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Topic: Tax on Self Employment for US Spouse in UK  (Read 1126 times)

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Tax on Self Employment for US Spouse in UK
« on: March 22, 2014, 12:59:13 PM »
I will be moving from the US to the UK with my spouse in July.   I currently have a small consulting business that I conduct primarily online, and I could probably continue to do this from the UK.  Would I be taxed in the UK on this income that was earned in the US? What other tax issues should I consider? 


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Re: Tax on Self Employment for US Spouse in UK
« Reply #1 on: March 22, 2014, 04:17:48 PM »
If you are resident in the UK and typing those keys in the UK then you will have to pay UK income and payroll taxes. The location of your clients doesn't matter....your location does. If you are a US citizen then you are also liable to US income tax, but FEIE or tax credits will defray that liability. When you do your Schedule C make sure that you don't get hit with US payroll taxes.
« Last Edit: March 22, 2014, 04:20:21 PM by nun »


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Re: Tax on Self Employment for US Spouse in UK
« Reply #2 on: March 22, 2014, 04:48:15 PM »
Thanks so much!  Very helpful info.  This forum is a marvelous asset!


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Re: Tax on Self Employment for US Spouse in UK
« Reply #3 on: March 23, 2014, 10:41:52 AM »
Follow up questions:   If I earn less than the personal allowance in the UK, do I still file a tax return there and pay into the NI?   And if I don't owe any taxes in the UK because I have earned less than the personal allowance, would I owe taxes in the US and thus have a payroll tax liability in the US?   I'm basically wondering whether I could end up paying into SSN/Medicare AND the NI in the same tax year.


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Re: Tax on Self Employment for US Spouse in UK
« Reply #4 on: March 23, 2014, 11:59:54 AM »
I'm not sure about the filing requirements for the self employed, but if your annual earnings are below some threshold (I think its around GBP5K) you don't have to pay NI, but as you would be paying the very inexpensive Class 2 NI it's a good idea to pay it any way so you get credits towards the state pension.

You will have to run your US taxes to see if your income levels make you liable to US tax applying FEIE or foreign tax credits.....if your income is low the likely hood is that you will have no US tax due.

Because you work in the UK you will not be liable for US payroll taxes.


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Re: Tax on Self Employment for US Spouse in UK
« Reply #5 on: March 23, 2014, 12:56:53 PM »
Thanks again.   So many issues to consider...


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