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Taxes and rules invoicing an American company from UK

21 July 2020 19:44

Dear all,

I am new here so first of all thanks for letting me join and for, hopefully, solve my queries.
I am an italian national with an Italian "partita iva". I work as a freelancer for an American travel company as a service provider and getting regularly paid. Now I wish to move to the UK before the end of 2020 and I want to sign up as sole trader and keep on working and invoicing the same company. Apart from paying the 20% of taxes from £ 12,501 up (I know the first 12,500 are tax free), do I have to pay any other taxes since the money come from the USA? In Italy I don't, but now sure about the UK. I don't earn more than 25k per year so I read I don't have to pay VAT either.
Thank you for any help you can offer.
Sincerely

Taxevo 22 July 2020 11:34

Hi Chiara84

When you come to the UK you'll need to register with HMRC as a sole trader and you'll then declare your earning via a self-assessment tax return each year.

You'll be taxed on the profit you make from your business activities (income less expenses) regardless of where the income is generated from. You are correct that VAT isn't required, that only comes into play if your income was to exceed £85k.

Regards

Taxevo - Specialist Freelancer Accountants
Chiara84 24 July 2020 08:52

Thank you so much for your clear explanation. I had read somewhere on the Internet that I had to pay higher taxes because my income was coming from overseas, that probably does not apply to small incomes like mine.
I will contact an accountant and set up my business then, wish me luck!
Taxevo 27 July 2020 13:30

Feel free to give me a call as I'm sure I can help set things up for you.
Lupita 12 August 2020 08:55

Chiara84!

Your question was selected by FreelanceUK and and answered by an expert on the Freelanceuk frontpage!
https://www.free-work.com/en-gb/tech-it/blog/guide-to-freelancing/%E2%80%99-questions-tax-due-us-income-if-i-left-italy-be-uk-sole-trader.shtml

Hope the advice within is useful!?

__

Moore News Ltd - expert care for your editorial needs.
Mirko-uk 1 September 2021 16:46

Thank you so much for your clear explanation
albertmads 9 September 2021 08:51

Hmm, very interesting. I had a similar situation. I have many relatives in Great Britain and a couple of years ago I decided to move from the USA. I work from home, I am a programmer and after moving I still work in my company from home. But due to the fact that the money is earned as if in the United States, I pay taxes in the United States