Hi,
My wife and I currently live in New York but will be relocating to the UK shortly. She wishes to continue working for her advertising agency remotely so has set up a UK Ltd Company to undertake contracting work. Work will only be undertaken remotely from the UK.
If she completes a W8-BEN-E to avoid withholding tax, given the taxation treaty between the UK and US, could anyone tell me whether her Ltd Co will still have to file a US tax return with the IRS? For context, she will be paid $7K per month for 3 months.
And if she allowed withholding tax at 30%, would she have to file a US tax return with the IRS?
And one further question: noting it will be less effective in reducing the tax paid, is she required by HMRC to pay herself a salary from her UK Ltd Co or could she simply pay the appropriate corporate tax and distribute the small balance in the form of dividends? Therefore avoiding the admin required for national insurance payment . We are just trying to keep it as simple as possible.
Any advice would be gratefully received.
My wife and I currently live in New York but will be relocating to the UK shortly. She wishes to continue working for her advertising agency remotely so has set up a UK Ltd Company to undertake contracting work. Work will only be undertaken remotely from the UK.
If she completes a W8-BEN-E to avoid withholding tax, given the taxation treaty between the UK and US, could anyone tell me whether her Ltd Co will still have to file a US tax return with the IRS? For context, she will be paid $7K per month for 3 months.
And if she allowed withholding tax at 30%, would she have to file a US tax return with the IRS?
And one further question: noting it will be less effective in reducing the tax paid, is she required by HMRC to pay herself a salary from her UK Ltd Co or could she simply pay the appropriate corporate tax and distribute the small balance in the form of dividends? Therefore avoiding the admin required for national insurance payment . We are just trying to keep it as simple as possible.
Any advice would be gratefully received.
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