If you’re a UK freelancer, Amazon seller, investor, or business owner earning income from U.S. sources, you may need an ITIN Number issued by the IRS.

The US–UK Tax Treaty gives British residents access to lower withholding tax rates on U.S. income like royalties, dividends, and digital service earnings. However, to take advantage of these benefits or get paid through platforms such as Stripe, Payoneer, Upwork, Fiverr, Amazon, Etsy, or AdSense, you’ll first need an ITIN.

At House of Bookkeepers, an IRS-Certified Acceptance Agent (CAA), we help UK residents apply for and obtain ITINs securely without mailing passports to the United States.

 

What Is an ITIN?

An ITIN is a nine-digit tax identification number (format: 9XX-XX-XXXX) issued by the Internal Revenue Service (IRS) for individuals who:

  • Need to file or report U.S. taxes.

  • Are not eligible for a U.S. Social Security Number (SSN).

🔍 What ITIN is not:

  • Not a U.S. work visa or immigration status.

  • Not a substitute for an SSN.

  • Not authorization to work in the U.S., but it’s required to receive payments legally from U.S. companies and digital platforms.

Why UK Freelancers and Business Owners Need an ITIN

Thousands of UK-based digital professionals and business owners rely on U.S. clients and platforms every year. Without an ITIN, they face automatic 30% withholding tax on payments from companies like Stripe, Amazon, Google, or Upwork.

With an ITIN, you can:

  • Submit Form W-8BEN (instead of W-9) to claim treaty benefits

  • Avoid 30% withholding on royalties, freelance earnings, and digital income

  • Prevent payment holds and verification delays on global platforms

  • Open U.S. bank accounts (some platforms may require ITIN)

  • File U.S. tax returns if needed (Form 1040-NR)

  • Build U.S. tax compliance history — useful for long-term business establishment

 

Who in the UK Commonly Needs an ITIN?

  • Freelancers, Creators & Digital Workers

Writers, designers, developers, and creators in the UK earning through Upwork, Fiverr, Stripe, Amazon KDP, Etsy, Payoneer, or Google AdSense often need an ITIN to:

    • File a W-8BEN form to avoid 30% withholding.

    • File a U.S. tax return (Form 1040-NR) for compliance and refunds.

    • Receive faster payments and maintain verified account status.

  • Property Investors

If you sell or rent U.S. real estate, the Foreign Investment in Real Property Tax Act (FIRPTA) requires withholding of 15% of the sale price. An ITIN allows you to file your U.S. return and claim a refund if too much tax was withheld.

  • Filing Jointly with a U.S. Spouse

If your spouse is a U.S. citizen or green card holder, you’ll need an ITIN to file jointly and qualify for family tax credits.

  • Amazon & E-Commerce Sellers

If you’re an Amazon UK seller or Shopify store owner selling to U.S. customers, an ITIN helps:

    • Validate your tax information on Amazon Seller Central or Stripe Atlas.

    • File necessary IRS documents like W-8BEN for reduced tax.

    • Integrate U.S. payment processors more smoothly.

  • LLC Owners & Entrepreneurs

If you own a U.S. Limited Liability Company (LLC), you may need an ITIN for IRS filings.
Documents usually required:

    • Articles of Organization

    • IRS EIN Confirmation Letter (CP575 Notice)

    • Operating Agreement (needed if your LLC has multiple members).

      • If your LLC is single-member, an Operating Agreement may not be required.

      • If it’s multi-member, it’s mandatory.

 

Benefits of Having an ITIN

  • File U.S. tax returns legally.

  • Avoid 30% withholding on freelance or digital income.

  • Claim refunds for overpaid U.S. taxes.

  • Apply reduced rates under the U.S.–UK Tax Treaty.

  • Stay compliant with FIRPTA for real estate sales.

  • Be included on a spouse’s or dependent’s U.S. tax return.

  • Open or connect business bank accounts, Stripe, or Payoneer.

  • Build long-term financial credibility in the U.S. for your business or LLC.

US-UK Tax Treaty Benefits

The US-UK tax treaty provides substantial savings for UK residents:

Income Type Default Rate Treaty Rate
Dividends 30% 5–15%
Interest 30% Often 0%
Royalties 30% 0–10%

To use treaty benefits, you need:

  • Valid ITIN

  • W-8BEN (freelancers/investors) or Form 8233 (certain researchers)

How to Apply for an ITIN from the UK in 2025

Step 1: Confirm Eligibility

Valid U.S. tax reason such as:

  • Filing a U.S. return

  • Claiming treaty benefits via W-8BEN

  • U.S. rental/sale income

  • Filing jointly with U.S. spouse

Note:

If you only need to submit W-8BEN for withholding relief, you may qualify under a treaty exception and may not need to attach a U.S. tax return.

Reason for Applying Description W-7 Box to Check Tax Return Required?
Filing a U.S. tax return Reporting freelance, investment, real estate, or other U.S. income b – Nonresident alien filing U.S. tax return ✅ Yes (attach Form 1040-NR)
Claiming tax treaty benefits via W-8BEN Avoiding U.S. withholding on platforms like Amazon, AdSense, Payoneer, Stripe, Upwork a + h – Treaty benefit exception ❌ No (treaty exception category)
U.S. rental or sale (FIRPTA) Property rental income or claiming refund on FIRPTA withholding b (if filing return) OR a + h (if claiming treaty exception) Depends
Filing jointly with a U.S. spouse Foreign spouse joining U.S. tax return e – Spouse of U.S. citizen/resident ✅ Yes (joint U.S. tax return)

Step 2: Complete Form W-7

The official IRS ITIN application form. Accuracy matters — small errors can delay or reject your filing.

Step 3: Gather Required Documents

  • Valid passport (scan copy works with a CAA; otherwise, IRS requires original or certified copy).

  • U.S. federal tax return (Form 1040 or 1040-NR), unless an exception applies.

  • Supporting documents (W-8BEN/W-9, U.S. income statements, property contracts, or scholarship letters).

Step 4: Apply Through a Certified Acceptance Agent (CAA)

With House of Bookkeepers, you don’t need to mail your passport. We verify your documents locally in the UK and submit your application securely to the IRS.

Why Use House of Bookkeepers (IRS CAA)?

✅ Passport stays safe — verified locally in the UK.

✅ Higher success rates and fewer rejections.

✅ End-to-end support: W-7 form, Certificate of Accuracy (COA), tax return, and submission.

✅ Official IRS authorization (listed CAA).

✅ Real-time updates until your ITIN approval letter (CP565) arrives.

✅ 100% Money-Back Guarantee if rejected due to our error.

ITIN Processing Timeline in 2025

  • Standard processing: 8–11 weeks.

  • Peak season (Jan–Apr): 13–16 weeks.

  • With House of Bookkeepers, we can usually retrieve your ITIN number within ~2.5 months by contacting the IRS, although the official letter (CP565) still takes the full processing time to arrive by mail.

Common Mistakes to Avoid

  • Submitting incomplete or inaccurate W-7 or W-8BEN/W-9 forms.

  • Using uncertified passport copies (if not applying through a CAA).

  • Forgetting to attach a tax return (unless exempt).

  • Mailing sensitive documents without proper verification.

  • Assuming ITIN grants work or immigration rights (it does not).

Quick FAQs – ITIN from United Kingdom

Q1. Can I apply for an ITIN from the UK?
Yes. With House of Bookkeepers as your IRS CAA, you can apply directly from the UK — no need to mail your passport.

Q2. Does the UK have a tax treaty with the U.S.?
Yes. The treaty lowers U.S. withholding taxes on dividends, royalties, and freelance income. You need an ITIN to claim these benefits via W-8BEN or W-9.

Q3. How will I know if my ITIN is approved?
The IRS issues Letter CP565 once your ITIN is assigned. We notify you right away.

Q4. Do I need a U.S. address?
A U.S. address is not mandatory. The IRS can send your ITIN letter directly to your foreign (non-U.S.) address as listed on your application. However, if you have a U.S. residential address or a mail forwarding service, you may use it for convenience and faster delivery.

Alternatively, we can also receive the letter at our address and send you a scanned copy by email.

Q5. How will you verify my identity?
We’ll ask you to provide a selfie of yourself holding the passport’s information page. This simple step confirms that the passport belongs to you and helps us complete your identity verification securely.

Apply with Confidence

At House of Bookkeepers, we make ITIN applications safe, professional, and hassle-free for UK applicants.

📍 IRS-Certified Acceptance Agent (CAA) – United Kingdom Service
🌍 Website: https://www.houseofbookkeepers.com

Start your ITIN application today — and enjoy the peace of mind that comes from full IRS compliance, faster refunds, and U.S.–UK treaty benefits.