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Posted Fri, 01 Jul 2022 08:32:40 GMT by jenF
Hello, I am a UK tax resident and self-employed in the UK. I have been offered a contract as a consultant (i.e. self-employed in the UK still and not employed) by a company based in the US. Do I understand correctly that I do not need to pay tax in the UK as long as I pay through my self-assessment in the UK? I have been asked to complete a W-8BEN form for the US tax system, which as far as I can tell, takes care of a double-taxation agreement so that I do not pay tax twice. Please could you confirm if there is anything else I would need to do for the double-taxation agreement? Could you also confirm that I should not have to complete any more documentation for the US tax system, nor pay any taxes to the US? Thank you very much for your help.
Posted Mon, 04 Jul 2022 09:51:31 GMT by HMRC Admin 24
Hi,

The income you receive will be taxable in the UK and should be included within your tax return under self-employment.

If any tax is deducted in the USA, you will also show it as foreign income and claim any foreign tax credit relef.(this doesn't double up the income).

You might need to apply for a certificate of residence to confirm to the US authorities that the income is taxed in the UK but if the W-8BEN form covers this, then it may not be required.

With regards to documentation for the US, you would need to consult with them.

Thank you.

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