Glossary · US Tax
Schedule C
Schedule C reports the income and expenses of a US person self-employment or sole-proprietor business. A self-employed American in the UK typically reports the UK trade here, and the net profit also feeds self-employment tax.
Profit or Loss From Business (Form 1040)
In more detail
Schedule C is where a sole proprietor or freelancer reports business income and deducts allowable expenses, producing a net profit that flows onto Form 1040. For a self-employed American in the UK, the UK business is usually reported here in US dollars. The net profit then feeds Schedule SE for self-employment tax, unless a totalization agreement assigns social-security coverage to the UK instead.
Does Schedule C apply to your situation?
Cross-border tax turns on the detail of your circumstances. Book a consultation and we'll tell you exactly where you stand.