Skip to main content

This is a new service – your feedback will help us to improve it.

Posted 4 months ago by taxuser atri
Hi - Received W2 income from the US for royalties. Should this income be reported in the overseas employment section of the UK tax return? or included as self employed income from the US?
Posted 4 months ago by HMRC Admin 19 Response
Hi,
If it has not already been taxed abroad, this will be included within your self employment turnover.
Thank you.
Posted 4 months ago by taxuser atri
Thanks - it has already been taxed in the US. As W2 income is considered salary in the US, and the W2 income is backed by payslips, should this not be employment income?
Posted 3 months ago by HMRC Admin 19 Response
Hi,
Royalty income is not generally classed as employment income here, hence being advised to show as self employment. However, as you have payslips, yes, show as employment income on a UK employment page for the income to be included in the calculation and then claim the tax deducted as Foreign Tax Credit Relief at the foreign section.
Thank you.

You must be signed in to post in this forum.