Forum Moderators: martinibuster
Here is a quick rundown of the more notable changes:
Some interesting changes, some I am sure for legal reasons, some for tax reasons, and some just for support reasons, so they can refer people to the terms. The related searches addition is an interesting one - I am guessing we will see a new version of the related searches "feature" arrive back on the AdSense scene sooner or later.
We should be seeing some sort of tax information upon login sometime soon, with that addition to the terms.
I am guessing they added those repeated manual clicks to the terms due to all the click happy webmasters and their friends when the program first launched, and thought clicking ads was a great way to make money during the first days.
I also thought it was curious that they removed "is not false, misleading, defamatory, libelous, slanderous or threatening".
Any thoughts on these changes?
Before it said checks would be RECEIVED within 30 days, which always brought confusion since it contradicted the FAQ.
On my reading of that then, assuming my AdSense payments are not "effectively connected with the conduct of a U.S. trade or business", I'll need to fill in a W-8BEN for Google, so they don't have to withhold 30% of the payment. But maybe I need a US TIN to claim benefits under the US-Australian tax treaty... this is all very confusing!
Thanks for the link Blue_Fin. That tells one about the system, The forms themselves are on other pages.
Problem seems to be that there are various flavours of Form W-8.
Whilst I can see from the amount of money being sent abroad (money laundering has become a touchy subject these days, and it must be enough to equip and arm a middle sized army)that Google's auditors would have to insist that Google held these forms, Google do not seem to have given much help to publishers in terms of
1. Specifying exactly which form they want
2. Specifying where and to which department the form should be sent
3. Do they want it sent as an e-mail attachment or by mail
Administrative nightmare :(
Thanks for the excellent summary Jenstar!
Then it directs me to the code page, and asks me to copy and paste my selected code into my website, after which I have to click on "Go to my account" button.
Although now that I'm in, everything looks normal again...
Thanks for the summary, that page looked rather daunting..!
[google.com...]
Get ready for related searches, guys.
Violation of any of the foregoing may result in immediate termination of this Agreement, and may subject You to state and federal penalties and other legal consequences. result in immediate termination of this Agreement, and may subject You to state and federal penalties and other legal consequences.
Heh, Google made a copy/paste error :)
With these other advertisers my earnings have always been in the 3 figure area. I would just run to the HSBC and posket the lolly
I am getting a little worried about my tax liability here in the UK. As google Asdsense has made a massive increase to my earnings
Does anyone in the UK have any experience as to tax liability.
Most webmasters follow this route I think. The website starts as a hobby and then gets serious.
The HSBC are great at cashing US cheques but these adsense ones are tooooo big.
How much information comes accross the Atlantic?
Does anyone know?
I am in the UK and I have been sending off Form W8,s to the US for several years
There seem to be a few different flavours of the form (W-8BEN, W-8ECI, W-8EXP, W-8IMY). Do you recall which one you've been filling out?
Also, have you always filled out the same W-8, or do you use different ones for different situations?
I find that IRS language a little confusing, so I'm hoping a layman's explanation will be absorbed into this simpleton's mind with a little less difficulty!
NB. Blue_Fin's PDF link above is where I learnt about the multiple W-8s.
As has been famously remarked, the two certainties in life are death and taxes.
Make no mistake, you are liable for UK tax on this money if you bring it into the UK (and its difficult to deal with it offshore and avoid tax legally, unless you are dealing with really vast amounts)
You have two options, either hide it and hope the UK taxman never finds out, or declare it and pay tax
I run, among other things, a web site business which is UK registered as a company and has a VAT registration. I just add Google revenue to this and pay tax
Choice is yours, depends whether you want to live in fear or not ;)
Why would Google be required to engage in any withholding when paying a foreign corporation for advertising. To turn the whole argument round a little would Google expect a foreign advertiser to withhold taxes on payments for the Adwords service?
This is a trading situation, we aren't running businesses in the US we are simply selling something to a US company.
In the form it states that withholding applies to:
· Interest (including certain original issue discount (OID));
· Dividends;
· Rents;
· Royalties;
· Premiums;
· Annuities;
· Compensation for, or in expectation of, services performed;
· Substitute payments in a securities lending transaction;
or
· Other fixed or determinable annual or periodical gains, profits, or income.
Personally I don't think that selling advertising space is really any of these.
Debs
Make no mistake, you are liable for UK tax on this money if you bring it into the UK (and its difficult to deal with it offshore and avoid tax legally, unless you are dealing with really vast amounts)
The advent of the maetro (switch) card makes offshore banking a lot easier these days. I am actually a none tax payer who has created a website that is a bit bigger than he can chew. It has sort of snowballed and now Adsense is the final nail in the coffin by sending me another 4 figure cheque to worry about.
The tax man is not on my case, I never get sent a return as I am just a disabled none tax payer living off an injury pension from a previous employer. So the tax man is not on my case (at all)
This is why I ask how much information is disclosed by Google about foreign individuals with regards earnings....
I already use a UK drop address to receive the cheques, if they do send forms to the British goverment then maybe a need an even better mail drop address :-)
Anyway thank you to all who have replied
They will do it very simply, they will say that NO-ONE is paid until they send back a form. That way it is done very quickly...
They need to keep them on file so they will be telling us how to return them.. In the past for other companies I have sent them as attachments, faxes and even had a fed ex envelope sent to me.
So your guesses are a good as mine as to what they will do.
The toll-free number involving individual returns is 1-800-829-1040. The toll-free number for business tax returns is 1 800-829-4933.
I am a UK citizen living and working in Spain. They confirmed that my only tax obligations are local.
Does anyone in the UK have any experience as to tax liability. Most webmasters follow this route I think. The website starts as a hobby and then gets serious.
This would be a good thread all by itself! I'd bet there are lots of 'hobby' sites that turn into commercial endevours (sp?). At what point does a hobby become a tax liability?
Maybe the rules have changed recently ("to catch more terrorists", like all new laws) or Google has received different legal advice.
I do agree that something this global could be handled from a more tax-neutral country than the US - it'd make Google far more money also...
I already use a UK drop address to receive the cheques, if they do send forms to the British goverment then maybe a need an even better mail drop address
There is no real secrecy in most maildrops. Why bother with (apparent) fraud when a proper company setup can have minimal tax if done carefully (even in the UK) and would build you a business you can sell later?
I'll pass on word of the cut/paste error--thanks crxchaos! :)
I know China and HK don't have tax treaties with Canada and US. So people there can safely make zero-tax 'offshore revenue' though you need to apply to tax department and give reasonable explanation HOW your revenue is made offshore.
I think you need to prove to them that majority of the people are from countries with which there are no tax treaties.
Certainly we make income from US companies though we are based in another country for over 10 years, and I dont think we have had to fill in any such form.
I'd bet there are lots of 'hobby' sites that turn into commercial endevours (sp?). At what point does a hobby become a tax liability?
Answer: When you make a profit.
In the U.S., most mom-or-pop Web publishers will want to file Schedule C. On this form, you declare your gross revenues, take whatever business deductions you're entitled to, and end up with a bottom-line figure which (assuming that it's more than zero) is transferred into the income section of your 1040.
Programs like TaxCut and TurboTax make it fairly easy to use Schedule C, assuming that you've kept decent records of your business income and expenses. You simply go through a step-by-step interview process, and the program completes Schedule C and any related forms.
Things can get tricky if you use the same computer, home office, etc. for both business and personal use, and the IRS might be skeptical if you declare a loss from your Web business because you've deducted the cost of the state-of-the-art Alienware PC that you use to play games. :-)
