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Topic: USC/UK self employment taxes  (Read 1196 times)

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USC/UK self employment taxes
« on: February 01, 2013, 10:32:35 PM »
I have been searching to find out about self employment taxes when filing US taxes.  I have come up with conflicting info.  I pay NIC and self assessment here in the UK.  Looking at the tax publications, it looks like I will also be responsible for medicare and SS on the US tax form. Shouldn't I be paying one or the other and not both?  Surely I don't have to pay into the social care for both countries. 
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Re: USC/UK self employment taxes
« Reply #1 on: February 01, 2013, 11:04:59 PM »
I assume you are self employed in the UK. If so there's no FICA/Medicare to pay. I would imagine you just enter your UK wages on the 1040 and then either exclude them using FEIE or offset US tax with foreign tax credits.


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Re: USC/UK self employment taxes
« Reply #2 on: February 02, 2013, 08:01:24 AM »
I am self employed in the UK.  I work for a USC who will be sending me a 1099.  How can I get around paying Fica/Medicare with a 1099?
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Re: USC/UK self employment taxes
« Reply #3 on: February 02, 2013, 01:42:58 PM »
If you are self employed you should be billing your US client for your services, not receiving US wages.


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Re: USC/UK self employment taxes
« Reply #4 on: February 02, 2013, 03:22:22 PM »
That makes sense, thank you.  I didn't do that last year but I wonder if I can get by with sending him a bill for the yearly amount that I received? I could itemize it to show the amounts he paid. 
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Re: USC/UK self employment taxes
« Reply #5 on: February 02, 2013, 06:55:12 PM »
If you have not been invoicing it sounds suspiciously as if you might be an employee. Why has he been paying you? How did know how much if you did not invoice? How many customers do you have? Could you substitute other workers?


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Re: USC/UK self employment taxes
« Reply #6 on: February 02, 2013, 07:58:45 PM »
Definitely not an employee.  I do video editing and always get the same amount for each edit.  I finish an edit, I get paid via paypal. I have paypal records to verify all of the payments.  I could substitute other workers if I wanted to pay them.  I can work when ever I want, how ever I want.  And I could also work for who ever I want.  But this guy keeps me busy enough that I work for only him. 
If I were in the states, he would be giving me a 1099, which is why I was asking about having to pay SE taxes in the States as well as NIC and self assessment here.
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Re: USC/UK self employment taxes
« Reply #7 on: February 02, 2013, 08:49:55 PM »
Definitely not an employee.  I do video editing and always get the same amount for each edit.  I finish an edit, I get paid via paypal. I have paypal records to verify all of the payments.  I could substitute other workers if I wanted to pay them.  I can work when ever I want, how ever I want.  And I could also work for who ever I want.  But this guy keeps me busy enough that I work for only him.  
If I were in the states, he would be giving me a 1099, which is why I was asking about having to pay SE taxes in the States as well as NIC and self assessment here.


US citizens are liable to US income tax on their world wide income, but not payroll tax if they live and and are self employed outside the USA.

I assume you are UK resident and all the work is done in the UK. If so you have no FICA or Medicare liability. Just go ahead and do your US taxes and claim FEIE or take foreign tax credits.
« Last Edit: February 02, 2013, 08:53:14 PM by nun »


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Re: USC/UK self employment taxes
« Reply #8 on: February 02, 2013, 09:13:19 PM »
Thank you very much!   :)  It's all starting to make a lot more sense. 
13 Aug 08 Fiance Visa
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15 Mar 2010 filed for ILR based on bereaved partner
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