Contractor based in UK working for US company in need of advice

**cojak** · 10 November 2016, 10:48

Contractor based in UK working for US company in need of advice

Get an accountant, there are recommended ones on this forum.

You're a business now. There's more to it than 'paying your tax/NI and going on your way'.

**Lance** · 10 November 2016, 10:54

Originally posted by cojak View Post

Get an accountant, there are recommended ones on this forum.

You're a business now. There's more to it than 'paying your tax/NI and going on your way'.

It's an assumption he's a business now. He may well just be getting the cash paid to his personal bank.
So self-employed might be an option (although he should have told HMRC already).

An accountant would be useful but would they be able to answer the US tax questions? It's definitely the next port of call for the OP though.

**northernladuk** · 10 November 2016, 11:12

For 2.5k a month and no expenses brolly might be an easy option for him as well. If so have a chat to Contractor Umbrella who post on here a lot.

Loving the way the OP has taken the gig without researching it first. Wonder how pleased they would be if turns out he should actually be paying 60% tax. Gig won't look so rosey then

**Fred Bloggs** · 10 November 2016, 12:09

If he never sets foot out of the UK why would he have to pay US taxes? The mantra here has long been "you pay tax where you work". Myself, I'd likely consider clearing off to somewhere where there is no tax and just carry on as normal.

**VectraMan** · 10 November 2016, 12:41

It should be UK tax only.

As you've already been paid by the sound of it maybe it's better just to be self employed. But you should be IR35 proof which means a Ltd. is probably the best way and especially if you're prepared to do the work yourself.

It sounds like this would be outside the scope of what brollies usually do, but no harm in asking.

**BlasterBates** · 10 November 2016, 12:49

If this is all done in the UK then it's no different to an American walking into a shop in the UK and buying a pair of a shoes, i.e. there should be no US tax liability.

I would just see an Accountant and set up a UK ltd. You need to clarify VAT rules if invoicing a US customer.

**northernladuk** · 10 November 2016, 12:52

Originally posted by BlasterBates View Post

If this is all done in the UK then it's no different to an American walking into a shop in the UK and buying a pair of a shoes, i.e. there should be no US tax liability.
.

Indeed but we would give him opinion on his countrys leadership choices as we've all suddenly become experts on American politics .

**jaspin** · 4 January 2017, 19:44

Originally posted by Fred Bloggs View Post

If he never sets foot out of the UK why would he have to pay US taxes? The mantra here has long been "you pay tax where you work". Myself, I'd likely consider clearing off to somewhere where there is no tax and just carry on as normal.

I'm afraid the USA is a citizenship based Tax Country. Meaning all US citizens, regardless of where they live are required to file taxes. You may not end up owing any, but you still have to file are report all earnings, bank accounts outside the USA or you pay heavy fines. Business accounts apparently also have silly taxes.

**Fred Bloggs** · 4 January 2017, 23:29

Originally posted by jaspin View Post

I'm afraid the USA is a citizenship based Tax Country. Meaning all US citizens, regardless of where they live are required to file taxes. You may not end up owing any, but you still have to file are report all earnings, bank accounts outside the USA or you pay heavy fines. Business accounts apparently also have silly taxes.

That's right. I believe the only two countries in the world to do that are the US and Eritrea. Have I missed something? The OP hasn't said he is a US citizen has he?

Contractor based in UK working for US company in need of advice