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Currently I'm a US citizen living in the UK on a Maltese (EU) passport. While I have worked full-time for companies here in the UK, I've recently had an offer to do some freelance work for a company also in the UK. This would mean setting up my own company and becoming self-employed. Because of this, what are the taxes that have to be filed with the US government come tax time? I've looked through the IRS' website and it's a bit confusing. I found the form I have to fill out, but does anyone know how much (maybe percentage wise?) I'd have to pay in US taxes for money earned being self-employed in the UK? The extra income from freelancing would be helpful while I'm looking for something else full-time, but not if it's going to be a headache and mean more money paid out come tax season.

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You will be filing the exact same form you've been filing until now (I hope...) which is called form 1040. Attached to it, you'll add a "Schedule C" form and "Schedule SE" form.

Keep in mind the potential effect of the tax and totalization treaties the US has with the UK which may affect your filings. I suggest you talk to a licensed EA/CPA who works with expats in the UK and is familiar with all the issues. There are several prominent offices you can find by Googling.

  • In particular you may want to discuss with them the pros/cons of a self employed approach verses setting up a LTD company and paying yourself through salary and dividends. – Peter Green May 27 '16 at 3:48
  • @PeterGreen in case of a US person, this may be a very dangerous idea... But yes, a question to ask. – littleadv May 27 '16 at 5:45

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