Self Employed trying to figure out taxes

Hi all,

I tried researching to find the answers before I posted but couldn't figure it out.

I'm self employed. I got married to a UK citizen last April and moved to the UK permanently in August. All of my clients are US based and I get paid via Paypal and put all of the money in my US bank account.

How do I figure out how to pay taxes in the UK? Do I still need to or do I just file US taxes?

Thank you.

Lulu - you are primarily subject to UK tax and NIC. The tax year has just ended; you'll want to register for self-assessment and prepare and file for 2018-19.  As you did not pay HMRC anything by 31 December 2018, you will not currently have any foreign tax credits to claim on the 2018 US return; but at least you'll be exempt from SET on your profits after August 2018.

I would add to Guya’s comments that the initial practical matters are to obtain a National Insurance number and Unique Tax Reference. The NINO and UTR will allow you to proceed with self-assessment filings.

Your first set of trading information will cover the period from commencement of residence in the UK to 5th April 2019.

HMRC produce exchange rate information which you can use to translate your earnings into sterling.

Your self-assessment will cover both income tax and self-employed National Insurance liabilities.

The details required by your self-assessment will depend upon the level of your turnover. This can be as little as three-line accounts: turnover, expenses and profits.

OK so then I should do my US taxes like normal and then do what I need in the UK?

Thank you for the guidance!

I'm in a similar situation with my official arrival in the UK on Feb of 2018 on a spousal visa. I've been working with US tax software to do my taxes, but I seem to owe social security (because I'm self-employed). I have a NIN and a UTR. Is this correct that I would owe social security the first year? Or every year?

I tried working with a US accountant, but she wasn't sure what to do and ended up giving it back to me to do. I had an accountant here do my UK return but he wasn't able to do the US one.

I've been itemizing every deduction for the US, something I thought I wouldn't have to do if my income is below a certain amount. Really, I don't know the answers. I've always done my own US tax return (been self-employed for 12 years) and used tax software to help me. But, it's asking questions that are unfamiliar.

Can you offer help or tell me where to turn?

Thank you!

From a US perspective you would report the business on Schedule C.  You may also need to file Form 8858 to report the existence of a Foreign Branch.  There is no US Self Employment Tax on income from the time you were covered buy Social Security in the UK.

From a US perspective you would report the business on Schedule C.  You may also need to file Form 8858 to report the existence of a Foreign Branch.  There is no US Self Employment Tax on income from the time you were covered buy Social Security in the UK.

Thank you! I may have more questions once I get the certificate and can file the return I did. Thank god for this forum!!