Tax Q: Working in the UK for a USA company

[Deleted User]

If I live in the UK, and do some work over the internet for a USA company, do I have to pay tax on my earnings? And if so, how, and to who?

roger_c

How do they pay you? Is it just cash (without and tax deducted) paid straight into your UK bank account?

And I take it you are UK domiciled (parents British, you were born in UK, etc)?

If the answer is yes to the above, then you will need to complete a tax return and declare the income as self-employed earnings (on self-employment pages), you will require to register as self-employed with HMRC within 3 months of starting, if you are late at registering they MIGHT charge you penalties (but unlikely).

Go to http://www.hmrc.gov.uk and you will need the following (just type the form name into the search box):

Form CWF1 to register your self-employment; and
CA5601 to allow you to may the class 2 NIC of £2.40 per week (collected monthly via direct debit), but if you will earn less than £5,075 in the year you may be exempt from paying this.

If you use these forms to register the Revenue will send you details of how to complete your tax return and this requires to be done before 31 October if filing on a paper return, or 31 January if filing an online return (which I would say is much easier).