UK tax for US prop firms

alientrade said:

Hi guys,

Wonder if anyone can help me out here.

I am a UK resident. If i am going to be trading prop for a US LLC and am paid out on a K-1.
Does this mean that I have to pay US tax and then later claim a credit on the UK side?
or...Is it possible to simply sign a W-8BEN, not pay US taxes, and simply pay my Uk tax obligations?

Any advice would be deeply appreciated.

Thank you

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songcon said:

Yes, you have to pay income taxes on your earnings from the US whether it is from form K-1, W-2 or form 1099-Misc and you'll get credit when you file you UK return as you've mentioned.

There is no way that you can skip paying US taxes and to report to the UK only. I know in the US, the two states: New Jersey and Pennsylvania have an agreement like you mention: Residents of NJ who work in PA will have to report their tax in their home state and not to worry about the non-resident state ( NJ 0r PA) that they work, but the issue of international taxation and verification of tax reporting is much more complex and different.

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