US resident with UK income

US resident with UK income

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Hi there,
 
I moved to the US from the UK with my American wife in July 2014. I set myself up a sole trader in the UK before moving and have been paying NI contributions since. I was told by HMRC that I don't need to file my UK taxes until Jan 2016. I now have a job in the US and continue to work and get paid for UK projects (I'm a graphic designer). After moving, I stupidly didn't realise there was a p85 form to tell HMRC i'd no longer be a resident of the UK - am I too late to now file this mid year?
 
At the same time, I am now filing my US taxes with my wife. As required by the IRS, I'm including my UK income on my US return, but don't want to have to pay tax on it all again in January next year when I do my SA return in the UK.
 
Should I file my p85 now ready for next January? or am I too late?
I assume HS302 is the other form I need to get my head around - and I'll submit this with my UK return in Jan 2016?
How does this all work when it's over 18 months / two tax years?
 
Any help is much appreciated.
 
--J

Replies (4)

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By duncanedwards
13th Apr 2015 17:59

Probably best to get advice to make sure you are compliant with the law in both the US and UK. There may even be some planning opportunities although it would have been better to consider those some time ago.

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By Tim Vane
13th Apr 2015 18:09

There is nothing in your post to suggest you have any UK source income.  You say you have a UK trade but if you are resident in the US then this is not likely. What does the UK/US tax treaty say? I suspect that your trade income will be treated only as US income and not taxable in the UK.

You definitely need to get some professional advice. There are plenty of advisers on here who specialise in US matters and hopefully one will post on this thread soon.

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Portia profile image
By Portia Nina Levin
24th Apr 2015 20:12

(No subject)

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By Martin B
14th Apr 2015 15:26

PNL- What a strage response ..I will continue

I used to get migraines all the time when I was 16 years old. Had eye test - got spectacles -job done!

Last year - was gardening and banged my head in the shed- lots of blood I thaught!!. Rushed inside and my wife told me - its nothing -just a small cut- patched me up and I carried on gardening.

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