Central Park
Hey, I have something useful (although not particularly riveting – it’s about tax) to share!
I recently acquired a new American client, and they asked me to provide a US taxpayer identification number (TIN) and a completed W8-BEN-E form to prove that my company isn’t registered in the US. Failing that, they would have to deduct 30% non-resident withholding tax from my invoices. Yikes!
The W8-BEN-E form is available on the Internal Revenue Service (IRS) website, and as I started struggling at question 5, I asked an accountant to help me out. Just in case you find yourself in the same situation, Naked Translations is a UK Limited company, and the right box to tick was “Active NFFE” (non-financial foreign entity). Obviously. The rest is fairly straightforward.
My policy is always to hire professionals to do the work I don’t feel qualified to take on, but if you feel like grappling with the IRS’ arcane ways, this document gives a clear explanation of form W8-BEN-E.
Then you just send the form to your client, and then they file it in case the IRS needs to see it.
The picture was taken when I spent two weeks with another American client in March. It’s those American connections that motivated me to kickstart this blog again. More on that subject in another post.