DACS

[DHill]

I haven't had an Alamy email this year either (I'm in Australia). I think I'll let Alamy do it again - in spite of wanting to do it myself, as it's getting just too damn hard. Our tax office have told me it'll take 6 weeks or so to get my Residency Certificate (to reduce withholding tax). If you're not in UK, there's all this extra stuff. Now happy to give Alamy their cut.

The easy way to deal with withholding tax in Australia is just to declare it on your tax return. As long as the country in which it was withheld has a comprehensive tax treaty with Australia - and the UK has - the money just comes off your Australian tax bill or added to your refund. It does mean that you have to wait for the money, but the hassle factor falls to almost nil. I've been doing this for several years (not just with DACS). 

[NYCat]

 

I haven't had an Alamy email this year either (I'm in Australia). I think I'll let Alamy do it again - in spite of wanting to do it myself, as it's getting just too damn hard. Our tax office have told me it'll take 6 weeks or so to get my Residency Certificate (to reduce withholding tax). If you're not in UK, there's all this extra stuff. Now happy to give Alamy their cut.

The easy way to deal with withholding tax in Australia is just to declare it on your tax return. As long as the country in which it was withheld has a comprehensive tax treaty with Australia - and the UK has - the money just comes off your Australian tax bill or added to your refund. It does mean that you have to wait for the money, but the hassle factor falls to almost nil. I've been doing this for several years (not just with DACS). 

 

 

I wonder if this would work in the USA. Last year I just let the 20% go in order to avoid the time (and expense) involved in getting excused. Does DACS give you a statement if you ask for it? Another thing to think about is bank fees. The way Alamy sends my money I have no fee to my bank. DACS sends a wire transfer and I paid $15 for that.

 

Paulette

[tarsierspectral]

 

 

I haven't had an Alamy email this year either (I'm in Australia). I think I'll let Alamy do it again - in spite of wanting to do it myself, as it's getting just too damn hard. Our tax office have told me it'll take 6 weeks or so to get my Residency Certificate (to reduce withholding tax). If you're not in UK, there's all this extra stuff. Now happy to give Alamy their cut.

The easy way to deal with withholding tax in Australia is just to declare it on your tax return. As long as the country in which it was withheld has a comprehensive tax treaty with Australia - and the UK has - the money just comes off your Australian tax bill or added to your refund. It does mean that you have to wait for the money, but the hassle factor falls to almost nil. I've been doing this for several years (not just with DACS). 

 

 

I wonder if this would work in the USA. Last year I just let the 20% go in order to avoid the time (and expense) involved in getting excused. Does DACS give you a statement if you ask for it? Another thing to think about is bank fees. The way Alamy sends my money I have no fee to my bank. DACS sends a wire transfer and I paid $15 for that.

 

Paulette

 

Same here.  I just let them have 20% and $15 wire transfer fee.  I'll e-mail DACS to find out how to avoid the tax.

[DHill]

Paulette and Tarsier - I've received a tax statement from DACS each time they've withheld tax from my payments, and that's without asking. If I remember correctly, it comes a month or two after the payment is made. 

 

I can't answer whether the claiming procedure is as easy in the USA as it is in Australia, but I do know that the tax treaty arrangements apply between Australia and both the UK and the USA, so there's a good chance they apply between the USA and UK, too. Here, you just complete an extra box on your tax return labelled 'foreign income tax offsets' - and of course have to have the paperwork to back it up in the event of an audit. And you have to remember to include the tax paid as part of your total gross income, too. 

[NYCat]

Hmmmm. I didn't receive a tax statement last year. You guys in Oz are still more connected to the old country, I believe. We had a very rambuctious separation. That may make a difference.  I use an accountant and last year I didn't think to ask her about it. I did look up forms I would need to get and file with DACS but just didn't bother. Someone on the Forum mentioned a fee and I think it was about $80 to the US government. It could be worth doing if we are continuing to claim year after year. We'll see what Tarsier discovers.

 

Paulette

[Guest]

AFAIK, you need one of these http://www.irs.gov/Individuals/International-Taxpayers/Form-6166---Certification-of-U.S.-Tax-Residency to deal with withholding tax.

 

The fee may make this a questionable course of action, as opposed to putting the tax on your tax form.

 

Just to annoy our American cousins, the same residency certicate from HMRC (UK tax peeps) is free - I needed one for a certain Spanish agency.  Now what's that about the land of the free

[NYCat]

Oh Yikes. I can see this is the sort of thing I would want my accountant to do for me. I think I will proceed as I did last year and figure the 20% will go to give services to my nice British colleagues. I shall make a note to ask my accountant next year and see if it seems worth it at this point. Eventually I assume it would be as the sales pile up.  

 

Paulette

[cbimages]

Thanks DHill, but I have my affairs structured in such a way that I currently don't need to lodge an income tax return as other funds received are tax exempt. Therefore, I lose all tax withheld. Unless, of course, I want to start lodging an ITR again.....but it's such a lot of work for the few dollars. Hence my decision to let Alamy do it.

[Cryptoprocta]

After I'd sorted out my relevant Alamy files, I realised that I probably have qualifying sales from elsewhere, so I've been googling and found several more book credits.

I know that from Alamy I should only note my UK and Worldwide sales.

I'm seeing quite a few credits via Google Books which are American publications (etc) but which are available on e.g. Amazon.co.uk.

 

If they're available directly, new, from a UK source, does that automatically make them qualify?

 

How about the simple fact that they're listed on Google.co.uk?

 

TIA

No idea why I haven't done this before!

[Guest]

After I'd sorted out my relevant Alamy files, I realised that I probably have qualifying sales from elsewhere, so I've been googling and found several more book credits.

I know that from Alamy I should only note my UK and Worldwide sales.

I'm seeing quite a few credits via Google Books which are American publications (etc) but which are available on e.g. Amazon.co.uk.

 

If they're available directly, new, from a UK source, does that automatically make them qualify?

 

How about the simple fact that they're listed on Google.co.uk?

 

TIA

No idea why I haven't done this before!

No, they have to be published in the UK. I'm not even sure that worldwide counts unless there is a definite UK publication. DACs are quite clear that it's Books/mags published, not just available, in UK.

[Cryptoprocta]

 

After I'd sorted out my relevant Alamy files, I realised that I probably have qualifying sales from elsewhere, so I've been googling and found several more book credits.

I know that from Alamy I should only note my UK and Worldwide sales.

I'm seeing quite a few credits via Google Books which are American publications (etc) but which are available on e.g. Amazon.co.uk.

 

If they're available directly, new, from a UK source, does that automatically make them qualify?

 

How about the simple fact that they're listed on Google.co.uk?

 

TIA

No idea why I haven't done this before!

No, they have to be published in the UK. I'm not even sure that worldwide counts unless there is a definite UK publication. DACs are quite clear that it's Books/mags published, not just available, in UK.

 

Thanks. Alamy definitely counts worldwide as eligible, I counted both UK and Worldwide book/mag sales to get the same total as they emailled me, and the split is roughly equal in my sales.

For my other finds, I'll stick to UK publishers, though that cuts over 50%.

[Guest]

 

 

After I'd sorted out my relevant Alamy files, I realised that I probably have qualifying sales from elsewhere, so I've been googling and found several more book credits.

I know that from Alamy I should only note my UK and Worldwide sales.

I'm seeing quite a few credits via Google Books which are American publications (etc) but which are available on e.g. Amazon.co.uk.

 

If they're available directly, new, from a UK source, does that automatically make them qualify?

 

How about the simple fact that they're listed on Google.co.uk?

 

TIA

No idea why I haven't done this before!

No, they have to be published in the UK. I'm not even sure that worldwide counts unless there is a definite UK publication. DACs are quite clear that it's Books/mags published, not just available, in UK.

 

Thanks. Alamy definitely counts worldwide as eligible, I counted both UK and Worldwide book/mag sales to get the same total as they emailled me, and the split is roughly equal in my sales.

For my other finds, I'll stick to UK publishers, though that cuts over 50%.

 

 

Alamy also said last year that overseas contribs couldn't make direct claims....... .......until it was pointed out to them that they were pretty obviously wrong. Sorry but untill they provde the evidence that worldwide territory includes a UK publication, I'm not using any for my claim. TBH, it's easy for me to say that since I'm just about maxed out with other agencies.

[spacecadet]

I just send a spreadsheet of all sales. DACS can decide what's eligible but in my book 'worldwide' is  not the same as 'ROW'.

[tarsierspectral]

Oh Yikes. I can see this is the sort of thing I would want my accountant to do for me. I think I will proceed as I did last year and figure the 20% will go to give services to my nice British colleagues. I shall make a note to ask my accountant next year and see if it seems worth it at this point. Eventually I assume it would be as the sales pile up.  

 

Paulette

OK, Here is the answer from DACS about taxes:

 

Many thanks for your email.

 

If you live outside of the UK, DACS are required by the UK tax authority HMRC to deduct the standard rate of tax from payments we make to you. The standard rate of tax is currently 20%.

 

However, there are a number of countries who have tax agreements with the UK which allow their tax paying residents to apply for double taxation relief. The US is one of these countries and residents are able to benefit from full UK tax relief provided they successfully apply for relief. I have attached our Declaration of Residency form to this email which details how you can apply for tax relief, the process of which is as follows:

 

1. Complete the relevant HMRC form which can be found at https://www.gov.uk/tax-uk-income-live-abroad/taxed-twice and send it to the tax authority in the country where you reside. The tax authority will then process and verify that you are a tax paying resident and either send the verified form onto HMRC on your behalf or they will send it back to you, for you to then forward onto HMRC directly.

2. HMRC will then process the application and provided it is successful, they will write to you and to DACS notifying us that we can apply the relevant treaty rate to your royalty payments.

3. You will need to renew this form on its expiry so that DACS can continue to apply the correct treaty rate. Alternatively, if you already have a current tax authority residency certificate from your local tax authority please send this to us so we can verify if it is valid.

 

Please be aware that step 1. of the process varies dependent entirely on the tax authority where you reside. I am aware, having dealt with previous applicant, that the US tax authority IRS impose a fee of $85 to verify an application and require an additional form to be completed. Full details can be found in the guidance notes of the US/UK application form here: https://www.gov.uk/government/publications/double-taxation-united-kingdomunited-states-of-america-si-2002-number-2848-form-us-individual-2002

 

If you would like to apply for relief please return the attached Declaration of Residency form to us with the ‘I want to apply for relief’ box ticked. We will then put your payments on hold until such a time as HMRC inform us that your application for relief has been successful.

 

And lastly, please note that when we issue payments and deduct tax we will also supply you with a certificate alongside your statement called an R185 form. This form details any deduction of tax we have made.

 

Thanks again and please let me know if you have any other queries.

[NYCat]

Oh, yeah. This is why I'm prepared to donate 20% to the UK at this point. I will speak to my accountant when she does my taxes to see what she thinks about it. Thanks for posting this, Tarsier. I finally looked up your name. You are even more adorable than a bush baby.

 

Paulette

[spacecadet]

I've just had the usual email from DACS saying all's well. They are very conscientious.

[fotoDogue]

Did any Alamy contributors based in United States receive DACs letter this week?

I think I qualify again, but haven't received email.

- Ann

 

I just received email from DACs today. The only time I've seen anything about DACs is on the Alamy forums so I'm a bit confused.

 

According to the email I have 87 eligible images from 2014 which is more than the number of Alamy sales I had last year. I'm also confused as to why Alamy is reporting my sales to a third party. Is DACs somehow an Alamy partner?

 

It gives me the option of applying indepently or through Alamy. Is there anything in the new contract indicating I need to do one or the other? Maybe I need to contact Member Services.

 

fD

[spacecadet]

The number is cumulative so once a licence is sold it counts in all subsequent years.

Alamy isn't reporting your sales-what makes you think so? It will only do so if you ask Alamy to make your submission and take its 50% commission. It's your choice.

[John Mitchell]

No tax withheld for Canadians, at least not last year. Don't know why, but I'm not complaining.

[M.Chapman]

 

Did any Alamy contributors based in United States receive DACs letter this week?

I think I qualify again, but haven't received email.

- Ann

 

I just received email from DACs today. The only time I've seen anything about DACs is on the Alamy forums so I'm a bit confused.

 

According to the email I have 87 eligible images from 2014 which is more than the number of Alamy sales I had last year. I'm also confused as to why Alamy is reporting my sales to a third party. Is DACs somehow an Alamy partner?

 

It gives me the option of applying indepently or through Alamy. Is there anything in the new contract indicating I need to do one or the other? Maybe I need to contact Member Services.

 

fD

 

It sounds like the email that Alamy sends out. Are you sure it's from DACs? (Look at the domain).

[fotoDogue]

My mistake. For some reason Apple Mail isn't showing the full address anymore.

 

Yes, it's DACsPayback@Alamy.com

 

Thanks!

 

fD

[Zrw]

This DACS payback is good idea if you are prepared to let Alamy do it and including the Dacs cut you will only get back less than 40% owed to you. Dacs take an 18% cut of the original money, then Alay cut 50% from that. No wonder they are all eager to get us signed up. I think they have us by the googlies to be honest both organisations profiteering from the artist. 40% is a joke.

[spacecadet]

You don't have to let Alamy do it but if you do you pay the usual commission specified in your contract- remember tthe contract? The one you signed?

DACS are not profiteering, by definition. They are a non-profit collecting society and only deduct their running costs.

If you think you could negotiate your own licensing agreements with the thousands of organisations DACS deal with, good luck to you, but I'd rather be paid £100/hour for filling in a very simple form.

It's free money you couldn't make yourself. If you don't claim, the joke's on you, I'm afraid.

[Craig Yates]

You don't have to let Alamy do it but if you do you pay the usual commission specified in your contract- remember tthe contract? The one you signed?

DACS are not profiteering, by definition. They are a non-profit collecting society and only deduct their running costs.

If you think you could negotiate your own licensing agreements with the thousands of organisations DACS deal with, good luck to you, but I'd rather be paid £100/hour for filling in a very simple form.

It's free money you couldn't make yourself. If you don't claim, the joke's on you, I'm afraid.

+1

The process is simple to do yourself. I cannot see a single reason to let Alamy do it for you.

 

Regards

Craig

[Doc]

I have tried to do it myself this year (Alamy did it for me last year). Getting the ISBN numbers for 3 books was OK using Google Books,  but I couldn't do it for magazines which they said they also wanted 3 - I have e-mailed DACS a copy of the Alamy .csv file from which I have removed all the inappropriate sales (foreign, newspaper and editorial websites etc) - is that likely to be enough for them?

 

Kumar