US/UK double taxation exemption help
#1
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Joined: Jan 2015
Posts: 6
US/UK double taxation exemption help
Hi,
I am a UK/USA dual national. I have lived in the UK all my life until 1st Jan 2015 when I relocated to New York.I am working as a freelance contractor for a UK company, getting paid in GBP into a British bank account.
I want to make sure I only pay tax in the US as I am a resident here. I have been looking into the forms for double taxation exemption. From what I can tell I need to fill in a UK/USA Double Taxation convention form (SI 2002 number 2428) from HMRC and USA form 8802 from the IRS to prove my residency.
Has anyone else been through this process? Does what I've detailed above sound correct? Does anyone have any further advice or guidance about how I can make sure to just pay tax where I'm a resident (New York)?
Many thanks!
I am a UK/USA dual national. I have lived in the UK all my life until 1st Jan 2015 when I relocated to New York.I am working as a freelance contractor for a UK company, getting paid in GBP into a British bank account.
I want to make sure I only pay tax in the US as I am a resident here. I have been looking into the forms for double taxation exemption. From what I can tell I need to fill in a UK/USA Double Taxation convention form (SI 2002 number 2428) from HMRC and USA form 8802 from the IRS to prove my residency.
Has anyone else been through this process? Does what I've detailed above sound correct? Does anyone have any further advice or guidance about how I can make sure to just pay tax where I'm a resident (New York)?
Many thanks!
#2
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Joined: Jul 2009
Location: Virginia
Posts: 475
Re: US/UK double taxation exemption help
Hi,
Make sure HMRC know you have moved to the US and are resident there.
The IRS will certify to HMRC that you are over here and you should then receive a letter from HMRC in due course acknowledging that.
I have found this man VERY helpful with my UK / USA tax issues. He's in NY, too, although I have done phone consults with him.
US - UK Tax Preparation and Advice | BritishExpatsTax.Com
Make sure HMRC know you have moved to the US and are resident there.
The IRS will certify to HMRC that you are over here and you should then receive a letter from HMRC in due course acknowledging that.
I have found this man VERY helpful with my UK / USA tax issues. He's in NY, too, although I have done phone consults with him.
US - UK Tax Preparation and Advice | BritishExpatsTax.Com
Last edited by YouWantFriesWithThat; Jan 22nd 2015 at 3:27 pm.
#3
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Joined: Jan 2015
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Re: US/UK double taxation exemption help
Thank you so much!
Yes, I need to fill in the form telling HMRC that I'm here but am waiting for my P45 from my old job so I can fill in those details.
Do you know how long the process should take? I.e. if I get started now should I be sorted by the time I need to pay my US tax in April?
Yes, I need to fill in the form telling HMRC that I'm here but am waiting for my P45 from my old job so I can fill in those details.
Do you know how long the process should take? I.e. if I get started now should I be sorted by the time I need to pay my US tax in April?
#4
Re: US/UK double taxation exemption help
If you only started working this month - 2015 taxes won't be due until April 2016.
Taxes for 2014 will be due this April.
Taxes for 2014 will be due this April.
#5
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Re: US/UK double taxation exemption help
But presumably I will owe some tax from Jan-Apr 2015? Or would that be paid in 2016?
#6
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Joined: Nov 2014
Posts: 238
Re: US/UK double taxation exemption help
Yes, you'll pay tax generally in the next tax year. So like I'm due to pay 2014 tax by April 15 this year.
If you are self-employed ( like me ) just don't underpay by too much or there's a penalty.
If you are self-employed ( like me ) just don't underpay by too much or there's a penalty.
#7
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Joined: Jul 2009
Location: Virginia
Posts: 475
Re: US/UK double taxation exemption help
USA tax years run Jan 1st - Dec 31st
So any liability you may have from Jan 20115 onwards would be due in 2016, afaik.
So any liability you may have from Jan 20115 onwards would be due in 2016, afaik.
#9
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Joined: Jan 2015
Posts: 6
Re: US/UK double taxation exemption help
Wow - thank you so much everyone for your helpful comments!
I have an accountant who's been helping me do my US tax returns from the UK, but will also check out the British Expats tax website posted above.
I have an accountant who's been helping me do my US tax returns from the UK, but will also check out the British Expats tax website posted above.
#10
Re: US/UK double taxation exemption help
You should have filed a P85 when you left the UK so HMRC can get your taxes adjusted.
As a US/UK dual citizen I hope that you are up to date with your US taxes as you should have been filing while in the UK.
If you are doing your work in the US you should not be taxed in the UK or be liable to UK payroll taxes or VAT. You will need to file taxes in the US as a sole proprietor and pay US self employment taxes. Being paid into a UK account seems strange if you are living and working in the US.
As a US/UK dual citizen I hope that you are up to date with your US taxes as you should have been filing while in the UK.
If you are doing your work in the US you should not be taxed in the UK or be liable to UK payroll taxes or VAT. You will need to file taxes in the US as a sole proprietor and pay US self employment taxes. Being paid into a UK account seems strange if you are living and working in the US.
#11
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Joined: Nov 2012
Posts: 902
Re: US/UK double taxation exemption help
You say you are freelance, but it sounds as if you might be employed; hopefully the engager of your services has taken advice on their own obligations.