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Cashing US affiliate cheque in the UK, tax?

by TTYd
6 replies
Hi everyone,

I'm very new to IM and after following some amazing advice on this forum, I've just monetised one of my abandoned sites and will soon be receiving my first cheque from an American affliate company (in dollars).

I know very little about taxation and overseas earnings - will I have to pay this into my business account and therefore pay income tax on it? Or, can it safely and quietly go into my personal account and be exempt from tax?

Thanks in advance!
#affiliate #cashing #cheque #tax
  • Profile picture of the author rosetrees
    It's income, so sadly it's subject to income tax regardless of which account you pay it into.

    Your bank will charge you to cash the cheque and then you simply add the amount actually credited to your account to your books/spreadsheet/accounts software.

    At least, that's what I do.
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  • Profile picture of the author Menno Marketing
    I'm actually curious about this as well...
    I do IM activities in the Us but am located in Netherlands. No idea how the taxes work exactly
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  • Profile picture of the author TTYd
    Thanks for the fast response Rosetrees!
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  • Profile picture of the author Chri5123
    I have paid many dollar checks into U.K accounts and yes you still have to pay tax lol.

    Normally they are sent off for negotiation and then you pay tax on the UK pounds amount you receive.

    Assume it will be the same for you.

    Chris Jones
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  • Profile picture of the author Kavel
    Banned
    [DELETED]
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    • Profile picture of the author Richard Tunnah
      Yes tax is payable I'm afraid. One of the two certainities in life! As stated your bank will charge you an exchange fee and will have to send off the cheque to get it cleared. Depending on the bank they may give you the money on the premise that if it bounces you're liable or they may make you wait upto 6 weeks. I found both instances with halifax and lloyds (I know they're now the same bank!!) many years ago.

      Rich
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  • Profile picture of the author Robert Mangan
    TTYd,

    when you start making lots of money from US companies think seriously about getting an account in the US. You get an online interface so you can monitor your account and you'll also get a Visa debit card so you can withdraw funds from any ATM anywhere in the world.

    At least that way you won't pay fees to your bank each you receive a USD cheque. Also, Many US companies like Amazon will place funds direct to US bank accounts.

    Of course with a bank account in the US you are still required to inform the UK Inland Revenue that you have one and that you're earning profits in to a U.S. account.

    Robert
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