Quote:
Originally Posted by adamjtucker
Hi there
Whilst in the US I have earned a mixture of dividends (from a UK company) and business income from consultancy work I have carried out on my own account. All work has been performed whilst in the US, but paid by UK companies in pounds into a UK bank account.
I'm pretty sure that I am right to have paid US (fed, NYS and NYC - ouch) taxes on all that but want to straighten out whether and how I need to settle up with the UK tax people. I understand that the UK tax liability will depend on whether the income is deemed to have 'arisen' in the UK, but can't find any guidance on the criteria used to draw the line there.
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The consultancy work is no problem - for "earned income" it's your country of residence that collects its due, no matter where or in what currency you've been paid.
The dividends will probably cause you some problems, but if you've been declaring them on your US tax returns you probably have a case for a "good faith" misunderstanding. (Plus, the US shares tax return information with governments it has tax treaties with...)
Someone will probably jump in here with experience to share, but on many threads there is mention of filing some sort of paperwork with the Inland Revenue to indicate that you are no longer resident in the UK. If you haven't done this already, you probably ought to start there.
There is a tax treaty between the US and the UK that stipulates who pays what taxes and where. If you're in NYC, you should be able to find a dual-qualified tax accountant - start by checking the British Consulate website. They sometimes offer lists of tax people in the area.
Cheers,
Bev