US Employee Working Online

Hi, I currently work online for two US Companies and am living in the UK with my husband.
One of the companies that I work for pays via the ePassporte system so will be receiving my income into that account and the other pays directly into my UK Bank Account.

It would cost $50 to transfer from an ePassporte account to my UK Bank Account so would be less expensive to withdraw the money using the VISA card Provided.

Would I be correct in thinking that all the income earned whilst living as a UK Resident is taxable in the UK and should be declared to the tax office for tax and National Insurance purposes?

Also, since I am no longer living in the US, does this income need to be filed there too?

Thanks for your help.

The US taxes on worldwide income for all of its citizens so you will have to file. However, if you make less than a certain amount (it changes every year), then you wont owe taxes.

Would I be correct in thinking that all the income earned whilst living as a UK Resident is taxable in the UK and should be declared to the tax office for tax and National Insurance purposes?

I think you'll have to at least register as self employed (http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm) to pay your taxes and NI contributions for work undertaken in the UK. You may wish to consider setting up your own limited company. If so, Businesslink is a good resource: http://www.businesslink.gov.uk.

I'd consult with a UK accountant to get the best tax advice for your situation: http://www.icaew.com   

Good luck! 

I was wondering if someone could answer this question. My company in the US wants to hire me as a consultant but I will be living in the UK. My income will be deposited in a US Bank account. Will my company in the USA have to pay any taxes to the UK? I know I will have to pay taxes on that in the USA but not sure how that income translates to the UK taxes.

I second this question. I may be doing a bit of freelance work w a US small non-profit (not a corporate company), which I'd do here in the UK, but the money would be deposited into my US bank account.  It would be freelance income, ie I'm responsible for the taxes, and I would guess they'd send me a 1099 form at the end of the year.

My understanding is that any work done by us in the UK is declarable and taxable in the UK (you have to register as self-employed in the UK). That's fine.

But I also dont know if one would ALSO have to declare this income as "US income" on IRS forms.

I DO understand the concept that any money from work done in the UK is considered "worldwide income" by the US. But my question, like yours, is whether this kind of money is NOT considered exempted worldwide income by the IRS, but "US income", and thus taxable in the same way it would be if I'd earned it if I went to the US for a month and earned it.

Answers anyone?