double taxation, 'arising' basis, tax returns, and foreign income

[LakeinaValley]

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Hello,

I've got a series of questions and wondered whether anyone could help?

1. If I'm in the planning stages of a business, and earn a minimal amount of income from the US (two figure amount in dollars), is there any need to file a US tax return, pay US taxes, or do anything like that? If there is no tax to pay, would there still be a need to file a tax return? Effectively, is just filing the UK tax return and declaring it as 'foreign income' on there sufficient? I don't have a permanent business establishment in the US.

2. When I declare the income on the UK tax return, how do I make sure that it's taxed on the 'arising' basis? I reside in, and have my domicile in the UK, so is the foreign income automatically taxed on the arising basis?

3. Do I need to file any form or apply to claim double taxation relief regarding this minimal income I received in the planning stages?

If anyone could help with that, it would be really excellent!

Thanks

[cottageguy]

Hi L

I am no expert, but i complete a form something like a W-Ben (?) to say that i declare my US income in the UK, and pay tax on it there. I think Google asked for it when I started with Adsense.

Jon