning through Apple or Google Play Store payouts.
If tax paperwork is stressing you out, an accountant can help simplify things for you. Find out what to expect in your first meeting with an accountant.
Types of W-8 Forms
There are different versions depending on your situation:
- W-8BEN – For individuals (the most common form). It confirms you’re a non-U.S. resident and may reduce tax withholding under a tax treaty.
- W-8BEN-E – For businesses and organisations.
- W-8ECI – For income effectively connected to a U.S. trade or business.
- W-8EXP – For tax-exempt entities (e.g., charities, foreign governments).
- W-8IMY – For intermediaries like partnerships or trusts.
Why Is the W-8 Form Important?
Filling out a W-8 form correctly can mean less tax deducted from your income. The U.K. has a tax treaty with the U.S., which means many people qualify for a reduced withholding tax rate—or even zero tax—on certain types of income. If you don’t complete the form, you could lose 30% of your earnings to U.S. tax.
How to Fill Out a W-8BEN Form (For Individuals)
- Name – Enter your full legal name.
- Country of citizenship – If you live in the U.K., write ‘United Kingdom.’
- Foreign tax identification number (TIN) – This is usually your U.K. National Insurance number.
- Tax treaty benefits – If you’re eligible for reduced withholding under a tax treaty, you’ll need to state the article of the treaty that applies to you (for example, the U.K.-U.S. treaty for royalties or dividends).
- Signature – Confirm the information is correct and sign the for.
Where Do You Send It?
You don’t submit W-8 forms to the IRS. Instead, you send them directly to the U.S. company paying you, such as YouTube, Amazon, OnlyFans, Etsy, or a U.S. client.
Key Takeaways
✔️ If you earn money from U.S. sources but live outside the U.S., you’ll probably need a W-8 form.
✔️ The W-8BEN is the most common form for individuals.
✔️ Filling it out correctly can reduce or eliminate U.S. withholding tax.
✔️ Send the form to the company paying you—not the IRS.
If you’re unsure whether you need a W-8 form or how to complete it, speaking to an accountant can help ensure you don’t pay more tax than necessary! Find out how an accountant can help you from your very first meeting.
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- How to File a Self-Assessment Tax Return | Blue Rocket
- 3 FAQs about income tax for the self-employed | Blue Rocket
- How to Organise Your Personal Tax Return Documents | Blue Rocket
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