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Posted Tue, 07 May 2024 16:44:30 GMT by Javed
I am a British citizen but have been a US resident since March 2022 and ceased to be a UK resident at that time. I work as a missionary in the US and in the future some of my funding will come from people in the UK. Would that be considered UK source income – and therefore require me to file a UK tax return and pay UK tax on it – even though all the work is carried out in the US?
Posted Tue, 14 May 2024 14:54:04 GMT by HMRC Admin 8
Hi,
Please refer to:
BIM62101
Thank you.
Posted Tue, 14 May 2024 20:30:13 GMT by Javed
Thank you. I am aware the income I receive for my work is considered taxable income, and I paid UK tax on such income when I was UK resident. I am not UK resident anymore and my question is what is considered UK source income. As a UK citizen but no longer a UK resident, it seems clear that I only pay tax on my UK source income, not on other worldwide income. The IRS in the USA considers the source of the income as the location in which the work was carried out, in my case in the USA (https://www.irs.gov/individuals/international-taxpayers/source-of-income-personal-service-income). I cannot find such a clear definition of what HMRC considers the source of income. I am self-employed in the USA and receive gifts for my missionary work in the USA into this business. If a gift is given by a UK-based donor, does HMRC consider that UK source income and therefore require me as a UK citizen resident abroad to pay UK tax on that income? Or since the business is US-based and the work is done overseas, does HMRC consider that income as US-source income as the IRS does?
Posted Fri, 17 May 2024 09:29:20 GMT by HMRC Admin 25
Hi Javed,
Please refer to:
Tax on your UK income if you live abroad
Thank you. 
Posted Sun, 26 May 2024 00:04:17 GMT by Javed
Thank you but unfortunately it doesn't answer the question. In fact, it's what prompted the question as it's not clear what exactly constitutes UK source income but it is clear that if I have it I have to pay UK income tax on it or submit a claim for a reduction based on the US/UK dual tax agreement. If my business is constituted in the US and I do the work in the US, if I have a donor in the UK, is that "UK source income"?
Posted Thu, 30 May 2024 12:09:17 GMT by HMRC Admin 19
Hi,

The example you gave is not classed as a UK source of income.

Thank you.
Posted Thu, 30 May 2024 17:47:30 GMT by Javed
Thank you so much. That's really helpful to know.

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