Self-employment Tax and Accountants Specialising in Expat Tax

Hello out there. I am new to the site and this is my first ever post! I have actually lived in the UK for 13 years but last year started doing private work as a psychologist and was informed that I need to pay self-employment tax on my private practice income. I have been doing a lot of searching and reading online (including on this forum) and don't feel much clearer. It seems like I should not have to pay self-employment tax in the US and need to get a certificate of coverage from the UK government. I have read previous threads but it appears I should get the certificate of coverage from the address below:

Inland Revenue
National Insurance Contributions Office
Center for Non-Residents
Rooms BP 1301/BP 1302
Bamburgh House
Benton Park View
Longbenton
Newcastle upon Tyne NE98 1ZZ
ENGLAND

Be sure to provide the following information in your letter:

* Full name;
* Date and place of birth;
* Citizenship;
* Country of permanent residence;
* U.S. and/or U.K. Social Security number;
* Nature of self-employment activity;
* Dates the activity was or will be performed; and
* Name and address of your trade or business in both countries.

I am wondering if anyone has experience with this and can confirm that this information is current. I have attempted to go online and decipher the HM Revenue site without luck and past experience tells me speaking to a human will probably not be any more helpful.

The other issue I am considering is using an accountant that specialises in expat tax and potentially one that is able to file both US and UK returns. There are quite a few on the internet and I have e-mailed some of them but would really appreciate word of mouth feedback if I can get it (Greenback Expat Tax Services is the front runner at the moment). Does anyone have experience with the expat specialty groups?

I realise these issues have been covered before but not very recently.  Any words of wisdom would be greatly appreciated!

Technically one does not need a certificate of coverage; as the totalization agreement confirms that a self-employed worker is covered in the country where he or she is ordinarily resident. It is nonetheless a nice thing to have. You are on the right lines.

In terms of choosing a dual qualified tax adviser in the UK:

1. Find out who the adviser is qualified with; how long since qualification and if they have other clients similar to you.
2. Do not be shy asking who is the adviser's supervisor for anti-money laundering purposes (it is incidentally a criminal offense to offer tax advice in the UK unless the adviser is supervised). The default supervisor for someone without UK accounting or tax qualifications is HMRC; but better still to select someone qualified in the UK so that HMRC cannot access the advisers files.
3. Choose somebody you trust, based on meetings and conversations.

Do bear in mind that you may find it less expensive to have the UK returns prepared locally and not by the same firm.

I got the certificate of coverage by writing in as you describe. It was gloriously informal with the clerk phoning me up to chat it over before sending it in the post a couple of days later. So include your phone number on your request!

As for a tax advisor - good luck. I'm still looking. They are all scared sh--less by the IRS and will not provide any advice at all, only fill in boxes, interpreting all tax code in the most ultra-conservative way. I believe Greenback can only deal with the most very straightforward tax returns but I may be wrong.

Filing your tax return(s) is mostly about a tolerance for paperwork. As I've stated numerous times, unless you have an VERY complicated tax situation, a professional is rarely needed.

The UK self-assessment is far easier than our good old US 1040.

I am not a tax professional and this is only my opinion. You mileage may vary and your comfort level may vary, but when you see the cost of engaging a really good dual-qualified firm, you may well decide a bit more reading, prep and a stack of sharp pencils suits you far better.

Somedayscratch just curious if you have made any progress towards finding and accountant.  I am interested in the same.  I currently have a local accountant handling my UK stuff.

Hello

Just wanted to drop a quick note and let you know that we (Greenback Expat Tax Services) deal 100% in expat taxes, and can handle a wide variety of situations (from simple to advanced). We can of course file your personal returns, but if needed, we can also assist with getting caught up, filing corporate returns, reporting for foreign trusts, etc.

Our team specializes in expat issues and the UK is actually home to our largest client base, so all of our accountants are familiar with UK issues. We even have a UK accountant on staff if you need help with the UK side of things.

I would love to learn more about your situation, and let you know for sure if we can help. If you don't mind, please feel free to email me some more details at info@greenbacktaxservices.com and we will get in touch to provide some advice.

I hope to hear from you!