If you live in the UK and receive income from the United States, sooner or later a US broker, client, publisher or platform will send you a Form W-8BEN. It looks like a tax form. It isn't a tax return. It is a certificate that tells the US payer two things: that you are not a US person, and which treaty rate of withholding applies to what they pay you.
What the form does
US payers must withhold tax at source on certain US-source income paid to non-US persons. The default rate is 30%. A W-8BEN lets a UK resident reduce that to the rate in the US–UK tax treaty:
- Dividends from US shares: usually 15% (0% for some pension holders).
- Interest: usually 0%.
- Royalties (books, music, software, licence fees): usually 0%.
- Services performed in the UK: generally no US withholding, because the income is foreign-source; the W-8BEN still confirms your status.
The payer keeps the form and applies the rate. Nothing is sent to the IRS, and the withholding is usually final for dividends, interest and royalties, so no US return is needed for that income.
Who should use it, and who must not
| You are | Form to give |
|---|---|
| A UK resident, not a US citizen or green card holder | W-8BEN |
| A UK limited company or other entity | W-8BEN-E |
| A US citizen or green card holder, even living in the UK | W-9 |
The last row catches people out. A US citizen in the UK is a US person and is taxed on worldwide income by the US; the W-8BEN is not available, and signing one is a false certification. The right form is a W-9, and the income goes on the US return.
Filling it in: the parts that matter
- Part I, line 6: your UK tax reference. Your National Insurance number or UTR satisfies the "foreign TIN" requirement for a UK resident.
- Part II, line 9: "United Kingdom" as the country of residence for treaty purposes.
- Part II, line 10: the treaty article and rate, only where you are claiming something other than the standard rate for that income type. For dividends and interest the standard treaty rates apply without a special claim; for royalties or pension payments the article should be stated.
- Signature and date: the form is valid until the end of the third following calendar year.
If your circumstances change, such as moving to the US or becoming a US person, the form becomes invalid and the payer must be told within 30 days.
When a W-8BEN is not enough
- You run the business through a UK company: the company gives a W-8BEN-E, which also asks for its FATCA classification.
- You perform services inside the US: that income is US-source. Depending on the amount of US activity, a US return may be needed and the form may change (W-8ECI where the income is effectively connected with a US trade or business).
- The payer is not a US business (a platform based elsewhere, a private individual): the US withholding rules may not apply at all, and the form may be unnecessary.
The UK side
Reduced US withholding doesn't change your UK position. US dividends, interest and royalties are reported on your UK Self Assessment, and any US tax withheld at the treaty rate is credited against your UK tax on the same income. Excess withholding (for example 30% taken because no form was given) is not creditable beyond the treaty rate and has to be reclaimed from the IRS.
How we handle it
Tell us who is asking and what the income is. We confirm whether you are a US person, which form applies, complete the treaty section correctly, and tell you whether a US return or UK disclosure follows. Fixed fee, by email.
Related: W-8BEN and US withholding forms · The US–UK tax treaty explained · US tax returns for Americans in the UK