# Totlisation Agreement. Question



## Meepmeepy (Sep 17, 2014)

SO.

Not sure if anybody can help with this, not even sure if that is an issue but if anyone has any suggestions please let me know.

So.

Our accountant made a mistake and sent a letter to the US asking for exemption from US social security, when it needed to be sent to the UK. 

No big deal right? We sent one to the UK about a month later when we realised the mistake assuming the US wouldn't reply.

SO today we get a certificate from the US, giving (when filled out) exemption from the UK system so US self employment taxes need to be paid. My partner has no intention of ever going to back to the US so this is useless. Its clear the person who sent this did not read out letter because it did not ask for this.

My concern is as we are now apparently going to get a certificate from both sides of the pond is there any risk my wife my get in trouble? Might it effect the UK actually granting a certificate if they check with the IRS (we are still awaiting that one). Obviously we'd only ever use one as evidence but I just want to check if theres anything we can do? Maybe write a letter to the US and explain it was sent in error?

I may be worrying for nothing but I just want to make sure thats all.


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## Bevdeforges (Nov 16, 2007)

Do you have a form number for what the US side sent you? Because if it's one of "those" forms and (as you said) "needs to be filled out" then it doesn't have any effect until and unless you fill it out and submit it to the UK tax authorities.

The way the totalization agreement works is that if you are covered by the "social security" of the country in which you are working, then you are not subject to US "self-employment" tax. What the accountant should have requested from the UK was a certificate verifying that you ARE covered by the UK "social security" (i.e. social insurances). That certificate exempts you from having to pay US self-employment taxes.

And in reality, the various tax services rarely, if ever, check with each other unless it involves large sums of tax that are suspected of not having been paid.
Cheers,
Bev


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