UK contractor, US company - help!

[emdee]

Hi folks,

I just registered as I'm finding it difficult to figure out what the right way to set up my tax etc is. I just started working for a US company. I'm their only employee in the UK and I work from home - no company presence or address in the UK. I'm a contractor rather than a regular employee. From what I have read, it sounds like I'd be deemed as employed by HMRC though and the PAYE Direct Payment scheme (PAYE20100 - Employer records: set up employer record: DPNI scheme - direct payment (tax and NIC)) is the correct approach. Problem is, I've no idea how to get that set up or if there is a better solution.

I looked at Umbrella Companies but then I'd be paying Employers NIC, which I don't think I should be paying.

Any advice would be very welcome!

Thanks.

[cojak]

Welcome emdee!

You'll find a lot of answers to your questions within the CUK website.

On the right you'll find CUK Navigation. >>>>>>>>>

Look down and you'll come to the First Timers section. Have a read through there.

Basic expenses questions answered here: Contractor Expenses - How to claim Travel and other expenses via Limited Company or Umbrella

Then pay particular attention to IR35.

If you go into the Accounting/Legal forum you'll discover the thread Basic advice when running your own contractor business.

Guide to Contracts also has some good articles.

Do you want advice on the state of the contract market for your specialism/location? Have a look at this website; it will answer most if not all of your questions: IT Jobs Watch, Tracking the IT Job Market


And finally - accountant recommendations - Ta-da!

Happy reading!