Moving to us

Discussion in 'Business & Tax Advice' started by mattbowden, Apr 17, 2012.

  1. mattbowden

    mattbowden Regular Member

    Feb 2, 2010
    Likes Received:
    General know nothing
    I have had enough of the uk over taxed and to expensive. I wondered if someone might be able to help.
    I am planing on living in the usa but trading in the uk where do I pay my tax uk or usa.
  2. bryanon

    bryanon Executive VIP

    Oct 16, 2009
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    You do realise that there's more to moving to the States that than some (simple) tax questions, right? First of all, you need a green card to be able to legally reside there and get your social security number (without this you basically can't do anything - not even apply for a bank account in many cases). And assuming that you're a sole proprietor (as opposed to you owning a business or being an employee), this alone can get quite tricky.

    Tax wise, UK and US have a double taxation treaty, meaning that you won't end up in a situation where you'd pay taxes in both jurisdiction. As for where you WILL pay taxes, it differs based on what taxes are we talking about. Personal taxes (such as personal income tax) are nearly always paid in your residence country, i.e. the country where you stayed for longer than 183 days of the tax year in question. Business-related taxes (such as VAT, corporate income tax, etc.) on the other hand are paid in the resident jurisdiction of the business entity, which is USUALLY the country where the business is registered, however this can be overridden in some situations where the tax authorities can prove that the business actually resides (is concluded in) a different juristiction. That said, this is mostly the case with very low to zero tax jurisdictions and won't apply in your UK vs. US equation.