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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am a US citizen living in the UK with a tier 2 visa. I am

Resolved Question:

I am a US citizen living in the UK with a tier 2 visa. I am self-employed and do work remotely companies in America. My clients transfer money directly to my US bank account. My question is, do I need to pay taxes in the UK, the US, or both?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
and welcome to the site. Thank you question.

As you are residing in the UK and your self-employed income is arising in the UK albeit the customer base is USA, you should report this income on your tax return to UK tax authorities.

You claim foreign tax credit relief suffered in the US (if any) against your overall tax payable here by completing supplementary page SA106-Foreign.

I am not sure what you have to report to IRS in US as a non-resident US citizen.
Under Double Taxation Agreement you won't be taxed twice on the same income.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you my answer.

Best wishes.

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