Living & working in the USA for a UK Employer - Possible? Tax?

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Living & working in the USA for a UK Employer - Possible? Tax?

10 posts & 4 voices | Started 1 year ago by Militant_biker | Latest reply from Militant_biker

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Militant_biker - Member

I'm moving to the USA in the Autumn, but my employer here wants to keep me on as somethings I do are a bit irreplaceable (yay!).

If I live in the USA, is it possible to work for a UK based employer, either directly, or as a self employed contractor or something similar, whilst paying all the taxes I need to, without doing anything illegal? My wife is getting a J1 visa for academics, and I will get a J2 derivative, which doesn't allow me to work in the USA, although I can apply to work, but only after I'm there...

I've had a look at the UK direct gov stuff here (http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_10026136) but my brain just exploded. Ordinarily Resident? Resident? Domiciled?

Can anyone explain in plain English, or point me in the right direction of who to go and speak to?

Thanks
Rick

Posted 1 year ago #
infradig - Member

ygm

Posted 1 year ago #
zigzag69 - Member

It's do-able, or at least it was in 1998. I worked the first 6 months of my time in the states as a UK employee (L1 visa), then transferred over to the US payroll. I think it's covered by a tax treaty between the US and UK, but there are limitations, I don't think you can do it indefinitely.

So it's complex (or at least it seemed that way to me) - My company paid accountants to handle my UK/US tax returns for that first year. So I never really found out that much about it. A couple of things to think about though... You might want to keep paying NI here so you can qualify for a UK state pension - even if you aren't planning on coming back, it's something that I wish I'd done (ended up coming back to the UK after 6 years). Also don't forget about State income tax, I don't think that's covered by the tax treaty.

Bottom line, if your employer wants to keep you on as a UK employee, have them stump up for an accountant to sort this out for you.

Posted 1 year ago #
Militant_biker - Member

infradig - thanks for the email - replied to it.

zigzag 69 - thanks for the info. It does seem massively complex, and it's something my employer hasn't had to worry about before, so it's all a bit crazy. I definitely want to keep up NI, as we may only be out for a year.

Posted 1 year ago #
konabunny - Member

I will get a J2 derivative, which doesn't allow me to work in the USA

You are not allowed to work in the USA. It doesn't matter if you are being paid offshore, as an employee of a foreign company etc. If you work in the US, you will be violating (US) immigration law. This is your major problem.

If and when you get permission to work, then the simplest way is to just be an independent contractor and send the UK company an invoice every month. You will have to pay US federal, state (if applicable) and city (if applicable) income tax - but there are a bunch of writeoffs that you can use.

You can make voluntary NI contributions from abroad - you don't have to be an employee of a UK company.

Posted 1 year ago #
Militant_biker - Member

Konabunny - thanks for the info, I had thought this would be the case, but couldn't find it in black and white anywhere. Looks like it might be a year riding bikes for me then :/

Posted 1 year ago #
konabunny - Member

couldn't find it in black and white anywhere.

Even though I am fairly sure of it, don't believe me, I'm just some pillock off the internet. Also - you need to find out whether the application for work authorisation is routine and how long it takes. BritishExpats US board may be a useful resource for links - a huge volume of immigration advisory info is available online.

Posted 1 year ago #
Militant_biker - Member

Wow - that BritishExpats board is a brilliant resource, thanks for pointing that out.

Much appreciated

Rick

Posted 1 year ago #
konabunny - Member

Top tip: use the search function to go through old threads before you post any questions because the vitriol for hapless "I'm a hairdresser, how do I move to Florida?" first time posters is eyewatering!

Posted 1 year ago #
Militant_biker - Member

Indeed! I read a few posts and then just hit the search button. There're threads on there from people in exactly the same visa situation, suggesting an EAD work permit is not impossible to get once I'm out there.

Posted 1 year ago #

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