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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4087
Experience:  FCCA FCMA CGMA ACIS
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I am looking to sell products on Amazon.com, but I am a U.K

Customer Question

I am looking to sell products on Amazon.com, but I am a U.K resident. Do I have to pay a double tax to both the U.S and the U.K on my income? Ot how does it got?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
As an UK resident the profits from your Amazon trading would be subject to Income Tax in the normal way. You must tell HMRC when you begin that you are are self employed and they will arrange to send you a self assessment tax return for completion at the end of every tax year. I cannot see how the US tax authorities (IRS) would be involved at all, but in any event there is a Double Taxation Treaty between the UK and the USA (and indeed some individual States into the bargain) which precludes the same income stream from being taxed in both jurisdictions. Tax paid to HMRC would be a tax credit against any possible USA liability in any event. I myself was queried by IRS over my business activities, but they were entirely satisfied that my tax affairs were in order and discontinued their inquiries; all by telephone incidentally.
I do hope I have been able to put your mind at rest over this matter.
Customer: replied 2 years ago.

Hi Keith,

Thank you for your answer. I am looking to find a tax accountant that has knowledge of ecommerce law and who can provide solid advice on how to manage an internet business from sole trader stage to limited company. I am lost for where I can find one, could you point me in the right direction or recommend a firm or person that is small business friendly?

Thanks

Trevor

Expert:  bigduckontax replied 2 years ago.

Well frankly Trevor it's not exactly rocket science! Your sole trader activity simply stops and the subsequent transactions pass through the company's books of account. What I would do is to make a written note of your internet sales and expenses and aggregate them monthly, posting it to the appropriate ledger headings. You don't even need an accounting package, a simple spread sheet will suffice; it certainly does for two companies I operate.

As for recommending an accountant to do this for you Just Answer protocol precludes me from making any such recommendations. However, it is well within the capabilities of any high street practitioner. Ask your friends or business contacts if they know a competent book keeper that they could recommend.

I do hope I have helped point you in the right direction. Please be so kind as to rate me before you leave the Just Answer site.

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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.