US Self-Employment Taxes

Hello,

Is it possible to be "excused" from paying US self-employment taxes if one is paying income tax and making National Insurance payments in the UK?  I have seen some references to the Totalization Agreement between the two countries and a vague suggestion in one of the IRS publications suggesting that getting letters from each government might take care of it, but haven't seen a definitive answer.  (I'm hesitating on throwing into the black hole of various government agencies if this isn't something people normally do.)

Thanks!

Judy

The general theory of any social security agreement is that one is normally covered under the rules of the place where one is ordinarily resident.

Thus a self-employed person who is resident in the UK is covered - only - under the rules of the UK.

You would therefore not owe US SET on income earned after coming to the UK, but would be liable for Class 2 & Class 4 NI.

You should have a certificate of coverage from the UKs HMRC stating that you are covered under the UK system from your arrival date to attach to your US return as evidence.