How does HMRC know i've worked abroad?

motodop

Something has been bothering me:
I am self employed and work for independent companies overseas in many different countries. I always have to provide these companies with a HMRC letter proving I am registered as self employed in the UK. I then receive payment un-taxed from the overseas company. Of course I declare this earning in my end of year UK tax return.
How does HMRC know I do this work overseas if I was not to tell them?
Moto

fengirl_2

I dont think they would know, necessarily.
What bothers me is the requirement by these overseas companies to see evidence that you are self employed in the UK! This has nothing to do with them - you are either self employed under the rules in their country or you are not, it doesnt matter whether you are registerd in the UK. Its like asking your plumber for his tax reference number - its juts not done.

cajef

fengirl wrote: »

What bothers me is the requirement by these overseas companies to see evidence that you are self employed in the UK! This has nothing to do with them - you are either self employed under the rules in their country or you are not, it doesnt matter whether you are registerd in the UK.

The reason they need this is nothing to do with whether he is self employed it so that they know he is a UK tax payer, it is up to him whether he provides it, however by providing it to these companies in his own words, 'I then receive payment un-taxed from the overseas company.'

If he did not he would be taxed at source at the tax rate of the country he is working in.

How does HMRC know I do this work overseas if I was not to tell them?

They don't, but when you sign your tax return you state that you have declared everything so they are relying on your honesty, of course if you are not honest you are leaving yourself open to investigation by HMRC and any possible consequences.

Cook_County

See here for the suggested solutions:

http://www.taxationweb.co.uk/forum/discuss.php?id=22730
http://www.expatforum.com/expats/america-expat-forum-expats-living-america/3956-us-uk-tax-specialist.html

Cook_County

I note from your previous posts that you live in San Diego. The answer depends on your visa category among other things.

What kind of US visa do you have?
Are you US resident for US Federal or California State tax purposes
Do you not owe tax in both jurisdictions in any case or are you overlooking tax in the States?