Contracting With A US Based Company

[Misterfox]

Hi,

Has anyone had a contract with a US based company whilst working remotely in the UK ?

Any pit falls or things to look out for compared to a contract with a UK company ie get paid in pounds rather than dollars to avoid currency fluctuations?

Many thanks
Chris

[ResistanceFighter]

If they will pay you in £, great, if not look at using Wise. You can hold the payments in whatever currency they were paid in and convert when you are ready

[WTFH]

Are they a company that is used to dealing with UK remote workers?
Are you going via an agency or direct?
What country will the contract be made out in?

Most of my US work has been done with contracts from Swiss companies, but it's a few years since I've done that.

[jamesbrown]

Yes, lots of them.

1. UK jurisdiction and governing law, ideally. Not likely, though.
2. PI insurance that covers U.S. jurisdiction and/or governing law of a U.S. state (see above).
3. Check the contract terms carefully, i.e., a legal review as well as an IR35 review (Chapter 8 is relevant, Chapter 10 if they have a UK presence).
4. Use a dedicated multi-currency business account that offers the inter-bank FX rate plus a transparent fee, such as Wise. Or invoice in GBP.
5. Make sure this company understands its responsibilities, particularly w/r to the IRS. There is no reporting or withholding required for the non-U.S. source income (technical term --> UK) of a non U.S. person (technical term --> YourCo). In other words, don't get into a situation where they report payments to the IRS using a 1099 form, which is completely inappropriate (but a common blunder). They may ask for a W8-BEN, but that is their responsibility (to ask), not yours to tell them.