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Where Taxpayers and Advisers Meet

Self Employed - US taxes living in England

Izzy123
Posts: 1
Joined: Thu Jul 18, 2019 1:27 pm

Self Employed - US taxes living in England

Postby Izzy123 » Thu Jul 18, 2019 1:29 pm

Hi I currently live in England, I have been self employed since moving here in 2016. I haven't filed for USA taxes because I didn't realize you needed to. When I try to file it says I ow them 1000's which just seems unfair since I pay my British taxes. I was doing some research online and came across the certificate of residence. Is this correct? Will this exempt me? Thanks so much, any advice will help!!

DavidTreitel
Posts: 204
Joined: Thu Aug 16, 2012 4:31 pm

Re: Self Employed - US taxes living in England

Postby DavidTreitel » Fri Jul 19, 2019 8:53 am

Most folks would use the IRS Streamlined Foreign Offshore Procedures (SFOP) to catch up: https://www.irs.gov/individuals/international-taxpayers/u-s-taxpayers-residing-outside-the-united-states. It would unusual however to owe any tax to the United States because, broadly speaking, rates of tax are typically higher in the UK than the US. You may be referring to US self-employment tax. As you are covered for social security purposes in the UK you should not owe US self-employment tax. It may help to say that we naturally provide our clients with detailed instructions on how to obtain a certificate of coverage, as this certificate can be helpful to have.

David Treitel | Managing Director | American Tax Returns Ltd
The Old Exchange, 12 Compton Road, London, SW19 7QD

Tel: 020 3542 6330

Email: david.treitel@americantaxreturns.co.uk


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