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Posted Wed, 20 Nov 2024 10:18:52 GMT 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 Tue, 26 Nov 2024 14:44:58 GMT 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 Tue, 26 Nov 2024 14:49:10 GMT 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 Tue, 03 Dec 2024 10:18:45 GMT 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.

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