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$150 Tax Withheld - A 30% Tax on Itch sales

A topic by Huw2k8 created 8 days ago Views: 69 Replies: 3
Viewing posts 1 to 3

Hello,

Just looked through some of my payments from Itch and noticed at least $150 gone to something marked as Tax Withheld on the payment report.

I don't think this is right, can anyone confirm this?

I'm not a US citizen and the UK tax rate is 20% for those earning more than £11000, and even then that's 20% so it seems rather high

Any advice would be awesome

Thanks

Huw

Looked into it further and it seems the money will be taken automatically unless I provide a tax number, however my income is quite low and registering to be self employed in the UK would be pointless. Is there anyway to not pay this tax if you don't have an individual tax reference.

Otherwise it seems to me that this is a very expensive toll of business via itch.io

The number has gone up to $250 total that's been held back with a new payout I just initiated and that's a significant amount of money being falsely withheld.

(+1)

So let's start with FAQ that no one adds to help me or anyone in itch staff.

Is your account a direct payment or collect-by-itch?

If your account is direct then you must handle all taxes, it is never recommended to use this feature for inexperience tax users.

If collect-by-itch you need to follow instructions to fill ITIN and then you fill out tax treaties.

Did you fill out incorrectly by saying you own a company or you do have a company but don't know how to fill it out?

By saying you own a company, you are to follow any additional taxes it may come with being a company. This is never recommended without a tax expert to help you. There are too many laws to follow when you become a company and selling games through the internet.

If you are not a company, you should fix it. I am assuming you are the only one with no other person, meaning you do not have a employee. Agreement/contracts are different matter. Partnership may be a reason for the tax but I do not know if you are in a partnership. So saying all this i am assuming you are working alone which under UK is called https://www.gov.uk/set-up-sole-trader

Even if you are in the UK, you still need to fill out the tax treaties because US requires it or you can lose a lot of money.

Moderator

I brought it up with our admins. The documentation issue, that is.