One of my UK clients has just done some business with a US company as a one-off, providing services. The US customer has sent form W8-BEN to my client to complete and the assumption is that 30% withholding tax will be applied, which will be non-recoverable by my client.
I've only dealt with W8-BEN's when a UK individual receives US dividends, the individual effectively being able to reduce the tax from 30% to 15%.
Will the company suffer a 30% deduction? Is there a mechanism to reduce this to 15% or even to £nil? My research to date hasn't filled me with confidence as to what will actually happen.
If my UK client effectively loses 30% then he probably won't do business with the US again!
Any advice/experience would be appreciated.