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Topic: Self-employment  (Read 856 times)

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Self-employment
« on: February 09, 2021, 08:48:21 AM »
I would like some advise about working for myself in the UK. I did a few searches but couldn't find anything. Apologies. I'm sure it's been asked before.
I'm a US citizen with permanent leave to remain in the UK.
I have heard that US citizens working for themselves must pay taxes in the US but I can't find any official information about this.
Is there anyway around this?
I'm thinking about doing some freelance but not sure it will be worth it if this applies.
Thanks for any help you can provide.
Best,
Aimee
*2004 Met in Belgium
*June 2006 married in Scotland
*Nov 2006 moved to the Netherlands
*Nov 2009 moved to the US
*April 17 2013 - VAF4 online visa Application filed (not priority)
*April 24 2013 - Biometrics
*April 29 2013 - VAF4 spousal visa supporting documents received in UKBA NY Hub
*May 10 2013 - Received receipt email from Sheffield.
*May 13 - Em requested additional information
*May 15 - Em from Sheffield  decision made
*May 17 - Passport returned w/ visa!
*June 07 - Entered UK


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Re: Self-employment
« Reply #1 on: February 09, 2021, 09:11:13 AM »
All US citizens must file US tax returns every year regardless of where they live. Employed, self-employed... doesn’t matter.

You are protected from double taxation by treaty, but you still need to file annually with the IRS.


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Re: Self-employment
« Reply #2 on: February 09, 2021, 09:14:48 AM »
Hi thanks for your reply.
To clarify, I know I must FILE taxes every year which I do but I heard that if self employed I must also pay even if I'm under the threshold. That's what I'm asking about. I think it may not be federal or state tax but you are required to pay into social security? I can't seem to find any official overview of what is required.

Thank you
Aimee
*2004 Met in Belgium
*June 2006 married in Scotland
*Nov 2006 moved to the Netherlands
*Nov 2009 moved to the US
*April 17 2013 - VAF4 online visa Application filed (not priority)
*April 24 2013 - Biometrics
*April 29 2013 - VAF4 spousal visa supporting documents received in UKBA NY Hub
*May 10 2013 - Received receipt email from Sheffield.
*May 13 - Em requested additional information
*May 15 - Em from Sheffield  decision made
*May 17 - Passport returned w/ visa!
*June 07 - Entered UK


  • *
  • Posts: 59

  • Liked: 0
  • Joined: Aug 2012
*2004 Met in Belgium
*June 2006 married in Scotland
*Nov 2006 moved to the Netherlands
*Nov 2009 moved to the US
*April 17 2013 - VAF4 online visa Application filed (not priority)
*April 24 2013 - Biometrics
*April 29 2013 - VAF4 spousal visa supporting documents received in UKBA NY Hub
*May 10 2013 - Received receipt email from Sheffield.
*May 13 - Em requested additional information
*May 15 - Em from Sheffield  decision made
*May 17 - Passport returned w/ visa!
*June 07 - Entered UK


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  • Posts: 6300

  • Liked: 1747
  • Joined: Sep 2015
Re: Self-employment
« Reply #4 on: February 09, 2021, 06:40:06 PM »
I have personal experience of this but I don't know enough to give out any advice other than unless you are earning enough money to pay for an accountant to answer questions like this, it's probably not enough to make it worth it.   

Here's a specialist forum for self employed people, you might find some Americans there as well. 
https://www.contractoruk.com/forums/

Here are some expensive accountants who may be able to answer your questions about self employment here in the UK but won't be any help about US tax issues

https://sjdaccountancy.com

Good luck!


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Re: Self-employment
« Reply #5 on: April 26, 2021, 09:00:45 AM »
Swinging in to answer this super late, I hope its still helpful!

I spent ages reading up on taxation laws in the US and UK to figure out how to be self employed. I eventually gave up and paid an accountant and it's definitely worth it. The US and UK tax small businesses different (the US as a person, the UK as a business) so tax law hits a whole new layer of complication when doing this. That said, it can be worth it depending on the business.

I picked up web design while on furlough and started my own business last year. Because of tax laws, I'm a sole trader/sole proprietor for now because it saves me a couple hundred quid a year on my accountants. My accountants have been really great for advice and do both US and UK taxes and seem really knowledgeable about how the laws interact with each other. It hurt really bad to pay them £870 to let me know I owe $16 in US taxes, but luckily business is already going well enough that by the end of 2021 I'll already be earning more than I was at any of the other UK jobs I worked or applied for in my area. So definitely worth it to me.

If you want to freelance, I'd plan on budgeting £1500-2000 a year for an accountant and decide if it's worth it based on that. I'm happy to share the names of my accountants or answer any other questions I can about the process  :)
Married : 2/1/2019
Priority Spouse Online App Submitted : 6/3/2019
Biometrics appointment : 7/3/2019
Documents sent to NY : 7/3/2019
Docs received in Sheffield email : 11/3/2019
Decision made email: 23/5/2019
Visa Decision: 5/6/2019 Yes!!!!!


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