Paying affiliates when you live in the UK

5 replies
Okay, so I just finished reading some materials about using Paypal to pay affiliates. I'm not sure I understood it all.

It seems like if you're in the US you need to send some 1099 form to every affiliate you sent money.

Is that correct?

Okay, so what if you're in the UK? What precautions are necessary if you're paying affiliates?

Any direction or advice on this matter would be much appreciated.

Basically, what's the legal lowdown on paying affiliates while living in the UK, but doing business with people in different parts of the world?
#affiliates #live #paying
  • Profile picture of the author TrafficMystic
    If you trust your affiliates I dont believe any are needed in the uk.
    I pay my affiliates 10k+ a month and I'm based in the uk and never had any issues.

    The affiliates are based in the us, asia, europe and the uk..

    I only use paypal to ensure I have the record of payment sent and record the payments internally via speadsheets..
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  • Profile picture of the author JPaston
    As I understand it, if you're outside the US you don't have to bother. You're outside the jurisdiction that requires this sort of stuff.

    From the UK you can carry out business with your affiliates worldwide without any restrictions or conditions and pay them via PayPal or any other means acceptable to them. It is your affiliates that have to take care of their own tax situation.

    Of course you need to keep all the necessary business records for your own tax records.

    This is possibly why a lot of marketers use Clickbank or other third party affiliate services as those services look after the affiliate requirements for you.
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    • Profile picture of the author Alexa Smith
      I'm neither an accountant nor a lawyer ("whoda thunk?") but I believe that there's absolutely no issue at all here, for you, living in the UK. It's up to the affiliates to declare their own earnings for tax in their own countries.

      Just think about not being totally dependent on PayPal, perhaps, in case you ever have a problem with your own PayPal account (as many seem to, lately).

      And note that by not using ClickBank or DigiResults or a similar service which does this for you, you're limiting yourself to using only affiliates who are willing to promote something for which they're dependent on the vendor for payment (i.e. rather than being dependent on ClickBank or DigiResults for it): that really does exclude a lot of people ... for example, I'm not normally willing to become an affiliate on those terms, and I'm far from the only one ...
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  • Profile picture of the author Andy Fletcher
    That's correct. The US uses double reporting for much of its tax law. Ie you report that you paid someone $XYZ and they report that they received it. Hence the 1099 form.

    In the UK we just use single reporting so it's just down to the affiliate to record what they were paid. Although obviously you need to record that you paid them to avoid paying tax on the amount received.

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  • Profile picture of the author Dietriffic
    This is great guys. I love this place.

    I can almost imagine what would have happened if I tried to call Inland Revenue to find this out.

    It would probably take several back and forth calls, only to be told I need to visit the an office to talk to someone about it.

    Thanks. That give piece of mind.

    I've noted your advice. Thank you.

    — Melanie (RD)

    Weight loss/fitness marketers earn 75% per sale with... The Fat Reversal Formula
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