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UK resident working 3 months US, tax question

UK resident working 3 months US, tax question

Old Nov 17th 2010, 8:03 am
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Default UK resident working 3 months US, tax question

I believe I posted this in the wrong section, apologies....

I am a UK resident for tax purposes and have just completed a 3 month contract in a Texas company. I was paid directly and nothing (not a dime) was withheld.

I believe the correct thing to do is file my taxes as I normally do in the UK on line, self assessment, and declare my foreign income. Then tell the IRS I am filing in the UK. I understand the IRS will assess me for any tax I may owe on top.

But I would like to look into this further - can anyone point me in the right direction in terms of websites, or guidelines?

While I don't have a limited company, I believe I can claim some expenses as I was working away from home, in the US and paid as a contractor. I was not staff.

I would also like to compare the overall tax that I would pay in the UK as compared to in the US if I could file here.

Thank you,

Susan W
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Old Nov 17th 2010, 8:39 am
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Default Re: UK resident working 3 months US, tax question

What visa are you on / were you using at the time?
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Old Nov 17th 2010, 10:55 am
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Default Re: UK resident working 3 months US, tax question

For starters, try looking at http://www.irs.gov/publications/p519/index.html, this is a link to the IRS tax guide for aliens, which is what they consider you to be. There is also a PDF version on their website which may be easier to read. It is a bit heavy going but persevere, it will address your situation.

PS you will also need to look at the tax treaty guide at http://www.irs.gov/publications/p901...link1000219371

Last edited by newXgate; Nov 17th 2010 at 11:06 am.
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Old Nov 24th 2010, 4:51 pm
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Default Re: UK resident working 3 months US, tax question

Originally Posted by Susan W View Post
I believe I posted this in the wrong section, apologies....

I am a UK resident for tax purposes and have just completed a 3 month contract in a Texas company. I was paid directly and nothing (not a dime) was withheld.

I believe the correct thing to do is file my taxes as I normally do in the UK on line, self assessment, and declare my foreign income. Then tell the IRS I am filing in the UK. I understand the IRS will assess me for any tax I may owe on top.

But I would like to look into this further - can anyone point me in the right direction in terms of websites, or guidelines?

While I don't have a limited company, I believe I can claim some expenses as I was working away from home, in the US and paid as a contractor. I was not staff.

I would also like to compare the overall tax that I would pay in the UK as compared to in the US if I could file here.

Thank you,

Susan W

Generally, you will owe US tax on any income earned while you were here. You'll need to file a 1040-NR tax return at the end of the year to report the income and pay the tax. You'll also need to report the income on your UK tax return, but you can claim relief for the US tax paid. Be aware that you may owe class 4 NICs in the UK too.
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