# UK citizen/US resident working for US company, in UK



## jromaw (Jun 15, 2013)

Hi,

I am a UK citizen, although I have lived in the US for ten years as a permanent resident (I'm also a year and a half from being able to apply for US citizenship, would have been earlier but broke the continuous residence when I spent 11 months in the UK a few years ago). I work for a US company, remotely, and I am a "1099 contractor", so I have to sort out of my own taxes. 

There is a possibility that I might return to the UK to live, and I was wondering what steps I need to take with regard to taxes. I make about $14,000 a year, which is about £9000, and thus below the current threshold for having to pay UK taxes (as far as I know), but my wage does vary year to year depending on how much work I do so I could end up above that threshold.

My wages are paid into my US bank account, and I often transfer funds to my UK account, so there's no problem there. Would the company need to do anything different, or just continue to deposit my pay as normal? Will I need the paystubs (which are sent to a US address) when filing UK tax returns or are they only needed for audits?

From what I have read, I would need to register as "self employed" in the UK, wondering also what that would entail.

Thanks in advance for the help!


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## Bevdeforges (Nov 16, 2007)

One other (slightly contrarian) thing to consider - if you will be going back permanently to the UK to live, you may want to forego taking US citizenship. That will avoid having the monkey on your back for US taxation (or at least the necessity of filing). 
Cheers,
Bev


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## CapnBilly (Jun 7, 2011)

BBCWatcher said:


> Yes, that's correct. Until you get above £9,440 (total worldwide income) -- more if you're married -- you shouldn't have a U.K. personal income tax liability.
> .


There's no married couples allowance in the UK any more (unless you're over 75). It was abolished in 2000. Nor can you submit a joint return. There has been some talk of this by the Conservatives, but it is opposed by their coalition partners.


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## jromaw (Jun 15, 2013)

Thanks a lot for all the info, very helpful!


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## jromaw (Jun 15, 2013)

Yeah, I would definitely prefer to gain US citizenship and just continue to file US taxes and UK ones, it's not a career job or anything, just something I'm doing to keep me afloat while I pursue other avenues.

One other question: If I were to stop my US residence/forego citizenship, presumably my employer would no longer send me a 1099. Would they be required to provide a new form which recognised my UK residence?


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## jromaw (Jun 15, 2013)

Thanks, that's helpful info. I think having dual-citizenship would be an advantage, as you say. Having a work from home job, I usually spend about 4 months out of each year in the UK anyway (although, granted, this is only because I've had no relationship ties!) but I do consider the US my home base.


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