How do you submit the Google AdSense tax form as a UK citizen?

As a UK taxpayer who makes money from ads on YouTube, it's essential to fill out the Google AdSense tax form to ensure you don't pay tax in the US as well as the UK. If you don't fill it in you will likely be subject to a withholding tax rate of up to 30%! If you find yourself staring blankly at the form, wondering what on earth it all means, fear not! Capture Accounting has got you covered with a step-by-step guide to the process.

Here's a topline summary of what you need to do:

To submit a Google AdSense tax form as a UK citizen:

• Log into your AdSense account
• Complete the right tax form to confirm your UK tax residency status
• Enter company, personal and tax information
• Verify your details and submit the form

You’ll then be exempt from US withholding tax on your AdSense income.

While this guide is designed to help you navigate the Google AdSense tax form, it's not the same for everyone. It's important that you get legal tax advice if you are not sure how to fill it in. 

At Capture Accounting, we are specialists in influencer and YouTuber accounting, so contact a tax professional at Capture Accounting if you are unsure about your tax situation and need further guidance.

What is a Google AdSense tax form?

Google is a US-based company, so anyone who earns from AdSense may be subject to US taxes, depending on where they do business and what their tax residency status is.

The Google AdSense tax form is an online document that collects tax info from AdSense earners worldwide and reports it back to the US tax authorities. This helps to determine the right tax withholding rate for AdSense earnings. Everyone who makes money from Adsense must fill out the form.

Who needs to submit tax information to Google?

If you earn revenue through Google AdSense, you need to submit your tax information wherever you are located in the world. This includes people on the YouTube Partner Program, bloggers, website owners, and other content creators who monetise their online platforms through AdSense advertisements.

What does 'withholding taxes' mean?

There are two ways that tax authorities collect taxes; direct and indirect. Direct taxes are collected straight from the individual or company, like corporation tax. Indirect taxes are withheld at source, which means the organisation in question must collect the tax to pass on to the taxman, which in the UK is HMRC. A good example of this is how UK employers collect income tax and National Insurance from their employees.

Under US tax law, Google is required to collect tax info and withhold taxes on AdSense revenue on behalf of the Internal Revenue Service (IRS). This can be a deduction of up to 30% of your AdSense earnings. If you don't declare your AdSense tax info properly, you'll pay that on top of UK tax - ouch.

Do UK creators pay US tax on AdSense earnings?

The good news is that thanks to the UK and US tax treaty, UK YouTubers (who are resident in the UK for tax purposes) are exempt from paying US tax on their AdSense earnings. To make sure you claim tax treaty benefits and don't pay the IRS as well as HMRC, it's essential to fill in your Google AdSense Tax Form correctly.

How to fill in the Google AdSense tax form

Don't be fazed by filling out the form. There are helpful walkthrough notes throughout, and it should take no more than 15-20 minutes. There may be one or two questions for your accountant, but take a look at the following guide and start the form prepared with all the information you need.

I'm going to assume you've already created your AdSense account and have started to receive payments from Google. For more information on how to monetise your YouTube videos, read our helpful blog.

I'll also assume that you are a UK tax resident who operates either as a sole trader or a limited company.

1. Get started

Go to your Google AdSense account dashboard and click Manage tax info to go to the Payments profile settings. If you haven't yet filled out a tax form, you will see a not-so-subtle notification at the top of the screen telling you to do so ASAP!

From the Payments profile settings, click Payments, then Payments info. Finally, click Manage Settings and scroll to United States Tax Info.

2. Fill out the United States Tax Info section

Yep, you need to fill this out! It's to let Google know that you are a UK resident and therefore exempt from taxes withheld in the US. Click Start tax form.

To make sure you fill out the appropriate form, it will ask you whether you are an individual or entity. If you are operating as a sole trader, you would usually tick Individual. If you produce content through a limited company, then most often you will be required to tick Non-Individual/Entity but check with your accountant if you're not sure.

You will then be asked if your business is incorporated in the US, which, if you are a UK tax resident, will simply be No. Then select the right form based on your answers, which in the case of a UK limited company or sole trader is usually W8-BEN-E.

3. Enter your tax information

For this, you will need to enter the name of your business as detailed on your tax documents and select your country as the UK.

As for Entity type, if you are a limited company owner, you would usually select Corporation, but check with your accountant if you're not sure. Sole traders, i.e. individual traders that are not a separate entity from their business, would usually check the Disregarded entity box - but again please check with a professional.

In the box labelled Foreign TIN, you should enter your Unique Taxpayer Reference (UTR), which you can find on any documentation from HMRC. As a UK taxpayer, the last box, US EIN, is not applicable, so click Next.

4. Enter personal details

This is an easy bit! Enter your address and other personal details as required, then go to Tax Treaty.

5. Tax Treaty page

You will see the question, "Are you claiming a reduced rate of withholding under a tax treaty?". If you are a UK resident for tax purposes, then go ahead and tick Yes and select the United Kingdom.

When you get to the Limitation of benefits box, you might need advice from your accountant. If you are the main beneficial owner of a limited company, or your company has fewer than seven beneficiaries, then you are likely a 'Company that meets the derivative benefits test'. But please check!

Finally, under Services tick AdSense select Article 7, paragraph 1, which is likely to be the only option. Then select 0% and tick the box underneath.

6. Complete your submission

The next few questions are self-explanatory. Before you submit your tax information, double-check the information is correct, check all the necessary boxes under Certify and sign, and press Submit.

Now if you go back to the Payments section of your account, you will see a summary of your submission which confirms the 0% withholding rate for your Adsense earnings.

Understanding your tax residency status

Whether you are a UK tax resident or not will affect whether you are eligible for the AdSense 0% withholding tax rate. Tax residency basically means which country sees you as a resident for tax purposes, affecting how you're taxed and what tax rules apply to you there. You are usually considered a UK tax resident if you spent 183 or more days in the UK in the tax year.

For more information on how to determine your tax residency status, ask your accountant or visit gov.uk.

To learn more about your tax obligations as a YouTuber, check out our blog.

Looking for a specialist influencer accountant?

At Capture Accounting, we are specialists in influencer and YouTuber accounting. We can help you understand your tax liability, keep you compliant and ensure you keep as much of your income as possible. That means you can relax and continue to create great YouTube content knowing your taxes are in good hands.

Book a short consultation with us, so we can help you with tax advice, including how to submit tax information to Google AdSense.