Does my wife need to pay UK taxes?

Hello all. Not sure if this may have already been answered elsewhere but I've trawled and found nothing so far. I'm a Brit who was smart enough to marry my lovely American wife 3 years ago. She's started working for a US based company via the internet and she will file a US tax return. Her salary is paid into her US bank account and (some of it) sent here via paypal. We're putting money aside for Uncle Sam's inevitable slice but my question is whether we will owe HMRC anything? Thanks!

She must file a tax return and HMRC will decide if she needs to pay tax.  She will not get taxed twice, so if she is obliged to pay tax in the US this will be taken into acocunt.  However, she will have to make NI contributions.  If she is only earning a low income these are voluntary but it is a good idea to pay them anyway.

She should contact HMRC for more info.  They may suggest that she registers as self employed.

Vicky

Let's start with the basics.  Her entire income is subject to UK tax because she is resident here.

Under the 2008 Finance Act she'd have to file a tax return for the current year in any case.

If she is employed under English law then she will pay tax as an employee.  If she is self-employed she may need to register for VAT even though her supplies are exempt from VAT.

The company paying her will doubtless want to take advice to ensure that she does not constitute a permanent establishment of the US entity in the UK.

Thanks to both for the speedy replies! That's helpful.  I'll have a chat with my local office today.