DACS payment

[Robert M Estall]

Alamy is using the term "Collecting Agency" because things may change soon. DACs is about to have competition (that's a kindly way of putting it) and Alamy may well be considering their options when things become clearer. So nothing "sneaky" on the part of Alamy in this regard

[John Walker]

If there are a large number of duplicate claims that have to be paid back into the 'DACS' pot, does this mean the money returned will be then paid out pro-rata to claimants?

[spacecadet]

I'd expect it to go into next year's pot. Suits me.

[Callie]

Since this is about DACS, can I vent about withholding tax again?

Last year I went through a whole lot of trouble getting DACS to reverse the UK tax they withheld.  In the end they paid it back to me rather than me claiming from HMRC. 

I filled in the form for HMRC, signed by the Canadian government to avoid withholding tax for at least the next 5 years.

Guess what?  DACS withheld my 50 bucks again.  Arghh!

 

Reimar I am going through the same just now - was your form also processed and approved by the UK tax office? Mine was still in process but DACS had said they wouldn't pay out to me until it was sorted, but they did so in error, were very apologetic, I just told them I would claim back myself. I never bothered claiming back last year but I'm now putting in a claim for the last two years together. 

[Reimar]

 

Since this is about DACS, can I vent about withholding tax again?

Last year I went through a whole lot of trouble getting DACS to reverse the UK tax they withheld.  In the end they paid it back to me rather than me claiming from HMRC. 

I filled in the form for HMRC, signed by the Canadian government to avoid withholding tax for at least the next 5 years.

Guess what?  DACS withheld my 50 bucks again.  Arghh!

 

Reimar I am going through the same just now - was your form also processed and approved by the UK tax office? Mine was still in process but DACS had said they wouldn't pay out to me until it was sorted, but they did so in error, were very apologetic, I just told them I would claim back myself. I never bothered claiming back last year but I'm now putting in a claim for the last two years together. 

 

I sent in the form last Spring, and frankly, don't remember getting any confirmation from HMRC.  You'd think half a year would be enough, but I don't know how best to follow this up.  I'll wait to hear from DACS.

 

Edit: oops, I did get a confirmation letter in June 2016, specifically mentioning that DACS was informed not to withhold tax.  DACS seems to have a big problem with this.

[hotbrightsky]

 

I would like to file my own DACS claim. I don't see why agencies should take a percentage of money intended for creators.

 

Is it possible to get the necessary information from Alamy or not in other people's experience? Do Alamy even have this information themselves?

They do and they won't give it to you. See my post no. 61.

Nonetheless it's possible to gather enough information yourself to make a meaningful claim.

 

 

Sorry, I still don't see how you have enough information to make a valid DACS claim without ISBN numbers. Am I missing something?

[famousbelgian]

 

Sorry, I still don't see how you have enough information to make a valid DACS claim without ISBN numbers. Am I missing something?

 

It is very easy to claim from DACS yourself, many forum members do it every year. Simply download all the sales data using the "Build a Downloadable Sales Report" button on your Alamy dashboard. You don't need ISBN numbers but obviously you need to delete from the spreadsheet any sales that are not eligible for the claim. Then use the results in the adjusted spreadsheet to put your claim together. Send a copy of the spreadsheet as backup to DACS by email. That's it.

 

Claims for TV usage are more tricky as Alamy don't provide enough information in the spreadsheet. For that reason, I let Alamy claim for the TV usages. There is no problem splitting the claim in two parts.

 

Marc

[spacecadet]

 

 

I would like to file my own DACS claim. I don't see why agencies should take a percentage of money intended for creators.

 

Is it possible to get the necessary information from Alamy or not in other people's experience? Do Alamy even have this information themselves?

They do and they won't give it to you. See my post no. 61.

Nonetheless it's possible to gather enough information yourself to make a meaningful claim.

 

 

Sorry, I still don't see how you have enough information to make a valid DACS claim without ISBN numbers. Am I missing something?

 

DACS know we can't get the ISBN numbers so they accept the info we can give.

[Reimar]

My headaches with DACS continues.  In spite of my letter from HMRC directing DACS to make payments WITHOUT deduction of UK income tax, they have withheld 10%.

That's better than 20%, but it was always 0%, until now.

This is a first for me.  Anyone else making a direct application (especially in Canada) have the same?

 

I've sent the Canadian government an e-mail asking for their reaction.  I can't make heads or tails out of the treaty (Article 12):

http://www.fin.gc.ca/Treaties-Conventions/UK_-eng.asp

[Bill Brooks]

My headaches with DACS continues.  In spite of my letter from HMRC directing DACS to make payments WITHOUT deduction of UK income tax, they have withheld 10%.

That's better than 20%, but it was always 0%, until now.

This is a first for me.  Anyone else making a direct application (especially in Canada) have the same?

 

I've sent the Canadian government an e-mail asking for their reaction.  I can't make heads or tails out of the treaty (Article 12):

http://www.fin.gc.ca/Treaties-Conventions/UK_-eng.asp

 

 

No headaches, is why I have Alamy collect it for me.

[John Mitchell]

My headaches with DACS continues.  In spite of my letter from HMRC directing DACS to make payments WITHOUT deduction of UK income tax, they have withheld 10%.

That's better than 20%, but it was always 0%, until now.

This is a first for me.  Anyone else making a direct application (especially in Canada) have the same?

 

I've sent the Canadian government an e-mail asking for their reaction.  I can't make heads or tails out of the treaty (Article 12):

http://www.fin.gc.ca/Treaties-Conventions/UK_-eng.asp

 

Reimar, please pardon the dumb question, but how did you find out that DACS withheld 10%? Did you receive a "hard copy" of the transfer details in the mail? I haven't yet.

 

The funds landed in my bank account in CAN funds -- almost $400 this year, which came in handy -- with no info about deductions, etc. Last year 0% was withheld.

[Reimar]

Yes John, the DACS payback statement came in the mail over the holidays showing they withheld 28.26 out of 282.60 pounds.  I don't get to claim for many uses that are RF (a majority of my port), but since many RF sales are now iQ, I figure I'm ahead claiming myself.

Combined with last year's withholding of 20%, I think they're out to get me.

[Jampham]

I live in the U.S.A and also realized my DACS payment had taxes withheld! Nearly 20% for me...115 pounds and 23 pounds withheld. Also received the mailed statment over the weekend. I have emailed DACS to see if that amount can be collected. We'll see...

 

Jamie

[John Mitchell]

Yes John, the DACS payback statement came in the mail over the holidays showing they withheld 28.26 out of 282.60 pounds.  I don't get to claim for many uses that are RF (a majority of my port), but since many RF sales are now iQ, I figure I'm ahead claiming myself.

Combined with last year's withholding of 20%, I think they're out to get me.

 

That's odd. I just double checked my records, and nothing was withheld last year. Hopefully my 2016 statement will arrive soon. When it does, I'll let you know what the story is. DACS has been headache-free for me so far.

 

I deal with -- or at least used to -- an agency in Germany that has suddenly started withholding 10% from already very meagre payouts. So far I've been able to do nothing about it. German bureaucracy is a true nightmare. I've given up and just stopped submitting images. Ain't worth the effort.

[NYCat]

I live in the U.S.A and also realized my DACS payment had taxes withheld! Nearly 20% for me...115 pounds and 23 pounds withheld. Also received the mailed statment over the weekend. I have emailed DACS to see if that amount can be collected. We'll see...

 

Jamie

 

In the USA it is rather difficult to get exempted and costs, as I remember, $80 just to to apply to our government. I think you also only get a few years exemption at a time. Sorry I forget the details but it seemed not to be worth it until such time as I was getting a large amount from DACS. I am now just letting Alamy do it. Not as lucrative but certainly easier. Sometimes I let myself off the hook of getting as much money as possible.

 

Paulette

[Bill Brooks]

Not as lucrative but certainly easier. Sometimes I let myself off the hook of getting as much money as possible.

 

Paulette

 

 

 

Good idea Paulette:

 

If you always try to get every last penny off the table, you end up spending your entire time trying to get every last penny off the table.

[Jampham]

 

I live in the U.S.A and also realized my DACS payment had taxes withheld! Nearly 20% for me...115 pounds and 23 pounds withheld. Also received the mailed statment over the weekend. I have emailed DACS to see if that amount can be collected. We'll see...

 

Jamie

 

In the USA it is rather difficult to get exempted and costs, as I remember, $80 just to to apply to our government. I think you also only get a few years exemption at a time. Sorry I forget the details but it seemed not to be worth it until such time as I was getting a large amount from DACS. I am now just letting Alamy do it. Not as lucrative but certainly easier. Sometimes I let myself off the hook of getting as much money as possible.

 

Paulette

 

Thanks for the info Paulette! I won't bother trying to get the withholding back.

 

Jamie

[John Mitchell]

Yes John, the DACS payback statement came in the mail over the holidays showing they withheld 28.26 out of 282.60 pounds.  I don't get to claim for many uses that are RF (a majority of my port), but since many RF sales are now iQ, I figure I'm ahead claiming myself.

Combined with last year's withholding of 20%, I think they're out to get me.

 

Reimar, I contacted DACS, and they e-mailed me my 2016 summary. No funds were held back (same last year).

[Reimar]

Thanks again John.  There was a change in the tax treaty in 2014.  The three relevant sections of article 12 are now as follows:

 

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such royalties may be taxed in the Contracting State in which they arise, and according to the law of that State; but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 10 percent of the gross amount of the royalties.

3. Notwithstanding the provisions of paragraph 2 of this Article, copyright royalties and other like payments in respect of the production or reproduction of any literary, dramatic, musical or artistic work (but not including royalties in respect of motion pictures and works on film, videotape or other means of reproduction for use in connection with television broadcasting) arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State.

 

That means that copyright royalties for artistic work (like ours) shall be taxable only in that other State (i.e., Canada).  DACS is being hard headed about this with me. Perhaps some non-lawyer got confused by section 2.  Still, why me, not you?

 

Reimar

[John Mitchell]

Thanks again John.  There was a change in the tax treaty in 2014.  The three relevant sections of article 12 are now as follows:

 

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such royalties may be taxed in the Contracting State in which they arise, and according to the law of that State; but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 10 percent of the gross amount of the royalties.

3. Notwithstanding the provisions of paragraph 2 of this Article, copyright royalties and other like payments in respect of the production or reproduction of any literary, dramatic, musical or artistic work (but not including royalties in respect of motion pictures and works on film, videotape or other means of reproduction for use in connection with television broadcasting) arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State.

 

That means that copyright royalties for artistic work (like ours) shall be taxable only in that other State (i.e., Canada).  DACS is being hard headed about this with me. Perhaps some non-lawyer got confused by section 2.  Still, why me, not you?

 

Reimar

 

Because I'm such a great guy (sometimes)? Who knows. I mean, we're both nice Canadians. You don't deserve this.

[Callie]

My headaches with DACS continues.  In spite of my letter from HMRC directing DACS to make payments WITHOUT deduction of UK income tax, they have withheld 10%.

That's better than 20%, but it was always 0%, until now.

This is a first for me.  Anyone else making a direct application (especially in Canada) have the same?

 

I've sent the Canadian government an e-mail asking for their reaction.  I can't make heads or tails out of the treaty (Article 12):

http://www.fin.gc.ca/Treaties-Conventions/UK_-eng.asp

 

 

You could claim the tax back from HMRC - the same form you filled in for the tax treaty has a space for claiming back overpaid tax https://www.gov.uk/tax-uk-income-live-abroad/taxed-twice

Shouldn't be necessary of course, but it seems DACS made a few errors!

[Reimar]

Thanks Julie.  Last year I had the same option when DACS messed me up.  DACS fixed it in the end.  So I'll try waiting a while to see what DACS comes back with.  I don't want to have to go through this every year.

[digi2ap]

For contributors who let Alamy claim for the Alamy sales what do you do for other sales outside of Alamy or indeed (as in my case) for images that were sold prior to joining Alamy? I am presuming that two separate claims that don't include the same sales is OK.

[spacecadet]

For contributors who let Alamy claim for the Alamy sales what do you do for other sales outside of Alamy or indeed (as in my case) for images that were sold prior to joining Alamy? I am presuming that two separate claims that don't include the same sales is OK.

https://www.dacs.org.uk/for-artists/payback/frequently-asked-questions#FAQ274