I'm a UK citizen who works full time for a UK company. I pay taxes directly through the company (i.e. they are taken out of my paycheck). I would like to start contracting part time for a US company based out of Queensland, but just wanted to double check on the tax situation of that.
I know from this post: Do I pay taxes where I live, or where I work?; that I won't need to pay taxes in the US, but I believe I will still need to file a UK tax return.
- Relatively low paid - I don't expect to exceed $100 a month ($15 per "project").
- Paid through PayPall Invoice
- Paid in US Dollars
I'm just trying to work out if it's worth it, but I can't seem to work out what tax I'm going to be paying on the job. I'm currently earning just under the next tax bracket, will this effect that?
Are there any considerations I should make regarding this? I would be interested to hear if anyone else has done something similar, is it going to cause me a lot of hassle at the end of the tax year?
It's essentially this question US Resident with a full-time job for a US company started a contracting job for a UK company in his free time but the other way around!
Edit: I am aware that: "the first £1,000 of income from self-employment - this is your ‘trading allowance’" .gov, but I don't know if this is separate to my main income.