UK Online Sellers: Operating From US but Selling to UK (Tax Residency Problem)
UK citizen moves to US, runs eCommerce selling to UK customers. Declares UK-source income to HMRC (subject to 20% UK tax). Also files US tax (subject to ~37% US tax if in US >6 months). Double taxation without treaty relief = 57% tax rate. AskBiz tracks income source, identifies relief options.
The Double Taxation Problem#
UK tax: resident on worldwide income. US tax: if physically present >183 days/year, taxed as resident. Both claim right to tax UK-source income.
Tax Treaty Relief#
US-UK tax treaty allows home-country tax relief. Example: owe £4K UK tax, £6K US tax = £10K before relief. With treaty: claim foreign tax credit. Pay whichever is higher (usually US), get credit against the other = ~£6K total.
Tags income by source (UK, US, other).
AskBiz International Income Tracking#
Tags income by source (UK, US, other). Calculates tax liability in both jurisdictions. Shows relief available. "UK-source income: £50K. UK tax due: £10K. US tax due: £18.5K. With treaty relief: pay £18.5K total (US higher). Save £10K vs. double taxation."
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- UK citizen moves to US, runs eCommerce selling to UK customers.
- Declares UK-source income to HMRC (subject to 20% UK tax).
- Also files US tax (subject to ~37% US tax if in US >6 months).
People also ask
Do I owe UK tax if I move abroad?
Yes, on UK-source income (customers, assets). Depends on tax residency status. Consult accountant.
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Optimize International Tax (Avoid Double Taxation)
AskBiz tracks income by source, jurisdiction tax liability. Identifies treaty relief options. Save £5K-20K annually. Try free.
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