I am a US resident and do freelancing work for several companies and file a Schedule C. One such company is located in the UK and pays me in British Pounds, which I convert to US Dollars through my PayPal account. I of course report the income from the UK company as income on my schedule C, however, do I need to report that income to the UK as well? As mentioned, I am a US resident, never physically working in the UK. I am not an employee of this company, I only do freelancing work for them as an independent contractor. They do not report the money they pay me as any sort of wages. Thanks for any advice!
@Vze1zaom , UK ( and most countries ) taxes income on residents unlike US ( which taxes world income on citizens/ Immigrants ). Since your work is done in the USA and you are neither a citizen/ ordinarily resident of UK, your income is taxed ONLY by the USA. There is no reporting requirement to UK ( contracting entity would be showing the amounts as labor contract expenses ).
My reference in this US-UK tax treaty ( available at www.irs.gov, search for tax treaties) and UK --HM Inland Revenue web page.
Does this answer your query ?
@Vze1zaom , UK ( and most countries ) taxes income on residents unlike US ( which taxes world income on citizens/ Immigrants ). Since your work is done in the USA and you are neither a citizen/ ordinarily resident of UK, your income is taxed ONLY by the USA. There is no reporting requirement to UK ( contracting entity would be showing the amounts as labor contract expenses ).
My reference in this US-UK tax treaty ( available at www.irs.gov, search for tax treaties) and UK --HM Inland Revenue web page.
Does this answer your query ?