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'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.
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?
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.