Thanks Guya and Jenn. Sorry for the extra Qs, but this is all so confusing to me, all these new terms. Forgive me for not understanding this as well as you guys; I've tried to read as much as possible, I've spent hours in fact, but it's still very confusing. But so far this has been very helpful.
(I am indeed self-employed here in the UK. The money I may earn from the US nonprofit would be paid in $US to my US bank account. I dont currently earn money in the US, so I'm not registered as self employed or anything there.)
So if I understand this correctly:
1) The HMRC Certificate is something that I need to give to the US employer, even if they just pay me as a consultant, in the event they are audited. And I also provide a copy to the IRS? So they can see I'm claiming this as UK income only.
2) And that the Certificate of Coverage is necessary to show the IRS, not only for work done for a US employer where the paycheck has taxes deducted already (which is not relevant for me); but ALSO for work done for a US entity where the payment check is just a gross amount for me as a consultant (which would be the case).
Is this all correct?
And
*Do I need to also attach the Certificate of Coverage to my UK tax forms? I would guess not, because I'd already be paying UK taxes.
*Guya, what is SET? In the UK, yes I do pay into Nat Insurance already of course.
*And here's another dilemma - re where the money actually would be. Since the US nonprofit would pay me into my US bank account only, is that relevant at all? Because I wouldnt be actually bringing the money into the UK ever. But yet I'd be taxed in the UK for it. It doesnt seem fair to pay the same taxes as someone who is a consultant for a US nonprofit who pays them in £ into a UK bank account. Thoughts?
Thanks!
