Which name is to use on tax form?

Hi

I am about to register as self employed along with working full time as well. (I'm in a band making money, therefore I need to declare it.)

Since I've been married to my husband, I haven't officially changed my name (eg on passports, visas, driving license, etc). However I have changed my name at work (to include my married name as well as my maiden name), and I guess they have updated their records, so when I get my P60, it'll have both my names on it.

My question is that when I register as self employed, do I need to include my married name as well, or leave it off as I haven't officially changed it? Because on the form it asked me the date of when I changed my name and why.

I thought in the UK you don't have to 'officially' change you name, but I wonder how they know who you are if you are going by two different names.

Doesn't matter. In the UK they know who you are based on your National Insurance number. If you chose to use your married name then tell them your maiden name to avoid confusion. When they ask date, use marriage date, or whenever you started using that name.

Don't forget about SE tax in the US, although you'll be able to avoid it under the totalization agreement. You'll need to get a US/UK 1 to avoid paying it.

Does this still count if I've been in the UK since I was 16 - worked on an American base in the UK for a total of two days, then quit. Earned hardly anything. I read somewhere that I wouldn't need to pay any US taxes as I haven't earned enough and never worked there.

Bit ignorant regarding this. But have done some research.

Thanks for your help regarding my name!

Hi,

I assume you are a US Citizen, (otherwise why would you be posting here!). If so, then you are liable to file taxes in the US regardless of how long you've spent there (even if you've never been there!).

Usually, if you're living in the UK you will not need to actually pay US taxes, either because the Foreign Earned Income Exclusion (which excludes the first $91,500 of foreign earned income) or the Foreign Tax Credit (so if you've paid taxes in the UK, you can claim it as a credit in the US). Since UK taxes are (generally) higher than the US, most people won't ever need to pay US taxes. However, if you have UK-tax-free income (such as capital gains or interest in a ISA or SIPP) then there could be a US liability (since the Foreign Earned Income exclusion only covers earned income not savings/investment income).

Another exception is SE (Self Employment tax). Technically, the FEI or the FTC won't cover the SE tax (which is the equivalent of class 4 National Insurance here). However, there is a totalization agreement between the US and UK which means that if you're covered by one social security agreement, you don't need to pay for the other. Hence the need for the US/UK 1. More details here: http://www.ssa.gov/international/Agreement_Pamphlets/uk.html

Even though you may, due to the above, have no US tax liability, you are still required to file if you earned (if single) around $9350 (£5700).

However, if you are self employed, you'll need to file if you made at least $400 (£245), so you will probably need to file, with schedule C.

The good news is that you may be entitled to a refund (due to Making Work Pay etc).

In addition to all this, if you have or had $10,000 in a bank account outside the US at any stage, you'll need to file an FBAR (Foreign Bank Account Report).

Let me know if you need any more information, and good luck with the band

All the best

Andrew

Two additoinal items:
1. The form TD F 90-22.1 which Andrew mentions has a $10,000 limit is much wider than just bank accounts. It is for reporting all foreign bank and security accounts so could include ISAs, UK pensions and a host of other possible items.

2. If your band is a foreign partmership you will also need to file a foreign partnership return so may need specialist help on preparing this as well.

Two additoinal items:
1. The form TD F 90-22.1 which Andrew mentions has a $10,000 limit is much wider than just bank accounts. It is for reporting all foreign bank and security accounts so could include ISAs, UK pensions and a host of other possible items.

2. If your band is a foreign partmership you will also need to file a foreign partnership return so may need specialist help on preparing this as well.

Agreed. Wasn't intended to be a full list, but shareholders of ltds have also issues. Under the new FATCA starting next year, it will only get worse

Agreed. Wasn't intended to be a full list, but shareholders of ltds have also issues. Under the new FATCA starting next year, it will only get worse

FATCA starts from 1 January 2014 - so US Treasury still has time to write some rules.  Phew!!

FATCA starts from 1 January 2014 - so US Treasury still has time to write some rules.  Phew!!

Yes you're right. Delayed a year. But next year will (probably) start filing requirement for 8938, which will require declaration of interest in partnerships, Ltds, PFICs etc, even if not previously required on a 3520 etc. I have seen the draft form (http://www.irs.gov/pub/irs-dft/f8938--dft.pdf) but this could of course change.

Andrew