I might spend a month in London soon, consulting for a company based in Isle of Man. I would continue to consult for them after my return.
1) I believe any pay from the above work would be subject to US taxes, but not UK taxes, or at least not any that I'd be responsible for. Correct?
If I like London - which seems unlikely, since I hate rain, but who knows - I might return and work for a longer period, anywhere from six months to a couple of years or more. My salary would be well over US$80000/year.
2) The UK general income tax is 40%. Are there any other substantial taxes that I should know about? I mean, in the US we have a relatively low federal income tax, but then you get slammed with state tax and Social Security and Medicare and countless other things, the overall tax burden is much higher. Approximately what should I expect in total tax burden?
3) I know there's an exemption from US tax for the first 80k earned overseas. What happens after that - is my US tax reduced by some factor, or should I expect the credit to eliminate my US tax burden entirely?
I also make a substantial amount of money from poker and sports betting. Gambling income is not taxable in the UK, but it is in the US.
4) What happens to the gambling income? I'm guessing that UK doesn't tax it, therefore I don't have a credit to apply to my US taxes, so I'll pay normal US tax on it the same way I would if I were living in the US?
I know I should consult a professional accountant before I make any real decisions, but right now most of this is distant speculation... these seem like basic questions to which I should be able to find approximate answers on my own, but I'm drawing blanks. Any assistance, or pointers in the right direction, would be greatly appreciated. Thank you.
