UK tax liab for income earned whilst in USA

[Migy]

Hi

Just to add to this I am in a similar situation.

My husband and I moved to the US 2 months ago we currently are the directors of a UK Ltd Co providing software work to UK based companies paid in GBP into UK bank accounts. We pay Corporation Tax on the profits and receive the remaining money as dividends. We plan to form a US company and so all our taxes will be paid to the US.

But in the meantime (and for all the money earned this year so far) as we have already paid 20% corporation tax on all the company profits will we have to pay further tax (self-employment tax etc?) on those earnings as surely that will be double taxation?

Any help greatly appreciated I am going around in circles on my own trying to figureit out!

Many thanks

Caroline

[Bevdeforges]

You should probably consult a tax advisor (tax accountant or enrolled agent) regarding both your personal taxes and how to best establish your US company.

Can't say for certain, but I suspect that your UK company is not liable for US income taxes. Your income from the UK company, however, will be subject to US income tax starting with the date you established your residence in the US - but it will depend on how you pay yourself from the UK company. (I.e. salary income is taxed differently from dividend income, for example)
Cheers,
Bev