US citizen living in the UK working remotely for a US company - tax situation?

 Hi there,

 

A bit of a complicated question to do with US/UK remote working and tax.

 

I’m a US citizen with a two-year UK graduate visa (commenced April 2022).

 

I’m splitting my time between my family home in the US, and my flat in the UK. I would say around a 65% of my time is in the UK, 35% the US.

 

A few months ago, I started working for a US company remotely, based from my US address. I carry out my work with them when I’m in the US and when I'm the UK. On the side, I do a little bit of ad-hoc creative work in the UK (a couple hundred pounds a month max). I have a UK National Insurance number.

 

Based on all of that info, where should I be paying tax? Any advice would be hugely helpful, as I am at a complete loss.

 

Also, if anyone could recommend a good tax expert / lawyer / accountant who specializes in this kind of situation, I would really appreciate it!

 

Many thanks,

 

Paul


Comments

  • DullGreyGuy
    DullGreyGuy Posts: 17,540 Forumite
    10,000 Posts Second Anniversary Name Dropper
    Thankfully the two countries have a reciprocal  tax agreement and so you wont end up with double taxation but you are best off speaking to a tax advisor (who's PI insurance would then cover them if they give you bad advice) to ensure you are correctly declaring which income in which jurisdiction.

    The US people I know were resident and earning in the UK so was a simpler case of declaring all income HMRC and paying UK tax and then notifying the IRS of income and tax to date and as the UK has a higher tax rate nothing was payable to the US.
  • Thankfully the two countries have a reciprocal  tax agreement and so you wont end up with double taxation but you are best off speaking to a tax advisor (who's PI insurance would then cover them if they give you bad advice) to ensure you are correctly declaring which income in which jurisdiction.

    The US people I know were resident and earning in the UK so was a simpler case of declaring all income HMRC and paying UK tax and then notifying the IRS of income and tax to date and as the UK has a higher tax rate nothing was payable to the US.

    Many thanks for your help! Can you recommend a tax accountant / organization that might be able to help me with this? Cheers

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