question

James avatar image
James asked

UK User being over taxed

Hello, I'm in the UK and my earnings are being taxed 30%, UK and USA have a tax treaty so it should be 0% Is this something that will be looked into in the future? Ta
merch by amazon
10 |5000

Up to 2 attachments (including images) can be used with a maximum of 512.0 KiB each and 1.0 MiB total.

C Summers avatar image
C Summers answered
Hi Nate I am in the U.K. and had this issue initially, what you need to do is go through the tax information again carefully and make sure where it asks for your tax number put in your national insurance code. This worked for me. Hope this helps
10 |5000

Up to 2 attachments (including images) can be used with a maximum of 512.0 KiB each and 1.0 MiB total.

fosunet avatar image
fosunet answered
Hi, I am glad to see member from UK to have their opinion on the tax and running business from home. I am as well in UK, and realise I get paid my first payment at the end of Dec 15 into my Halifax bank, November wasn't to big in term of sale and the payment was too small £20. the sale start to appear from the 15 November, 11 sales on November with Estimated royalties of $96. I do work part time 3 days a week and pay tax as an employee, and work from home and have not declare that I am doing business from home, it so confusing. in my opinion the tax man will chase you only after pouring thousands into your bank, not 20 or 500...... My goal is to quit my job only after having stable income coming month after month into my account, let say 5 or 6 month having a monthly income, only than I can declare that I am running a business and declare to pay the tax, otherwise it make no sense if I declare now, and after 3 month the money is too small or even my account get shut down. is anyone already in the boat and have all thing settle properly? what is your experience with a tax man if you have been involved? any advice for what you need to apply or declare? in order to run a business and work from home, I much appreciate if I get your help and advice. Thanks
10 |5000

Up to 2 attachments (including images) can be used with a maximum of 512.0 KiB each and 1.0 MiB total.

Luke avatar image
Luke answered
Hey, You need to legally declare all income you make through here to HMRC. You should do so within three months of starting trading. Whilst it can be said you're a small fish and they 'won't bother' the reality is they could and not declaring your income is illegal. It's really easy to do on the self-assessment form and you will only pay tax applicable to your overall income. You needn't quit your job though you may need to advise them you have taken up a 'second job' as self-employed. If it's confusing I know the HMRC run courses to help people, your local business centre maybe able to help or hire an accountant. Remember none of this is professional advice and I can't legally advise you so I advise you research and speak to professionals if you need any help! https://www.gov.uk/working-for-yourself/overview Is a good place to start :)
10 |5000

Up to 2 attachments (including images) can be used with a maximum of 512.0 KiB each and 1.0 MiB total.

fosunet avatar image
fosunet answered
Hi, If I consider myself as employee and same time as Self employee working from home, the HMRC take tax as been as an employee, and the second tax probably will be taken as self employed. If I am running business from home and selling in USA, the Amazon in United State are withholding 30% from my income as tax, why would UK HMRC take another tax from my business running in United State....can't get the point here Would you be happy if you are making money and both state are taking tax from your hard work, and you left with small tiny profit. Thanks for sharing your idea and advice.
10 |5000

Up to 2 attachments (including images) can be used with a maximum of 512.0 KiB each and 1.0 MiB total.

Luke avatar image
Luke answered
If a second tax is taken off you, you can get that refunded. You will only pay the equivalent tax of earning that in a single job. The USA & UK have a tax treaty which means there will be 0% withheld if your tax information is filled in correctly - https://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties---A-to-Z
10 |5000

Up to 2 attachments (including images) can be used with a maximum of 512.0 KiB each and 1.0 MiB total.

James avatar image
James answered
Cheers dude!
10 |5000

Up to 2 attachments (including images) can be used with a maximum of 512.0 KiB each and 1.0 MiB total.