UK tax for US prop firms

[alientrade]

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

 

[b-man]

did you find out?

hi Alien,

did you find out - im in a very similar situation and would be interested to know how it works?

cheers,

Bman

 

[PraCap]

W-8BEN works fine for private US accts.
If you are you reg. as a partner with the firm, it may be more hassle.

 

[b-man]

anyone got any advice or resources on how you deal with all the legalities of getting paid from your brokerage account in the US?

do people that do this set themselves up as a limited company or is there another way to do it?

 

[azdo]

bumping this and hope knowledgeable members chime in...

 

[songcon]

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

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.

 

[azdo]

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.

I dont think that is accurate as I have heard otherwise - just not sure about the structure that is required.