To ITIN or not to ITIN? UK sole trader | US company paying | W-8BEN content
Thread poster: mccafe

mccafe
United Kingdom
Jul 21, 2019

Morning guys

Working from home office in the UK as a sole trader business, developing software apps for US company, 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 (See more
Morning guys

Working from home office in the UK as a sole trader business, developing software apps for US company, 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 W8-BEN
I don't need W8-BEN form I need form 8233 (https://www.irs.gov/pub/irs-pdf/f8233.pdf)
I just need W8-BEN 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 W8-BEN? Thanks!!
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Cristina Crişan  Identity Verified
Romania
Local time: 06:21
Member
English to Romanian
+ ...
W8-BEN and UK TIN Jul 21, 2019

...if you have unlimited liability, otherwise W8-BEN-E.
I am not in the UK, but had to fill out a W8-BEN recently.
You only need an ITIN if you are required to file a tax return with the IRS.
The W8-BEN is a certificate of foreign status and I am not even sure whether it is sent to the IRS or just kept on file by the paying company.


 

Sheila Wilson  Identity Verified
Spain
Local time: 04:21
Member (2007)
English
+ ...
Just for clients' use Jul 22, 2019

Cristina Crişan wrote:
I am not even sure whether it is sent to the IRS or just kept on file by the paying company.

US clients who have asked me to complete this form have said it's for their own records, in case they are audited.

I've basically just had to give my identification details - name and address etc. and tax number (anything that will serve to identify me if/when they check with my tax authority).


 


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To ITIN or not to ITIN? UK sole trader | US company paying | W-8BEN content

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