Forum Moderators: LifeinAsia
Does any non-US publisher get Adsense earnings paid in another currency other than £ as a form of currency speculation?
As USD is 2:1 £:$ it could be a reasonable medium term investment (with the usual risks of course)
What are your experiences (banking/reporting for tax/etc)?
Thanks - W.
As USD is 2:1 £:$ it could be a reasonable medium term investment
If you think the dollar is going to rise against the pound, why don't you just buy dollars with your pounds now? What's the benefit of using Google as a middleman?
When you do a transaction in the UK you have a vat of 15%.
If you do business in the us and get paid through Pay Pal or others.
do they deduct that or do they send you 100% of the transaction?
(back to the UK)
That didn't come out too well, but I hope you get my drift.
When you do a transaction in the UK you have a vat of 15%
...err, no you don't, VAT is 17.5% in the UK.
It was raised from 15% to 17.% by Norman Lamont in 1991. Where have you been? :-)
If you do business in the us and get paid through Pay Pal or others. do they deduct that or do they send you 100% of the transaction? (back to the UK)
Are you thinking of income tax? Remember that if you're a UK resident and are UK domiciled, you are required to pay UK income taxes on your worldwide income not just your UK income.
If you have Adsense earnings and don't declare them you're asking for trouble...
Thanks for the reply!
I am in the US. Didn't know about the increase in the VAT.
Thinking about partnering with a UK citizen on a US website.
Trying to figure out how to repatriate his share of the earnings
(if any!) back to him. Is there VAT plus income tax? Are they
two different taxes? If so you guys are getting slaughtered!
Fill me in with the rest of the grim details. Thanks! King Fisher
If so you guys are getting slaughtered!
Don't get me started. I'm pretty sure bashing politicians is against the TOS anyway :-)
Fill me in with the rest of the grim details
If you're feeling particularly masochistic then you could head over to Her Majesty's Revenue and Customs [hmrc.gov.uk] and you'll find everything there...
In short:
VAT: VAT is more or less the equivelent of other countries' sales taxes - it's currently 17.5%. Our neighbours have even higher rates - France 19.6%, Germany 19% (as of 1 January), Sweden 25%. Businesses above a certain size (it's actually a bit more complex than this) have to register with HMRC for VAT and must then charge it to their customers (they add it onto all their invoices), they then offset this against the VAT they are paying to their VAT-registered suppliers.
Personal income: Income tax bands are set each year, you get a certain allowance tax-free, then as you earn more you get taxed at progressively higher rates. Full details of the allowances and rates are here [hmrc.gov.uk]. Top tax rate is 40%. Social security contributions ("National Insurance") come on top of this but it's not just a simple percentage rate.
The key question is probably this: Is the UK citizen you'll be doing this with already self-employed, in partnership or does s/he own a business already?
Trying to figure out how to repatriate his share of the earnings (if any!) back to him. Is there VAT plus income tax?
If your business is registered in the USA, and pays business taxes there, then just send the money to the UK via bank transfer. Your partner will be responsible for declaring the money to HMRC and working out what tax to pay :-)
Thanks for the complete and under stand-able reply.
Talk about a tax burden, you guys have a hard road
to go! I guess I wont complain so much April 15th .
Income tax time in the US. King Fisher
