social security for self-employed resident in UK?

Hi
This has been touched on before so forgive me but I'm looking for clarification.
I'm the UK spouse  of a USC resident in the UK...for better or worse we file married filing jointly. As of 2011 I became self-employed. My US-based accountant is saying I must owe Social Security and is not filing our 2011 return because of this. I've been told previously on this forum that since both I and the business are UK based there is no SS liability in the US, but the accountant wasn't buying this. He says if I'm not liable for SS there must a form to submit but he cannot find out which form.
Can anyone on here please help out and send me a reference I could send to him to expedite this return. We're under IRS audit for 2010 so late filing 2011 is not looking good at this point.
many thanks.

Again have to raise concerns that your US accountant doesn't know what he is talking about.  He has already cost you money and an audit.

Yes he is wrong. The fact that he even thinks you would be liable is really shocking.  No there isn't a form to file.  He needs to read up on the US/UK Totalization Agreement but I don't expect he will get it even then because this is an extremely basic issue.

Please reconsider firing this guy before he gets you in an even bigger mess.

I was actually just looking through old posts and we have discussed previously.

http://talk.uk-yankee.com/index.php?topic=75739.msg1037361#msg1037361

"Certificates for self-employed people
If you are self-employed and would normally have to pay Social Security taxes to both the U.S. and the U.K. systems, you can establish your exemption from one of the taxes by writing to:

If you reside in the United States, the Social Security Administration at the address in "Certificates for employees" section; or
If you reside in the United Kingdom, Inland Revenue at the address in "Certificates for employees" section."

is this for UK self employeds also? maybe this was what the acountant was talking about? is there a need to show proof of SS payments in the UK?

is this for UK self employeds also? maybe this was what the acountant was talking about? is there a need to show proof of SS payments in the UK?

No you do not need to show proof of SS payments in the UK on a US income tax return.  No a certificate is not typically included or required.

Of course there's no form because there's just no US FICA due on the income you get from being self-employed in the UK. The SSA has nothing to do with you or your business and for that matter nothing to do with your husband if he works for a UK business. There is the certificate of coverage, but I thought that was mostly for if you needed to use payments made in one country to help claim benefits in the other.

Your US accountant sounds completely incompetent and unable to handle the international aspects of your situation. Get a new accountant.

Again have to raise concerns that your US accountant doesn't know what he is talking about.  He has already cost you money and an audit.

Yes he is wrong. The fact that he even thinks you would be liable is really shocking.  No there isn't a form to file.  He needs to read up on the US/UK Totalization Agreement but I don't expect he will get it even then because this is an extremely basic issue.

Please reconsider firing this guy before he gets you in an even bigger mess.

My US CPA has already said she does not want to get involved in international taxation issues. Our financial adviser was also not willing to get involved and could only refer us to a small local law firm who do not seem to have much international experience.
Fair enough, but where do you find a US based tax adviser who knows about this stuff? Without having to pay an arm and a leg.

Fair enough, but where do you find a US based tax adviser who knows about this stuff? Without having to pay an arm and a leg.

Here are some to consider in the UK and the US

http://britishamericantax.com/
http://www.towertax.com/
http://www.americantaxreturns.co.uk/
http://www.stephenasher.com/
http://www.britishexpatstax.com/
http://www.taxesforexpats.com/index.html
http://www.greenbacktaxservices.com

Thanks, nun.

so, my US based accountant's incompetence has already been established, as of today he says I still must show a certificate of paying SS in the UK, and when I offered my statement of NI he said, but NI is not the same as SS so now you owe SS, to which I said, but I'm the UKC and the business is UK based, if it was my USC husband I would understand, but it's just additional income on the tax return, meanwhile he's holding up filing the 2011 return becoz he can't find an answer to the SS question!
This is someone who files for many people in the UK (mostly my friends who recommended him, tricky situ), but he's getting us in hot water with the IRS. I really appreciate the advice I've been given on here, but to be honest, it's just not an easy situation. The big international firms that are being recommended charge serious money, especially to sort out a mess....our friendly if incompetent accountant has allowed us to pay him ad hoc, when the tax credit arrives. Right now the student loan is going into default, there is no spare money here to pay the serious money involved in having another accountant look over the matter, and the IRS audit (see my other recent posts) has just got complicated with the lack of 2011 filing. basically we have 4 weeks to file an appeal.....even if we could come up with the money for  anew accountant, how does one revoke a power of attorney?

Why can't you file the 2011 return yourself?