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Can't create Individual account - UK tax status defaults to business

JLC
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# 1
JLC
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I noticed when I tried to set up Billing that if I select my location as United Kingdom the next page defaults my tax status to Business. There is no way to change this. I emailed AdWords Support and they said:

 

''I regret to inform you that effective, 22 October 2014, the advertisers will no longer be able to change the VAT status from Business to Non Business on their accounts, as a result of our policy amendment.''

 

I had never previously set up billing or registered as a business.

 

I then created a new Google account and registered for AdWords. At no point was I asked to choose between Individual (non-business) or Business. Again, when I tried to set up billing and selected UK it defaults to Business. If I go back and select the United States as billing location, the option to choose between Individual and Business appears on the next page. So why don't people in the UK have the option?

1 Expert replyverified_user

Re: Can't create Individual account - UK tax status defaults to busine

[ Edited ]
Rising Star
# 2
Rising Star

Hi JLC,

 

Welcome to the Community!

 

Earlier during account set up, there was an option to select between Personal and Business. This was shown as 'Use AdWords for business purposes'. Selecting NO would create a personal account and YES would create a business account. However, as per the email you've received from Google, this no longer seems to be an option available, at least externally.

 

I'd like to ask here, if your advertising goals are towards profits or not. It is this factor which decides the nature of your account as Business or Personal. Google says: 

 

Choosing yes means that you'd like to see an economic benefit from your advertising, such as increased revenue, sales, or signups. Most advertisers -- including affiliates, sole traders, self-employed merchants, partnerships, and others -- use AdWords for business purposes.

 

If your objective is economic benefit, I'd suggest going with the default option - Business. More about UK taxation for AdWords here.

 

Have a great year ahead Smiley Happy

 

Cheers,

Sumanth

Sumanth Sridhar

Re: Can't create Individual account - UK tax status defaults to busine

JLC
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# 3
JLC
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Hi Sumanth,

I've created a new account but at no point was I asked if I was using it for business purposes.

I've also had a reply from AdWords support who say:

''I would like to inform you that the Google AdWords does not offer or facilitate personal accounts (Non- Business) anywhere in the world. You can create the account with Google AdWords strictly for business purposes only.''

But if I select United States as the location of my billing address I am asked to choose between an individual or business account type.

 



I'm not a business, I only want to use AdWords to learn about the product and perhaps create adverts for my non-profit personal blog. How can I do this in the UK?

Re: Can't create Individual account - UK tax status defaults to busine

JLC
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# 4
JLC
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Re: Can't create Individual account - UK tax status defaults to busine

Rising Star
# 5
Rising Star

Thanks for the details.

 

From what I've seen, accounts signing up as personal (any country) would be changed to Business if the website or blog's objective is economic benefit. To use AdWords for non profits, you'll have to apply for Ad Grants.

 

Speaking of UK accounts, I agree that the option was available earlier, but no longer apparently. As per the first response you've received from Google, this option seems to have been removed with the recent update to Google's policies. In your case, creating an AdWords account to experiment and learn is fine. But again, it doesn't fall under non profits, which makes it a business account. I'd like to ask here - Is there a problem in continuing with 'Business' as the account type?

Sumanth Sridhar

Re: Can't create Individual account - UK tax status defaults to busine

JLC
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# 6
JLC
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Google AdWords have said: 'AdWords is no longer offered to individuals in EU Member States.' It answers the question but it's different to the answer in their previous email.

The problem is, if an individual sets up billing as a business then spends money in their account they won't have paid tax on it. Individuals would have to register to pay tax to the government by self-assessment and file their tax statement every year the same way a self-employed person would. Which is a bit odd and time consuming for anyone to do for potentially a few pence worth of tax each month. Most people won't bother. I don't want to use AdWords as a business if I'm not running a business.

Re: Can't create Individual account - UK tax status defaults to busine

Rising Star
# 7
Rising Star
That's fair on your side Smiley Happy

I'd suggest speaking to the support team on this. You can request a call back to explain your concern and see if they can provide a resolution.
Sumanth Sridhar

Can't create Individual account - UK tax status defaults to business

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# 8
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Hi there, 

 

I have the same issue as above. I am based in Ireland, and I want to advertise on Google AdWords as an individual. However, the payment option is automatically set up as a business, but i don't have a business. Did you find a solution ? 

 

Thanks a mill. 

Re: Can

JLC
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# 9
JLC
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Nope. I ended up abandoning the whole thing Smiley Sad