How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13858
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

I worked US Employer and was situated in the US through

Resolved Question:

I worked US Employer and was situated in the US through 30 Nov 2013. Earnings were in $ and paid to me in the US
I returned to the UK 29 Nov and reduced my time input with the firm to on average 1 day per week and was paid amount again in $ and into my US bank account
I traveled back n forth to the US over the next few months until my employment ceased
Im claiming Spilt Year treatment and want to know
1 Do I need to record my US earnings through 29 Nov? If so where do I record them and in $ or do I put in the equiv £?
2 earnings in the UK US employer ( 1 Dec through 5 April 2014) paid in $ and into my US Bank Account how/where do I record them in my UK tax return?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Thanks question
So I can advise correctly please state
1) Are you a British citizen, if so when did you first leave the UK to work abroad particular employment and what visits did you have to the UK between 06/04/2013 to 29/11/2013
2) Did you move to the UK 30/11/2013 or stay in the USA as a USA citizen to 30/11/2013 - as you then advise that you moved back to the UK 29th Nov - was this also 2013 ?
3) When did the employment cease with the USA
4) What dates did you travel in and out of the UK/USA from 29/11/2013 to the date the employment cease
5) Are you requiring help with the UK tax return
Thanks
Sam
Customer: replied 2 years ago.

Yes a UK Citizen since birth

Employed overseas since July 2011

Days in Uk in 6 Apr to 29 Nov = 55

Moved back to UK 30 Nov 2013

Went part-time 1 Dec through end of tax year. Same employer but working in UK 1 day a week average.Paid still in $ and into US Bank Account

Small number of trips to US post 30 Nov - 6 Apr = total days in US = 15 or so

Yes completing UK tax return. Have completed US Tax Return and will be completing US Tax Return too

Expert:  Sam replied 2 years ago.
Frank
Thanks run down and background residency position.
First I should advise that between the period 6th April and 29th Nov 2013 you should only have come back to the UK pro rata of 90 days - which equates to 51 days. As you in fact visited the UK 55 days, you are in fact going to be treated as resident WHOLE of 2013/2014, so all USA income has to be declared as Employment (UK employment with the tax suffered (USA from 6th April to 29th Nov and through PAYE, which you should have been operating on this 1 day a week salary from 1 Dec to 5th April 2014) and also declared on the foreign income page so you can claim the USA foreign tax suffered.
So you complete the main part of the self assessment return, the employment page (with all the income year and any tax suffered) and the foreign income page (with all the income and all the USA tax suffered)and the residency page (so that HMRC know that you breached the 90 day rule on a pro rata basis period 6th April to 29th Nov and can see you are liable to UK tax whole year and that split year treatment will NOT apply in this case)
Note that all income and tax suffered has to be converted to sterling Self Assessment return.
If you remain undertaking this 1 days a week work, then you should (if you are not already) arrange to set up a employers scheme so you can operate PAYE, as your existence with this income in the UK, means you have to act as proxy employer (with your address as the UK base) so that tax and National Insurance (both employee and employers be deducted) Let me know if you have not been doing this and I can advise how to take this forward from 06/04/2014.
Thanks
Sam
Customer: replied 2 years ago.

I understood that the Limit to the number of days in the UK under the Guidance Note: Statutory Residence Test (SRT) was 60 (Page 65) not pro rated to 90?

Expert:  Sam replied 2 years ago.

As someone who has the right to have the full 90 days - on a whole tax year, due to the fact you were working and living out of the UK, that's the figures used.
But even if we used the statutory residency test you still have exceeded the limit - you are counting the wrong says as this applies specifically to the split year - and refers to the bit once you are back in the UK (and is clearly stated at the top of the table!) - I am making reference to the bit when you were NOT living and working in the UK - that's the bit you have exceeded the limit on.
Thanks
Sam
Customer: replied 2 years ago.

Sorry but Im struggling with the maths

If I was in the US 6 Apr to 29 Nov thats 237 days which if I pro rata 90 days full year works out at58 days

How did you get to 51 days?

Whats the calculation?

Thx

Expert:  Sam replied 2 years ago.

You are absolutely right it does amount to 237 days (I'm sorry I did not check my calculations) of which 237/365 x 90 = 58.43 so you ARE within the 90 days pro rata and can be treated as not resident period up to 29th Nov
So you do NOT declare the USA income from 06th April to 29th Nov, just the income paid to you from 30th Nov to 05/04/2014 on the employment page and foreign income page (and any USA tax suffered) and also the residency page -
Again many apologies
Thanks
Sam
Sam and other Tax Specialists are ready to help you

Related Tax Questions