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Been offered a years employment in the U.S on a self employed basis.
Will I be liable to U.K tax?
My wages will be paid into a U.K bank.
If you're away for the vast majority of the year you probably qualify as UK non domiciled 🙂 although I'd be surprised if you weren't liable for US tax.
It used to be that you could have an NT (no tax) tax code if out of the UK, but paid here. Not sure now.
Maybe some US exposure.
I did this about 10 years ago in Germany, had a single DD to a local bank account for my rent etc and took the rest out of cash machines - didn't have a problem and saved a barrow-load.
No tax for a year sounds pretty good to me, 5 years of that and pay my mortgage off.
Nice dream.
Current rule as per HMRC is that you are not liable for UK income tax if you are not in the UK more than 90 days per tax year (includes travel days partially in country).
If you do take the job in the US, my advice having worked in Russia for past six years (on rotation):
1. If it's very well paid, take the job in April 2012 (you are already liable for UK tax for current tax year, assuming you've spent 90 days or more in-country since April 5th 2011)
2. Have a UK accountant complete your tax return properly. Best use Ex Pat Tax Consultants in Newcastle (who I use) or similar. They will need to change your status to "non domiciled" and you must hang on to all the proof of travel, use of ATMs abroad etc etc.
As mentioned above you will have some US tax exposure, gained after spending just 30 days in country! So in this case you're pretty screwed, as their rates are nearly as high as ours, offhand.
You need to read sections 8.5 and 8.8 of this for starters.
[url= http://www.hmrc.gov.uk/cnr/hmrc6.pdf ]HMRC 6[/url]
Basically you can arrange it so that you won't pay UK income tax, but you will be paying US tax.
Eh? How does that work with the immigration if you're not going to be an employee (I'm assuming you're not a US citizen/PR etc already)?
Level of income tax depends on where you are in the US. Some states don't have income tax so you just pay federal income tax. Work in NYC and you'll pay federal, state and city income tax rates.
The people I will be working for are paying the City tax in Cleveland Ohio.