Filing taxes when moving UK-USA (Self-assessment)

[ayestaci 121]

Hey!

 

This is a bit of a preemptive question, but just wondering if anyone has any insight.

 

The way things are going, my move to the US will likely be this summer. I file my taxes via self-assessment, as I'm self-employed.

 

I'm planning on filing my taxes with HMRC for 2019-2020 pretty much as soon as I can (April/May) to get those out of the way and paid. But I will still have a couple of months left in the UK of being self-employed before I move to the USA. Does that mean HMRC next year is going to try and tax me on the whole tax year (2020-2021) rather than just the two or so months I remained in the UK?

 

(I'm pretty sure I've worked out this will not be the case when filing in the USA for 2020 since I can get a foreign tax credit for the time I was in the UK—to be honest, I'm more concerned about HMRC for the tax year of 2020-2021).

 

If anyone has experienced this situation and has an answer, I'd be really grateful!

[Crazy Cat 42,062]

****I'm moving this to the UK discussion area as it related to UK taxes***

[Wuozopo 4,293]

1 hour ago, ayestaci said:

Hey!

 

This is a bit of a preemptive question, but just wondering if anyone has any insight.

 

The way things are going, my move to the US will likely be this summer. I file my taxes via self-assessment, as I'm self-employed.

 

I'm planning on filing my taxes with HMRC for 2019-2020 pretty much as soon as I can (April/May) to get those out of the way and paid. But I will still have a couple of months left in the UK of being self-employed before I move to the USA. Does that mean HMRC next year is going to try and tax me on the whole tax year (2020-2021) rather than just the two or so months I remained in the UK?

 

(I'm pretty sure I've worked out this will not be the case when filing in the USA for 2020 since I can get a foreign tax credit for the time I was in the UK—to be honest, I'm more concerned about HMRC for the tax year of 2020-2021).

 

If anyone has experienced this situation and has an answer, I'd be really grateful!

HMRC on leaving the U.K. https://www.gov.uk/tax-right-retire-abroad-return-to-uk

 

File P85

[ayestaci 121]

Just now, Wuozopo said:

HMRC on leaving the U.K. https://www.gov.uk/tax-right-retire-abroad-return-to-uk

 

File P85

Thanks. Have read this, but I believe I do not fill out a P85 as I file a self-assessment. Self-employed.

 

More concerned about how much tax I will actually have to pay for that year, being self-employed.

 

 

[Wuozopo 4,293]

9 minutes ago, ayestaci said:

Thanks. Have read this, but I believe I do not fill out a P85 as I file a self-assessment. Self-employed.

 

More concerned about how much tax I will actually have to pay for that year, being self-employed.

 

 

There’s a contact us page https://www.gov.uk/tell-hmrc-change-of-details/income-changes and a phone number.

 

Sorry I was not self employed in the UK so can’t comment on self-assessment. I am self-employed in the US. I know the tax treaty in place says once you move, you pay the US even if you have UK Clients, or income is paid into a U.K. bank account.

[corntop 129]

There's something called "split year treatment" that I think might apply when we move in the middle of a tax year, I'm not 100% certain of the ins and outs, or if it applies, I've been trying to research this subject myself in preparation for how it'll all work, especially when we file 2020 US taxes having earned UK income as well as I'll be working pretty much up until the month I leave. We actually have similar timelines so it might be summer for us too. At least the tax treaty is in place so I don't think you'll be charged for the entire year? Would you just send another self-assessment once you're in the US? It's all very confusing to me!

 

Anyway:

 

 https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12000

[ayestaci 121]

5 hours ago, corntop said:

There's something called "split year treatment" that I think might apply when we move in the middle of a tax year, I'm not 100% certain of the ins and outs, or if it applies, I've been trying to research this subject myself in preparation for how it'll all work, especially when we file 2020 US taxes having earned UK income as well as I'll be working pretty much up until the month I leave. We actually have similar timelines so it might be summer for us too. At least the tax treaty is in place so I don't think you'll be charged for the entire year? Would you just send another self-assessment once you're in the US? It's all very confusing to me!

 

Anyway:

 

 https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12000

Thanks for the insight! Same, I've been trying to research, but I have no idea. I think I'm just going to have to contact HMRC right before I move and say, "hey, I'm moving, help." Haha. Hopefully split year applies.