UK/US tax treaty (ITIN)

I recently undertook some work for a US company. To have them pay me, I needed to get an ITIN number, which meant visiting the US embassy in Grosvenor Square.

From the documentation, I understand that I had to do this because of a tax treaty between the US and UK to stop people working for overseas companies and not declaring it. I presume that the US Internal Revenue Service informs the UK tax man of what I'm up to, and my ITIN is linked to my NI number.

My question is perhaps obvious: does the UK tax man ever get to hear about how much money I make with the US company? Or is he merely made aware that I am now working for the US company in some capacity?

Reply to
Brian
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you were working with what status - employee, sole trader selling services ?

Phil

Reply to
Phil Thompson

Sorry for the late reply. It's rather complicated but I wrote a technical manual for a US company. I wrote this from my house in the UK. I get paid royalties, paid quarterly, and got a small advance. I work full-time in the UK and pay tax/NI through PAYE.

Reply to
Brian

so this sounds like a sole trader transaction done on the side of your main PAYE employment. Moonlighting as it were.

I've forgotten the question - the idea of tax treaties is that you don't pay twice. So if you declare this like a good boy on a self assessment form the due tax will be collected and all is correct.

If tax was deducted by the merkins it should be deducted from what you owe.

TBH none of this was necessary, I do sole trader work for the use and don't have an ITIN (I even tried to get one in the States and was denied)

Phil

Reply to
Phil Thompson

That's about right.

The question was whether the British taxman gets to know exactly how much I've earned, apart from when I tell him. He now knows I may or may not have worked for a US company but am I right in thinking that's about all he knows?

The company I worked for said they couldn't pay me unless I had an ITIN. It was a lot of work having to visit the US Embassy in London to get it all sorted out (I live in Glasgow).

Reply to
Brian

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