# Perm Res in US, doing a freelance job on UK soil - who do I pay tax to??



## stars (Aug 1, 2008)

I'm a photographer living in the US as a permanent resident, citizenship should happen later this year 
I have an opportunity to do a freelance job in the UK this summer for a UK company. I would do the photoshoot there but do all post production back home in the US. Before I take the job, I want to make sure that I can do this legally. I know I need to report income in the US, but does it complicate matters that I would be on UK soil doing some of the work? Meaning, should I actually be paying taxes to the Inland Revenue for the job even though I don't live there? 

Thanks in advance!


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## Bevdeforges (Nov 16, 2007)

I take it you have British nationality. Otherwise, there would be visa issues about working in the UK to further complicate matters.

Since you wouldn't be "overseas" (i.e. in the UK) long enough to qualify to exclude your earnings there, I think you will probably have to look into paying all the "usual" taxes to Inland Revenue, and then using form 1116 to claim back credit for whatever you pay in the UK against your US taxes. You can find form 1116 and instructions for it on the IRS website.


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## stars (Aug 1, 2008)

Thank you. Yes, I'm a British national. I haven't paid taxes to the Inland Revenue in a decade (since I moved to the US) - though I've been paying my voluntary NI contributions. I'm wondering if this could be more trouble than it's worth. I'm not sure which Inland Rev forms I'd even use (SA100, SA109...).


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## NickZ (Jun 26, 2009)

Won't you have to bill VAT? 

If you aren't won't the UK company treat you like an employee and do all the normal deductions?


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## Bevdeforges (Nov 16, 2007)

I suppose the answer here is "it depends." I'm sure the British government has rules in place for how to tax a "US person" hired to do freelance work in Britain. I suppose you'd need to plan on billing for your services directly (i.e. rather than as an employee) - in which case VAT wouldn't come into play (since the billing entity would be the "US person" and there isn't any VAT in the US). Not familiar enough with UK tax rules to mess with that one, but I would imagine that the OP has "checked out" of the UK tax service by now due to no longer being resident there.


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## NickZ (Jun 26, 2009)

If the UK was still in the EU I think the EU cross border VAT rules would have required him to either register below the threshold or to charge UK VAT. 

Either way I think the client is still required to pay VAT on the services.


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