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Internet-based work in UK with overseas clients... tax?

20 January 2008 10:11

Hi,

I'm a newbie freelance UK based web-designer with the occasional overseas client. All my work is done here and I wondered if anyone knows what I need to do about money & taxes.

I only had 2 such jobs last tax year, but these will hopefully be the first of many. One was a very small job of one day for $300/£150 and the client was based in the USA. The other was also based in the USA and the job took me two weeks but I only charged them peanuts ($100).

Does anyone know what the tax laws are surrounding Internet-based work for overseas clients?

Thanks,

Julian

playboy_bunnie 20 January 2008 11:09

If your a UK Citizen, working from the UK (i.e. from home) I believe you come under UK laws, despite your client being based abroad.
hellosmithy 21 January 2008 11:55

Yep you don't need to pay tax in the states in this case. I think you only need to worry if you're working abroad for something like 190 days or more. In your case it sounds like you're doing the work from the UK anyway, so it shouldn't even be an issue.
Julian 21 January 2008 12:08

Thanks for the advise.

I have another scenario too. While away in Spain visiting a friend I took my laptop with me worked on 2 projects. One was for a UK based client, the other was in the USA. Does this make any difference or am I just clutching at straws here?

Julian
hellosmithy 21 January 2008 12:13

You should be fine if it was just a short trip. If you're registered and live in the UK, and you're being paid into your UK bank account then I don't think you'll run into any problems.