Does a U.S. contractor working in the U.K. need a Visa?

[Bill616]

We are a U.S. consulting firm that has been asked by a U.K. company based in London to delegate one of our consultants to direct a one- to two-year project in London. Our consultant would be spending 2-3 weeks a month in London working out of the client's office. However, the consultant would maintain his U.S. residence and remain employed by our U.S. consulting firm. The U.K. company would pay a consulting fee to our U.S. consulting firm for the services rendered by our consultant, and our U.S. consulting firm would continue to pay our consultant's regular salary and payroll taxes here in the U.S. The consultant would continue to pay his personal income taxes in the U.S. It is understood that our consultant would not be eligible for any U.K. health or employment benefits. Instead, our firm provides the consultant with full worldwide health and liability insurance coverage. The U.S. consultant has no intention of immigrating to the U.K., will not be paid directly by the U.K. company, and will return to the U.S. when the project is completed. Does the consultant need a special visa to perform this work?

[acontractor]

Work permit perhaps

My feeling is that you do need some kind of work permit becouse you will be working on main land UK.

Here you will find more information about it.

UK Border Agency | Temporary workers - international agreement


all the best

[ASB]

We are a U.S. consulting firm that has been asked by a U.K. company based in London to delegate one of our consultants to direct a one- to two-year project in London. Our consultant would be spending 2-3 weeks a month in London working out of the client's office. However, the consultant would maintain his U.S. residence and remain employed by our U.S. consulting firm. The U.K. company would pay a consulting fee to our U.S. consulting firm for the services rendered by our consultant, and our U.S. consulting firm would continue to pay our consultant's regular salary and payroll taxes here in the U.S. The consultant would continue to pay his personal income taxes in the U.S. It is understood that our consultant would not be eligible for any U.K. health or employment benefits. Instead, our firm provides the consultant with full worldwide health and liability insurance coverage. The U.S. consultant has no intention of immigrating to the U.K., will not be paid directly by the U.K. company, and will return to the U.S. when the project is completed. Does the consultant need a special visa to perform this work?

You need to also look into residence from a point of view of UK taxes. If they are in the UK for 183 days or more then they are UK resident. The likely tax consequences of the could depend upon the specific history of the employee. However on the assumption that they do not have any other ties to the UK they will probably be not ordinarily resident and also not domiciled.

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

Assuming they are eligible to be taxed on the remittance basis then they are not taxed on their worldwide income but would be taxed on income arising in the UK. You may not think the income you are paying them arises in the UK, however HMRC almost certainly will and would expect this to accrue to UK tax; however there should be no nedd for employers NI (SS) since you do not appear to have a branch here; your employee may potentially elect to pay NI in there home country.

Assuming UK tax is payable then the impact on the US tax position will be dependant upon the terms of the DTA between the UK and the US. They may or may not be credit for the UK tax paid (if any), it is possible that one country may have sole taxing rights (depends on the treaty).

It is entirely possible in the UK to be resident for tax purposes in the UK and also resident in other jurisdictions. Whether the IS takes this view or not is not relevant to our authorities.

But you need specialist advice to the exact situation.

[bobspud]

We are a U.S. consulting firm that has been asked by a U.K. company based in London to delegate one of our consultants to direct a one- to two-year project in London. Our consultant would be spending 2-3 weeks a month in London working out of the client's office. However, the consultant would maintain his U.S. residence and remain employed by our U.S. consulting firm. The U.K. company would pay a consulting fee to our U.S. consulting firm for the services rendered by our consultant, and our U.S. consulting firm would continue to pay our consultant's regular salary and payroll taxes here in the U.S. The consultant would continue to pay his personal income taxes in the U.S. It is understood that our consultant would not be eligible for any U.K. health or employment benefits. Instead, our firm provides the consultant with full worldwide health and liability insurance coverage. The U.S. consultant has no intention of immigrating to the U.K., will not be paid directly by the U.K. company, and will return to the U.S. when the project is completed. Does the consultant need a special visa to perform this work?

By the time you sort it all out you may as well hire a UK local to handle the work for you. The travelling expenses will be quite high when you factor in the Dollar to UK Pound value in London.

[stek]

The only way I see is if the person in question fills the criteria, mainly previous earnings and suitable degree, they apply for a tier one visa, formerly HSMP.

If not the local firm will have to apply for a tier two, formerly work permit after fitting the criteria and applying the local tests, namely advertising for UK and EU staff and proving none are suitable, and being on the HM's list of companies approved for the work permit process.

[acontractor]

The only way I see is if the person in question fills the criteria, mainly previous earnings and suitable degree, they apply for a tier one visa, formerly HSMP.

If not the local firm will have to apply for a tier two, formerly work permit after fitting the criteria and applying the local tests, namely advertising for UK and EU staff and proving none are suitable, and being on the HM's list of companies approved for the work permit process.

Tier 1 General (formally HSMP) is now closed for new applicants unless candidate have some sort of exceptional talent.

From experience I can tell you that Tier 2 is a lot work. You might need to recruit an immirgarion layer for this.

Best thing to do to hire someone from within UK.

[BlasterBates]

Agree with the above. Looks like your consultant will be working in the UK. Looks like your company would need to register a branch in the UK. This isn't just export, you will have a business activity in the UK. To do this right you should set up a Ltd in the UK, employ a consultant and tax earnings as a result of the activity in the UK. This is all in the double taxation treaty.