UK Freelancer getting paid by USA
Thread poster: Laura Maria Nicosia

Laura Maria Nicosia  Identity Verified
United Kingdom
Local time: 07:17
English to Italian
+ ...
Dec 26, 2014

Dear all,

I work as a freelancer in the UK, I am hired by a company in the US that regularly pays me in Dollars,
I am now completing my tax return and I thought I needed to put that income as foreign income, but when it gives me the list of types of income gain none of them seem to apply to my case.
Should I just put it as part of my self employed income? Or can someone tell me which of these apply to freelance translators?

Many thanks.

LAura
Interest and other income from overseas savings Help about: Interest and other income from overseas savings - opens in a new window

Dividends from foreign companies Help about: Dividends from foreign companies - opens in a new window

Overseas pensions, social security benefits and royalties etc Help about: Overseas pensions, social security benefits and royalties etc - opens in a new window

Dividend income received by a person abroad Help about: Dividend income received by a person abroad - opens in a new window

All other income received by a person abroad and any remitted 'ring fenced' foreign income Help about: All other income received by a person abroad and any remitted 'ring fenced' foreign income - opens in a new window

Employment, self-employment and other income which you paid foreign tax on Help about: Employment, self-employment and other income on which you paid foreign tax - opens in a new window

Capital gains Help about: Capital gains - foreign tax credit relief and Special Withholding Tax - opens in a new window

Any other overseas income and gains Help about: Any other overseas income and gains - opens in a new window

Income from land and property abroad Help about: Income from land and property abroad - opens in a new window


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David Wright  Identity Verified
Austria
Local time: 08:17
German to English
+ ...
Earnings Dec 26, 2014

Given that there will be no difference in the way the income is treated for tax purposes, convert it into GBP at the appropriate rater (i.e. the amount taht turned up on your bank account, possibly taking into account bank charges) and add it to yxour income.

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Sheila Wilson  Identity Verified
Spain
Local time: 07:17
Member (2007)
English
+ ...
Self-employment income Dec 26, 2014

I'm no lawyer, far from it, but I've only ever invoiced Spain-based clients twice; my clients come from just about every continent. But it's all the same to me: I'm invoicing from my Spain-based freelance business, and Spain is where the taxes are due. Currencies other than EUR are converted into EUR.

So I'm confident in saying that ALL your income gained from invoices from your UK registered address to clients around the world should be entered as self-employment income, generated from the UK. Convert to GBP where necessary, using whatever rates and dates HMRC stipulates (could be invoice date, payment date or end of month - you need to check).

Note that if you deal with the US a lot you may be asked to complete and sign a W8-BEN, and send it by post. That's a nuisance but the agency needs to cover their proverbials if they're paying you regularly without deducting US taxes. It's a highly confusing form but my first agency told me exactly what to put where, and most was left blank.


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Laura Maria Nicosia  Identity Verified
United Kingdom
Local time: 07:17
English to Italian
+ ...
TOPIC STARTER
Thanks Dec 26, 2014

Thank you all. Very helpful. Happy New Year

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Jasmina
United Kingdom
Local time: 07:17
Italian to English
thanks Dec 27, 2014

just a quick thanks for this info, as I'll be filling out my first UK tax return soon and I'd been wondering about this very issue, so it'll save me posting here!
Happy holidays.
Jasmina


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