American Tax

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System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in General member discussion
I have a client who will be receiving book royalties from his publisher in the USA. My client is permanently based in the UK and I thought he would have to declare the income and pay the tax under our tax system, but the publisher insists he has to pay tax under the American tax system which means he will pay tax at 30%.

Can anyone point me in the right direction as I am now confusing myself!!!

Thanks
Michelle

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  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Re:American Tax

    Have a read of the 'foreign income' chapters in your ATT course! :lol:

    Resident status, worldwide income, DTR?

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Re:American Tax

    Thanks Dean,

    I thought those books were for propping up the kitchen table :lol:

    Seriously, I'm at this particular clients' office all day, and an email came through from the publisher. I'll look into it when I get back, as client has stopped panicking.

    Michelle
  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Re:American Tax

    Tell him there's nothing to worry about... "trust me, i'm an accountant" :lol:

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Re:American Tax

    I believe you can apply for a reduction in the 30% withholding tax by filling in a variety of forms.

    If you drop me an email I will give you contact details of an American accountant based in the UK. I am sure they will be able to give you more informed advice.


    Dean
    (deanshepherd@mmi-online.co.uk)

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