i am currently working self employed for a uk company over in america. I have worked 190 days in america by end of year 2006 and will probably work more next year.I am currently getting paid as if working in uk. Is there any tax dodge or way of saving taxes.
2006-10-19 03:02:01 · 6 answers · asked by good bhoy 2 in Business & Finance ➔ Taxes ➔ United Kingdom
You need an accountant (CPA or EA in the USA; FCA/ACA or FCCA/ACCA in the UK) to advise you on the terms of the UK/USA tax treaty. The idea of that lovely, wordy document is to tax income in one country only and to do it in an orderly fashion. Having done taxes in both the UK and USA, my gut reaction is that it would be nice if you were able to be treated as a US taxpayer for income tax purposes.
Payment of social security/NIC is a different matter. When I last looked ( a good few years now) there was a rule that let you remain in your home country's scheme for up to five years. So if you are working in the USA for less than that and plan to return to the UK, it makes sense to pay Class 3 (voluntary) contributions - unless you think that the benefits it preserves will not actually be there when you retire!
Both questions need to be addressed by a tax professional. If you currently have a UK accountant, start there but do not be afraid to engage an American one if you have to. You will find it invaluable in mitigating taxes. US tax laws change so regularly that only someone who does it as a full-time job can hope to keep up to date with legal ways of reducing your tax bill (legal does not, of course, include printing off receipts for expenses you have not incurred!)
Good luck with this and make sure you get good professional advice.
2006-10-19 07:12:42 · answer #1 · answered by skip 6 · 0⤊ 0⤋
I don't know if the law has changed (Although I wouldn't doubt it with 'Taxing Tone' in control) But when I worked on Cruise ships off the coast of America in the mid eighties, I made the mistake of coming back to the U.K for a 3 month break after 81/2 months and could do nothing about it. I learned that if I was out the country working for 9 months or over in a 12 month period I could get a rebate, so didn't make that mistake again and went for a months holiday in the U.S before returning there after and always got my rebate. Good luck! anyone who can get their money back from that bunch of crooks in Westminster is a star in my book!
2006-10-19 03:56:19 · answer #2 · answered by kbw 4 · 0⤊ 0⤋
you can buy a lot of tools as tax deductable or other than that a charitable donation is tax free but you would need to know someone who runs a charity group who would give you the money back,my cousin used to work at a diy shop and i used to get her to print of reciepts for tools and i gave them to the taxman it doesnt get you out of paying it all but you will get some back
2006-10-19 03:14:55 · answer #3 · answered by thebossovallbosses 1 · 0⤊ 1⤋
Avoid it for as long as you will be able to explain it off as an accident.
2006-10-19 03:05:08 · answer #4 · answered by Montgomery B 2 · 0⤊ 0⤋
Depends where/how you're getting paid.
2006-10-19 03:07:00 · answer #5 · answered by jinz 5 · 0⤊ 0⤋
Change your name to AL CAPONE, LESTER PIGGOT or KEN DODD
2006-10-19 03:09:21 · answer #6 · answered by hardupmatt 3 · 0⤊ 0⤋