Contracting in the USA

[phil5476]

Hi All,

I am currently in a long term contract for a UK company. Currently 20 months in. They want to send me to the USA for 9 months to a year beginning in 5 months. I will continue to be paid in the UK.

What issues do you forsee and can you help me with the details of the following:

1) I think the IRS will want to double tax me

2) My expenses will go through the roof and itis my expectation that HMRC will take a sudden interest in my company. How do I ensure I am on waterproof in regard to expenses.

3) Anything else you can think of!

Thanks In Advance

[stek]

You can't contract in the USA unless you have US citizenship, or a Green Card.

[jamesbrown]

Not possible, I'm afraid.

You could be seconded as an employee (of your current client, assuming they have a US branch) on an L1 visa, for example, but working in the US as a visitor (without citizenship or permanent residence) requires an employment visa. Contracting for your UK company is not an option for rather obvious reasons (they do not have a US payroll), aside from any visa issues.

[TheCyclingProgrammer]

Have you used the search function? /NLUK

http://forums.contractoruk.com/busin...rking-usa.html

[MacContractor]

I'm a dual citizen and I wouldn't bother due to the MASSIVE headache the tax situation would cause. US tax laws are ridiculously complicated, so I'd give it a miss if I were you.

[jamesbrown]

I'm a dual citizen and I wouldn't bother due to the MASSIVE headache the tax situation would cause. US tax laws are ridiculously complicated, so I'd give it a miss if I were you.

Yes, absolutely. Even if the OP could do this, it would be a nightmare dealing with Subpart F and other rules - very expensive annual returns.

[BlasterBates]

If you are working for a UK company it is indeed possible and without being taxed in the US.

I used to work for an company that sent us around the world, we would just go in on simple tourist or similar types of visas, and that included the USA though a long time ago. We would stay there for months. I was in the far East.

This is OK provided you are working directly for the UK company either as a permie or contractor.

I would get advice though on that and make sure you get the necessary type of visa.

I know this is generally case in most countries.

What you couldn't do easily, would be to work directly for a US company.

[ITPRO2]

If you are working for a UK company it is indeed possible and without being taxed in the US.

I used to work for an company that sent us around the world, we would just go in on simple tourist or similar types of visas, and that included the USA though a long time ago. We would stay there for months. I was in the far East.

This is OK provided you are working directly for the UK company either as a permie or contractor.

I would get advice though on that and make sure you get the necessary type of visa.

I know this is generally case in most countries.

What you couldn't do easily, would be to work directly for a US company.

Working under a tourist visa is very bad advice. I would ignore every word of this.

[jamesbrown]

If you are working for a UK company it is indeed possible and without being taxed in the US.

I used to work for an company that sent us around the world, we would just go in on simple tourist or similar types of visas, and that included the USA though a long time ago. We would stay there for months. I was in the far East.

This is OK provided you are working directly for the UK company either as a permie or contractor.

I would get advice though on that and make sure you get the necessary type of visa.

I know this is generally case in most countries.

What you couldn't do easily, would be to work directly for a US company.

The world has changed, and this advice is wrong. On the contrary, they could only do this as an employee of a US company. There is no appropriate visa (if you disagree, please indicate which visa applies). Certainly, it's impossible under the Visa Waiver Program or on a B1 business visa, neither of which support "productive work". Further, a visa is granted on the basis of a US company petitioning the USCIS for their employee or potential employee. A UK company cannot petition the USCIS. Further, it's unclear what you mean by "without being taxed in the US". Even as a nonresident for tax purposes, if you have income from personal services performed in the US, that income is effectively connected with a US trade or business and is taxable. Residents for tax purposes are taxed on their worldwide income. US citizens are taxed regardless of residency.

[stek]

If you are working for a UK company it is indeed possible and without being taxed in the US.

I used to work for an company that sent us around the world, we would just go in on simple tourist or similar types of visas, and that included the USA though a long time ago. We would stay there for months. I was in the far East.

This is OK provided you are working directly for the UK company either as a permie or contractor.

I would get advice though on that and make sure you get the necessary type of visa.

I know this is generally case in most countries.

What you couldn't do easily, would be to work directly for a US company.

Sorry Blaster I normally agree with you but this isn't right. Everything is so much tighter now and whilst some third world countries might bend the rules even dodgy places like Russia will do you for working on a tourist visa.

I turned a short termer in Egypt down paying four figure daily rate (and not 20.00 quid!) because the agent said just turn up no visa needed, when the Egyptian consulate said I need a work visa, and it was kicking off there anyway and I didn't fancy getting banged up and any excuse....