First Time paying Tax, earning from a US company.

I have just signed a contract to earn £20,000 a year from a company based in America. Because of this, I need to file my own taxes. Whilst the company is in the US I work remotely from the UK. Basically, I am unsure what to do, this is the first job I need to pay tax for (never earned enough) if someone could explain what to do to me like in detail that would be appreciated.

I'm assuming that you're a non-US resident alien here. I did the same a few years ago. I filled in an IRS form called a W-8BEN. There are two different ones depending on whether you're trading as a company (W-8BEN-E) or as an individual (W-8BEN). My advice is to trade as a company, as the US can sometimes be funny about paying individuals on contracts by putting you at the back of the queue. Also, get everything in writing. Then you just sort out your taxes by filing a self-assessment at the end of the tax year. Best of luck!

No question .

Hi Ziggy Dickson,
You will class this as self employment and as such treat the income as your turnover.
All income must be declared in sterling in a tax return
Tax on foreign income
Thank you