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US citizen, UK resident to contract with a US company without a UK entity

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    US citizen, UK resident to contract with a US company without a UK entity

    Hello,
    I am a US citizen living in the UK with a consultant services agreement to work with a US company without any UK entity. I seek advice ASAP on how to best set this up given my American citizenship and UK tax residency.

    Details:
    • I am responsible for sorting out taxes to HMRC and the IRS.
    • My contract looks a lot like an employment contract (paid leave, other benefits, etc.) so it would likely fall under IR35 in the UK. (If they did have a UK entity, I would be an employee rather than a contractor.) The Consultant Services Agreement contract is governed under US law and in my name.
    • I am interested in renting a second bedroom to use as my office and want to continue contributing to a UK pension.
    • I am considering setting up a UK Ltd company to receive the gross payments from which I would have to divvy out UK taxes, pension contributions, and then my post-tax salary to my personal account. I don't know what the best set up is though given I am also an American with US tax obligations. The job starts next week so I urgently need to determine what the best set up is so I can be compliant with both UK and US taxes in the most efficient manner.
    • My husband is a British citizen. My current thinking is that the best option is for him to open a UK Ltd company as the sole owner and for me to be the sole employee of that company. Because I would likely fall within IR35, he would have to administer payroll and NI contributions but wouldn't have US tax obligations.
    • I will be paid gross to any account I choose. I am currently considering a Transferwise multi-currency business account but am not sure if it should be based in the UK or US. (I would like to avoid having the company use a bank to convert USD to GBP.)
    • I would also love a recommendation for a competent, ideally affordable, US/UK tax and contracting professional.
    • If an umbrella company is necessary, how can I do this in as lean a way as possible? What is the best umbrella co?
    Thank you for your help!!
    I've seen a lot of helpful information from WordIsBond and jamesbrown - perhaps you have advice here?
    Thanks again. Any advice would be so greatly appreciated.
    Last edited by USinUK; 7 September 2021, 21:07.

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