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Do I need to pay US income tax on foreign (UK) earned income?

(UK) if i own a business and pay corporation tax on my profits, do i also have to pay income tax?

  • just wondering as this makes no sense to me. would I pay 20% corporation tax and 20% income tax? so would I be losing 40%? Thanks.

  • Answer:

    well the business is in it's own right liable for tax you run the business the profits are the businesses not yours you take a wage from the business this comes off the profits do you see where it's going you are taxed on your wages the business is taxed on what's left after it's paid out it's expenses ie you

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Maybe tell us the status of this business IF you are sole trader, then you pay income tax on any profits the rate for basic income tax is 20% uk

Jan409

If the business exists in its own right as a company then it will pay corporation taxc on any profits. Dividends are taxed and when you submit your Tax Return you show the nett dividend and the tax credit on the dividend. The tax already paid counts towards your tax already paid in the year. Most sole traders do not make the business a limited company - they trade and take money from the trade as profit.

Petrusclavus

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