Programming project advice

[Mikeio]

Hi guys

After 18 years of employment and being made redundant, a small US based company is wanting to contract my software design and programming skills for a specific entertainment project - which I will do from home.

I am here to ask your advice on the best way to set this up, and what pitfalls to avoid regarding tax issues (and overheads incurred being paid by a US company to a UK bank account).

Would you recommend setting up as a sole trader or limited company?

Thanks in advance,
Mike.

[Sockpuppet]

Get a USD bank account and be self employed in the UK if they will let you. Otherwise Ltd.

[Mikeio]

Hi, sorry, I don't understand the reasoning. If I'm self employed, what's the advantage of a US bank acct over a UK one?

Mike

[NotAllThere]

He said a USD account. I.e. a UK bank account denominated in $.

[Gary_Jones]

you would be MUCH better off if you could get your employer to sponser you a short term working visa (1 year) and get paid in US dollars & pay full US tax. Then at the end of the year you will get ALL of your tax back, every single dime - as you are not a US citizen, nor have you lived there.

You DO have to declare this as "foreign income" but only if HMRC send you a Self Assesment (which is unlikely if you haven't had one before).

[ASB]

You DO have to declare this as "foreign income" but only if HMRC send you a Self Assesment (which is unlikely if you haven't had one before).

One must also decalre it even if a self asessment form is not received. The onusis on the taxpayer to get it right. The OP is still within the UK tax system and it will legally be subject to UK taxation.